The American Fuel & Petrochemical Manufacturers, American Petroleum Institute, and three other national trade associations asked Republican leaders on Nov. 19 not to extend or expand the federal tax credit for electric vehicles (EV) during the rest of this session of the US Congress.
“We encourage the House and Senate to build on tax reform and not take a step backward by expanding the EV tax credit this Congress,” said the groups, which also included the Petroleum Marketers Association of America, Society of Independent Gasoline Marketers of America, and National Association of Convenience Stores.
“Even if the new policy has a phaseout year, once it is included as part of tax extenders, it is very likely to be renewed year-by-year,” they said in their letter to US Senate Majority Leader Mitch McConnell (R-Ky.) and House Speaker Paul D. Ryan (R-Wis.)
The EV tax credit is particularly bad policy because it’s a giant transfer to wealthy Americans, the groups said. “According to the congressional Joint Committee on Taxation, 78% of the individual filers for the credit make more than $100,000/year and receive 83% of the credits,” they said.
Automakers are investing billions of dollars in EV research and development, the letter said. “Sales of EVs are increasing, and product offerings are growing. These vehicles should compete for customers without government choosing sides,” it said.
“In summary, it is unwise public policy to subsidize a highly inefficient means of [greenhouse gas] reduction that primarily benefits the wealthy, driving up the deficit or forcing taxpayers to make up the difference,” the groups said.
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