WASHINGTON, D.C. – Today, U.S. Senator Jacky Rosen (D-NV), a member of the Senate Committee on Commerce, Science, and Transportation and the Senate Climate Solutions Caucus, announced her co-sponsorship of the Electric Cars Act, legislation that would reduce America’s carbon emissions by fully extending the electric vehicle tax credit for 10 years and deploy electric vehicle charging infrastructure across the nation.
“Increasing the number of electric vehicles on the road will help to combat the growing threat of climate change,” said Senator Rosen. “I’m proud to support this legislation which would extend tax credits for electric and alternative fuel vehicles so that we can continue to tackle climate change by decreasing fossil fuel use and promoting cleaner transportation. I will continue working to protect the environment of Nevada and our nation.”
BACKGROUND: The transportation sector is now the largest source of greenhouse gas pollution in the United States, and a significant source of carbon pollution worldwide. Countries across the globe have recognized this challenge and are aggressively investing in electric vehicle technologies in order to bolster fuel security, reduce pollution, and improve health outcomes. Nearly a dozen countries and dozens of cities have committed to phasing out internal combustion engines. The U.S., however, is at risk of falling behind on technology development and deployment of electric vehicles.
The electric vehicle (EV) tax credit has been instrumental in helping advance the American EV market, and ensures that consumers have a greater range of options when selecting their next vehicle. Given global efforts to transition away from internal combustion engines, the U.S. should not hamstring the production and support of domestically manufactured electric vehicles.
More specifically, the Electric Cars Act would improve this vital tax credit by:
- Eliminating the per manufacturer cap, allowing consumers access to the tax credit for the next 10 years, regardless of the manufacturer from which they purchase their car;
- Allowing buyers to use the tax credit over a 5-year period, or apply the credit at the point of sale to reduce the price of the vehicle, making the credit more applicable to those without large tax liability; and
- Providing a 10-year extension of tax credits for alternative fuel vehicles and charging infrastructure to incentivize the buildout of this important infrastructure around the country.