Senate Republicans Challenge Electric Vehicle Tax Credits

Senate Republicans have introduced a revised tax and budget bill proposing the end of tax credits for new and used electric vehicles starting September 30. This move contrasts with former President Biden's policy encouraging EV adoption to combat climate change by reducing emissions.

Senate Republicans unveiled a revised proposal on Friday to eliminate the $7,500 tax credit for new electric vehicle sales and leases from September 30. The proposed budget bill also aims to end the $4,000 tax incentive for used EV purchases.

Previously, the plan would have phased out the tax credit for both new and used electric vehicle sales within 180 days post-enactment and ended the credit for leases of non-North American assembled vehicles immediately. This latest legislation represents a shift in policy direction, veering away from former President Joe Biden's pro-EV and renewable energy stances.

The Republican focus on reducing EV tax incentives marks a pivot from recent efforts to encourage the use of electric vehicles as a strategy against climate change and in pursuit of reduced emissions.

(With inputs from agencies.)