H.R.1367 - Eliminate Lavish Incentives To Electric Vehicles Act; ELITE Vehicles Act (119th Congress)
Summary
H.R.1367, also known as the ELITE Vehicles Act, proposes to amend the Internal Revenue Code of 1986 to repeal the tax credits for new clean vehicles, previously-owned clean vehicles, and qualified commercial clean vehicles. It also seeks to exclude electric vehicle recharging property from the alternative fuel vehicle refueling property credit. The bill targets sections 25E, 30C, 30D, and 45W of the Internal Revenue Code.
The bill aims to eliminate what it describes as 'lavish incentives' for electric vehicles. The changes would apply to vehicles purchased, or for which a binding contract was entered into, 30 days after the enactment of the Act.
The bill was introduced in the House of Representatives on February 14, 2025, and referred to the Committee on Ways and Means.
Expected Effects
If enacted, this bill would eliminate federal tax credits for the purchase of new and used electric vehicles, as well as commercial electric vehicles. It would also remove incentives for electric vehicle charging infrastructure. This could increase the upfront cost of electric vehicles for consumers and businesses.
The removal of these incentives may slow the adoption of electric vehicles. It could also impact the growth of the electric vehicle charging infrastructure.
Potential Benefits
- Potentially reduces government spending and the national debt by eliminating tax credits.
- May lead to a more market-driven approach to electric vehicle adoption, rather than relying on government subsidies.
- Could free up resources for other government priorities.
- May benefit traditional gasoline vehicle manufacturers by reducing the price advantage of electric vehicles.
- Could simplify the tax code by removing specific credits related to electric vehicles.
Most Benefited Areas:
Potential Disadvantages
- Could slow the adoption of electric vehicles, hindering efforts to reduce carbon emissions and combat climate change.
- May increase the cost of electric vehicles for consumers, making them less accessible to lower-income individuals.
- Could negatively impact the electric vehicle industry, potentially leading to job losses.
- May reduce the competitiveness of the U.S. auto industry compared to other countries that offer EV incentives.
- Could discourage investment in electric vehicle charging infrastructure.
Constitutional Alignment
The bill appears to be within the constitutional authority of Congress to levy taxes and regulate commerce (Article I, Section 8). The Constitution grants Congress broad power to tax and spend for the general welfare. The repeal of tax credits falls under this power.
However, some might argue that repealing incentives for electric vehicles could hinder the 'general Welfare' by slowing the transition to cleaner energy sources. This is a matter of policy interpretation rather than a direct constitutional conflict.
There are no apparent violations of individual rights or freedoms protected by the Bill of Rights.
Impact Assessment: Things You Care About ⓘ
This action has been evaluated across 19 key areas that matter to you. Scores range from 1 (highly disadvantageous) to 5 (highly beneficial).