Summary
The Senate is considering ending federal tax credits for electric vehicles (EVs) earlier than planned, with a proposed end date of September 30. The current Senate draft suggests the credits would stop sooner than the House version, but changes to the bill are still possible as it continues through the legislative process.
Key Facts
- The Senate's version of a tax and spending bill could end electric vehicle tax credits by September 30.
- The House version of the bill proposed ending these credits by late 2025 or 2026.
- The bill is not final; the Senate is voting on amendments, and the House and Senate versions will need to be reconciled.
- Some groups, like the American Energy Alliance, support ending the credits quickly, while others, like auto dealers, want a more gradual phase-out.
- Current credits include a used vehicle credit up to $4,000, aimed at helping lower- and middle-income buyers.
- There is concern that ending the credits suddenly could disrupt the car market and confuse consumers.
- Part of the debate involves the "lease loophole," which allows tax credits without income and price restrictions, drawing criticism.
