Barrasso bill would end electric vehicle tax credits

CHEYENNE (WNE) — U.S. Sen. John Barrasso, R-Wyo., Senate majority whip, on Wednesday introduced legislation to end the federal electric vehicle and charging stations tax credit.

If approved, this legislation would stop taxpayer money from subsidizing luxury electric vehicles for high-income individuals and corporations, Barrasso said in a news release.

The Eliminating Lavish Incentives to Electric Vehicles Act (S. 541) specifically would repeal the $7,500 tax credit for new electric vehicles, eliminate the tax credit for purchasing used EVs, wipe out the federal investment tax credit for electric vehicle charging stations, and close the “leasing loophole” that has allowed certain taxpayers and foreign entities to evade restrictions on EV incentives, according to the release from Barrasso’s office.

It would also stop China from exploiting loopholes and circumventing guardrails to access U.S. tax credits associated with electric vehicles.

“The hard-earned money of taxpaying Americans should not cover the cost for the luxuries of the nation’s elite. Nor should we be allowing China to infiltrate our markets and undermine our supply chain,” said Barrasso.

This story was published on February 13, 2025.