S.1229 - End Taxpayer Subsidies for Electric Vehicles Act (119th Congress)
Summary
S.1229, 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 subsidies for electric vehicles by amending the tax code to remove the credit and related provisions. Introduced in the Senate, the bill seeks to discontinue financial incentives designed to promote the adoption of electric vehicles.
Expected Effects
If enacted, this bill would eliminate the clean vehicle credit, potentially increasing the upfront cost of electric vehicles for consumers. This could lead to a decrease in electric vehicle sales and a shift back towards traditional gasoline-powered vehicles. The repeal would also impact related sections of the tax code that reference the clean vehicle credit.
Potential Benefits
- Reduced government spending on electric vehicle subsidies.
- Potential for lower tax burden on taxpayers in general.
- Market forces may drive innovation and competition in the automotive industry without subsidies.
- Could lead to a more level playing field between electric and gasoline vehicle manufacturers.
- Simplification of the tax code by removing specific credits and related provisions.
Most Benefited Areas:
Potential Disadvantages
- Increased cost of electric vehicles for consumers, potentially hindering adoption.
- Slower transition to electric vehicles, impacting environmental goals.
- Reduced incentives for automakers to invest in electric vehicle technology.
- Potential job losses in the electric vehicle manufacturing sector.
- May disproportionately affect lower-income individuals who rely on the credit to afford electric vehicles.
Constitutional Alignment
The bill falls under Congress's power to tax and spend, as outlined in Article I, Section 8 of the Constitution. The Constitution grants Congress the authority 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. This bill represents a decision to alter the tax code, which is a power explicitly granted to Congress. The bill does not appear to infringe upon any specific constitutional rights or protections.
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).