Proposals floating around to make EVs much more expensive
Sorry if this is old news. Axios reporting today Congressional republicans have been floating a 50-page "tax-cut" document full of wish list items. I've gone through it and there are several places where EVs are on the chopping block. Basically a combination of repealing CAFE standards (making EVs less attractive by making ICE cars cheaper) and increasing fees/taxes on EVs.
This post is not meant to be particularly political; just thought this group would be interested in what's being considered for EV ownership moving forward.
Link to document:
https://www.finance.senate.gov/imo/media/doc/budget_optionspdf.pdf?stream=business
Summary of EV-specific measures below:
Page 5
Repeal Title I of IRA (Excluding: 45Q Carbon Sequestration, 45U Nuclear Power, 45Z Clean Fuels, and EV Tax Credit)
$404.7 billion in 10-year savings
Reducing 45Q, 45U, and 45Z would streamline and reduce government intervention in the energy industry that props up the green energy sector and distorts market competition.
Close the EV credit leasing loophole
$50 billion in 10-year savings
Closing the EV credit leasing loophole ensures that only EV buyers, not lessees, receive tax credits, preserving integrity of the program and preventing misuse of taxpayer dollars.
Page 6
Repeal Green Energy Tax Credits
Up to $796 billion in 10-year savings
This option would repeal credits created and expanded under the Inflation Reduction Act. These credits are related to clean vehicles, clean energy, efficient building and home energy, carbon sequestration, sustainable aviation fuels, environmental justice, biofuel, and more. The full cost of the IRA provisions is about $329 billion, which becomes about $800 billion when paired with the tailpipe emission rule designed to dramatically increase the uptake of EVs and EV credit use. Based on political will, there are several smaller reform options available (starting as low as $3 billion) that would repeal a smaller portion of these credits.
Page 12
Increase Electric Vehicle Fees
Unknown savings
Electric vehicles do not currently contribute to the Highway Trust Fund, which is largely funded by the federal gas tax. This option would assess a new fee on electric vehicles.
Page 23
Inflation Reduction Act Repeals in Titles V and VI
$17.3 billion in 10-year savings
Title V programs include ($12.69 billion):
o Funding for Department of Energy, Loan Program Office ($3.9 billion)
o Advanced vehicle technology manufacturing ($1.6 billion)
o Transmission facility financing ($14 million)
o Grants for interstate electricity transmission lines ($337 million)
Title VI Programs include ($4.64 billion):
o Clean heavy-duty vehicles ($621 million)
o Diesel emissions reductions ($20 million)
Page 24
Repeal EPA Tailpipe Emissions Rule and Department of Transportation CAFE Standards Rule
$111.3 billion in 10-year savings
The EPA Tailpipe and DOT CAFE Standard rules considerably increase the usages of the IRA’s EV tax credits. It is likely that these rules will be among the first repealed by Trump executive action.
Page 48
Modify Eligibility to Certain IIJA Programs
Unknown costs or savings
Given that a rescission of IIJA advance appropriation funds would retain its emergency designation and therefore be unable to offset new spending in a reconciliation bill, this proposal would impose ‘restrictions’ or ‘limitations’ on certain IIJA advanced appropriations of duplicative programs that are eligible for several competitive grant programs (bike paths, EV charging stations, Amtrak, etc.) which can crowd out more traditional infrastructure projects. A restriction or limitation would be scored with regular outlay savings if it is significant enough to create a budgetary effect, according to CBO.
Electric Vehicle Inclusion to the Highway Trust Fund (HTF)
Unknown savings
Incorporate electric vehicles into the HTF’s revenue stream to contribute toward constructing and improving the nation’s infrastructure.