Cassidy, Thune, Colleague Push to Stop Wealthy EV Owners from Double-Dipping on Tax Breaks
Published 4:38 pm Tuesday, April 25, 2023
WASHINGTON – U.S. Senators Bill Cassidy, M.D. (R-LA), John Thune (R-SD), Steve Daines (R-MT), Cynthia Lummis (R-WY), Pete Ricketts (R-NE), and Mike Rounds (R-SD) reintroduced the Ending Duplicative Subsidies for Electric Vehicles Act, legislation that would prohibit the automobile industry from double-dipping on federal subsidies, specifically electric vehicle (EV) tax credits, grants, and loans for EV manufacturing. The bill would require manufacturers to choose between receiving manufacturing loans and grants to lower the cost of EV production or having the vehicles they manufacture remain eligible for the EV credits under the so-called Inflation Reduction Act.
“The Louisiana family driving a 15-year-old pickup truck shouldn’t have to subsidize someone else’s $80,000 electric vehicle,” said Dr. Cassidy. “Just stop it.”
“My bill would protect American taxpayers from footing the bill for the Democrats’ sweeping windfall for EVs, especially for subsidies aimed at phasing out gas-powered vehicles,” said Senator Thune. “American automakers have been on the receiving end of historic amounts of taxpayer money, yet we saw them raise vehicle prices right as they prepared to receive even more government support. This common-sense bill would make automakers choose between grants and loans that subsidize their manufacturing operations or having the vehicles they make remain eligible for the expanded electric vehicle tax credit.”
Last August, Cassidy voted against Democrats’ partisan Inflation Reduction Act, which extended the consumer tax credit of up to $7,500 for new electric vehicles. It also provided $40 billion in loan authority for the Department of Energy Loan Programs Office, which can make loan guarantees for the manufacture of fuel-efficient vehicles or parts of those vehicles, including EVs and advanced diesel vehicles. The Inflation Reduction Act also directly subsidizes auto manufacturing through grants and loans.
Earlier this month, the Biden administration’s Environmental Protection Agency (EPA) proposed new federal vehicle emissions standards that would significantly reduce consumers’ vehicle options in order to promote EVs and prioritize its partisan climate agenda. If finalized, the EPA’s new standards could result in EVs representing two-thirds of vehicle sales by 2032, despite only accounting for 5.8 percent of vehicle sales in 2022.