WASHINGTON, D.C. – Today, U.S. Senator Jacky Rosen (D-NV) announced that she helped introduce the Electric CARS Act of 2019, bicameral legislation that would fully extend the Electric Vehicle (EV) tax credit for 10 years and help develop critical alternative fuel charging infrastructure. Senators Jeff Merkley (D-OR) and Catherine Cortez Masto (D-NV) and Congressman Peter Welch (D-VT) are also leading the bill in Congress. Senators Martin Heinrich (D-NM), Sheldon Whitehouse (D-RI), Tina Smith (D-MN.), Kamala Harris (D-CA), Cory Booker (D-NJ), Dianne Feinstein (D-CA) and Bernie Sanders (I-VT) also cosponsored this legislation.
“By incentivizing consumers to use electric vehicles, we can make significant gains in promoting sustainable, eco-friendly solutions to reduce our carbon emissions,” said Senator Rosen. “I was proud to help introduce legislation reauthorizing this federal tax credit when I was in the House, and I look forward to working with my Senate colleagues on this bill and other forward-thinking legislation that creates good-paying jobs and moves us closer to a clean energy economy. I’ll continue taking action in Congress to support policies that allow Nevada to become an innovator in this space.”
BACKGROUND: Currently, a federal tax credit of up to $7,500 is available for buyers of electric vehicles. The number of credits is capped at 200,000 vehicles for each manufacturer, however, some manufacturers have already hit the cap and others are expected to do so soon, reducing and then eventually eliminating the tax credit for consumers.
The Electric CARS Act improves the Electric Vehicle (EV) tax credit, which helps American electric vehicle manufacturers advance the EV market and secures a wide range of options for consumers. Specifically, the Electric CARS Act:
• Eliminates the per manufacturer cap, allowing buyers to use the tax credit regardless of the manufacturer from which they purchase their car;
• Allows buyers to choose between using the tax credit over a 5-year period, or applying the credit at the point of sale, making the credit more helpful to buyers with lower tax liability; and
• Provides a 10-year extension of tax credits for alternative fuel vehicles and charging stations to incentivize the buildout of this important infrastructure around the country.
Last Congress, Senator Rosen helped introduce H.R. 6274 to reauthorize and expand the tax credit. Senator Rosen also introduced amendments to the House Republican tax bill to prevent the eventual elimination of tax credits for solar and geothermal energy. Senator Rosen is a supporter of renewable energy.