House Republicans Move to Repeal Biden's Electric Vehicle Tax Credit
House Republicans are taking measures to repeal the Biden administration's electric vehicle (EV) tax credit, which they describe as "climate-crazed" and a financial burden on American taxpayers.
Representative Jodey Arrington from Texas plans to introduce the Eliminating Lavish Incentives to Electric Vehicles Act, aimed at eliminating tax credits for both new and used EVs, thereby reducing what he refers to as "woke and wasteful spending."
In a statement to Fox News Digital, Arrington criticized the Biden administration for running up significant costs, stating, "Democrats ran up the bill on the American people to the tune of billions of dollars." This reflects his concern over tax subsidies linked to the Inflation Reduction Act.
Under the Inflation Reduction Act, former President Biden established a tax credit of up to $7,500 to encourage the purchase of electric vehicles as a way to promote greener alternatives.
However, with recent moves by President Donald Trump to reverse several of Biden's green policies, Republican leaders are now focused on halting taxpayer funding for EV purchases.
Arrington's proposed bill seeks to eliminate taxpayer subsidies for luxury electric vehicles and close the loophole that allows tax credits for leasing EVs. He declared, "I will remain on mission to repeal Green New Deal climate handouts along with other woke and wasteful spending programs."
This legislation is supported by multiple members of the Ways and Means Committee and corresponds with an executive order recently signed by Trump that ends Biden's directive to have 50% of new car sales as EVs by 2030.
There is speculation that the EV tax credit could be abolished, with Tim Stewart, president of the U.S. Oil & Gas Association, commenting that automakers might feel relief if the credit is removed. He stated, "Losing $70,000 on an EV is not a winning business model and U.S. automakers know that."
Stewart also argued that the credit was a necessary incentive for consumers who were otherwise reluctant to buy EVs, and removing it would allow the auto industry to refocus on traditional production.
Tesla CEO Elon Musk, who recently began leading Trump's Department of Government Efficiency, admitted in July his support for eliminating the EV tax credit, posting, "Take away the subsidies; it will only help Tesla."
The shift in policy could benefit larger, financially stable companies like Tesla while potentially harming smaller manufacturers dependent on tax credits to make EVs affordable for consumers.
