US Senator John Barrasso introduced a bill to eliminate the $7,500 tax credit for electric vehicles (EVs), citing concerns that the subsidies favor “luxuries of the nation’s elite” and allow Chinese influence in the market. The legislation would repeal a 2022 incentive aimed at encouraging EV adoption as a way to curb greenhouse gas emissions.
The move follows President Donald Trump’s vow to get rid of the subsidy, which he signed into law last month after reversing former President Joe Biden’s efforts. Barrasso’s bill is cosponsored by Senate Majority Leader John Thune and several other Republican leaders.
The proposed legislation would also end tax credits for leasing certain EVs and installing EV charging stations. The American Fuel & Petrochemical Manufacturers, a trade association for the petroleum industry, supports the measure.
However, opponents of the repeal argue that it could lead to higher costs for consumers, as taxes on the Highway Trust Fund would be passed on. The trust fund relies heavily on gas taxes paid by consumers and EVs do not currently pay into it, despite being heavier and potentially causing more damage to roads than internal combustion engine vehicles.
Barrasso claims that repealing the tax credits will help curb “Chinese infiltration” in the market and prevent high-income individuals from receiving government handouts.
Source: https://eu.freep.com/story/news/politics/2025/02/13/republican-senator-introduces-bill-to-kill-ev-subsidy/78477211007