H.R.312 - Restoring Vehicle Market Freedom Act of 2025 (119th Congress)
Summary
H.R.312, the Restoring Vehicle Market Freedom Act of 2025, seeks to repeal several tax credits related to alternative fuel vehicles. This includes repealing credits for previously owned clean vehicles, alternative motor vehicles, alternative fuel vehicle refueling property, new qualified plug-in electric drive motor vehicles, and qualified commercial clean vehicles. The bill aims to amend the Internal Revenue Code of 1986 to remove these incentives.
Expected Effects
If enacted, this bill would eliminate federal tax incentives designed to encourage the adoption of alternative fuel vehicles and related infrastructure. This could lead to decreased sales of these vehicles and slower development of refueling infrastructure. The removal of these credits could also impact consumer behavior and manufacturer strategies regarding alternative fuel vehicles.
Potential Benefits
- Potentially reduces government spending and simplifies the tax code.
- May lead to a more market-driven approach to vehicle technology adoption.
- Could free up resources for other government priorities.
- Aligns with a philosophy of minimal government intervention in the market.
- May reduce the tax burden on individuals and businesses by eliminating these credits.
Most Benefited Areas:
Potential Disadvantages
- Could slow down the transition to cleaner vehicles and reduce efforts to combat climate change.
- May increase the upfront cost of alternative fuel vehicles, making them less accessible to some consumers.
- Could negatively impact businesses involved in the production and sale of alternative fuel vehicles and related infrastructure.
- May reduce the competitiveness of the U.S. auto industry in the global market for electric vehicles.
- Could disproportionately affect lower-income individuals who rely on these credits to afford cleaner transportation options.
Constitutional Alignment
The bill's alignment with the Constitution primarily concerns the power of Congress to tax and spend, as outlined in Article I, Section 8. Congress has broad authority to lay and collect taxes to provide for the general welfare. The repeal of these tax credits falls within this power, as Congress can modify or eliminate existing tax provisions. However, some might argue that repealing incentives for environmentally friendly technologies could conflict with the broader goal of promoting the general welfare, though this is a matter of policy interpretation 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).