H.R.2566 - End Taxpayer Subsidies for Electric Vehicles Act (119th Congress)
Summary
H.R.2566, the "End Taxpayer Subsidies for Electric Vehicles Act," aims to repeal the clean vehicle credit outlined in Section 30D of the Internal Revenue Code of 1986. The bill targets the elimination of taxpayer-funded subsidies for electric vehicles. It was introduced in the House of Representatives on April 1, 2025, and referred to the Committee on Ways and Means.
The bill proposes to strike Section 30D from the Internal Revenue Code, along with related items in the table of sections. It also includes conforming amendments to other sections of the code, such as sections 30B, 38, 179D, 1016, 6213, 6417, 6501, and title 23, ensuring the removal of references to the clean vehicle credit.
The effective date specifies that the amendments will apply to vehicles placed in service in any calendar year beginning after the enactment of the Act.
Expected Effects
If enacted, H.R.2566 would eliminate the federal tax credit for the purchase of new electric vehicles. This would likely increase the upfront cost of EVs for consumers. It could also potentially slow the adoption rate of electric vehicles in the United States.
The repeal of the clean vehicle credit could impact the electric vehicle market. Manufacturers might adjust pricing or production strategies in response to the change in incentives. The long-term effects on the automotive industry and consumer behavior would depend on various factors, including technological advancements and market dynamics.
Furthermore, the removal of these subsidies could lead to a shift in consumer behavior, potentially favoring more fuel-efficient gasoline-powered vehicles or other alternative transportation methods. The overall impact on emissions and energy consumption would need to be carefully evaluated.
Potential Benefits
- Potentially reduces the tax burden on individuals who do not purchase electric vehicles.
- Could lead to a more market-driven approach to electric vehicle adoption, reducing government intervention.
- May encourage manufacturers to focus on reducing the cost of electric vehicles to make them more competitive without subsidies.
- Could free up government funds for other priorities.
- May reduce the national debt.
Most Benefited Areas:
Potential Disadvantages
- Could slow down the adoption of electric vehicles, hindering efforts to reduce carbon emissions.
- May increase the upfront cost of electric vehicles, making them less accessible to some consumers.
- Could negatively impact the competitiveness of the U.S. electric vehicle market compared to countries with subsidies.
- May discourage innovation and investment in electric vehicle technology.
- Could disproportionately affect lower-income individuals who rely on the tax credit to afford electric vehicles.
Constitutional Alignment
The bill appears to be constitutionally permissible under Article I, Section 8, which grants Congress the power to lay and collect taxes, duties, imposts, and excises to pay the debts and provide for the common defense and general welfare of the United States. The decision to provide or repeal tax credits falls within this broad authority.
There are no apparent violations of individual rights or liberties as defined by the Bill of Rights. The bill does not infringe upon freedom of speech, religion, or any other protected right.
However, some might argue that repealing incentives for electric vehicles could indirectly impact the "general Welfare" clause by potentially hindering efforts to combat climate change, though this is a matter of policy debate rather than a direct constitutional violation.
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).