WASHINGTON – NACS, joined by other groups, urged Congress “not to extend or expand the federal tax credit for electric vehicles as part of tax extenders or any other bill during the rest of this session.” The letter was signed by the American Fuel & Petrochemical Manufacturers, American Petroleum Institute, Petroleum Marketers Association of America and the Society of Independent Gasoline Marketers of America and sent to Senate Majority Leader Mitch McConnell (R-AL) and Speaker of the House Paul Ryan (R-WI).
“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,” NACS said in the letter. “Even if the new policy has a phase out year, once it is included as part of tax extenders, it is very likely to be renewed year-by-year.
“The EV tax credit is particularly bad policy. … Electric vehicles are, for the most part, expensive luxury or performance vehicles that only the wealthy can afford. While GM is close to it, only Tesla has hit the cap so far. Therefore, lifting the phase out cap would provide immediate benefits solely to a company that specializes in luxury and performance vehicles. …
“Environmental benefit is a purported purpose for EV subsidies, but, globally, most EVs currently start their life with a greenhouse gas deficit. … Car companies are busy investing billions in research and development of electric vehicles. Sales of EVs are increasing, and product offerings are growing. These vehicles should compete for customers without government choosing sides.”