Sen. John Barrasso (R-WY), chairman of the Senate Committee on Environment and Public Works (EPW), recently introduced a measure designed to end federal electric vehicle tax credits while ensuring alternative fuel vehicle drivers pay into the Highway Trust Fund.
“The electric vehicle tax credit largely benefits the wealthiest Americans and costs taxpayers billions of dollars,” Barrasso, who introduced the Fairness for Every Driver Act, said. “My legislation levels the playing field for all drivers across America. Gas, electric and alternative fuel vehicles use the same roads. All should contribute to maintain them. My bill supports the Highway Trust Fund by making sure all drivers pay into the account that improves America’s roads.”
The Manhattan Institute estimates ending the electric vehicle tax credit would save roughly $20 billion in taxpayer funds over the next decade, officials said, noting the bill would require a federal highway user fee on alternative fuel vehicles that will generate billions for the Highway Trust Fund over the next 10 years.
The bill would terminate and repeal the federal electric vehicle tax credit up to $7,500 per new electric vehicle purchased for use in the United States and impose a federal highway user fee on alternative fuel vehicles. It would also require that all user fees be collected with the user’s tax return and ensure the transfer of federal highway user fees into the Highway Trust Fund.