Since taking office last month, U.S. President Donald Trump has threatened to impose tariffs on goods imported from places like Canada and Mexico (while implementing additional levies on China), and is also reportedly mulling the idea of killing off the existing federal clean energy tax credit. Such a move would mean that those who qualify for that credit – and purchase one of an ever-dwindling number of vehicles that qualify for it – wouldn’t be able to take advantage of those savings, and automakers like Ford could lose out on incentives for building EV plants. As such, the industry opposes such a move in general, but now, a group of senators is proposing an idea that could make buying an EV more expensive in a different way.
According to Reuters, Senator John Barrasso – who was joined by 14 other senators including Majority Leader John Thune – has introduced new legislation that would not only repeal the existing federal clean energy tax credit for new and used models, it would also end federal investments in EV chargers, and cease credits for leased electric vehicles.
Another bill proposes a one-time $1,000 fee that EV buyers would be required to pay at the time of purchase too, which is basically the equivalent of what ICE vehicle owners pay in federal gas taxes over the course of 10 years of ownership, according to Senator Deb Fischer. “EVs can weigh up to three times as much as gas-powered cars, creating more wear and tear on our roads and bridges,” Fischer said.
Currently, 24 different U.S. states charge a higher annual vehicle registration fee for EVs and some hybrid vehicles to help offset “lost” gas tax revenue. Those fees range anywhere from $50 up to $200 annually, which is intended to serve essentially the same purpose – to try and ensure that electrified vehicle owners are paying their “fair share” of road taxes, given the fact that pure EVs, specifically, don’t require gas to operate.
Comments
It’s a common sense move since they pay no fuel taxes at the pump for highways and maintenance. Plus they are heavier vehicles adding more stress to the life span of the roadways.
“EVs can weigh up to three times as much as gas-powered cars” a congresscritter actually said. Well, let’s just ban hybrids, SUVs and pickup trucks instead. Problem solved.
You were expecting the “brain trust” to actually make intelligent decisions on much of anything? Make America Smart Again!
All states should be charging an EV fee based on the EV’s weight, the minimum should be $500, the 10,000 lb. GM Hummer EV should have and annual fee of $3,000.
My license plates in Texas for an ev already are 5X what they were for my Edge Sport …..when I asked why they were so high I was told to make up for the gas tax used for road maintenece
I’m OK with this as an EV owner (see a better solution below), but as a taxpayer I would also like to see all of the oil and gasoline subsidies removed. That may bring the cost of Gasoline above $10/gallon. Let the free market decide!
BTW: It’s probably a better idea to have a road-use tax on the purchase of all tires to cover the road and highway maintenance. That way only the actual amount the vehicle is driven, (including faster wear on tires for heavier vehicles) would be taxed. It would be the same road use tax for gasoline, diesel, electricity, or any other option. Let the free market decide!
On tires makes the most sense!! But, that 50,000 mile tire would be expensive up front!! People would be driving on their tires till they were nothing but steel belts.
These heavy electric pigs are destroying the roads and should pay more in taxes then ICE vehicles.
If Jim Farley & co. would just build some small, light, and cheap EVs in the USA, we would scarf them up. Like the ones they build in Europe.
America u have turned into such idiots! Someone said they should pay their fair share, Really! You should be mad at all the corporate greed that raised prices and oil companies not to mention their big tax breaks. What we are experiencing is a bid flaw in capitalism because it may be the best But it’s far from perfect.