Senate Republicans Propose Ending EV Tax Credits and Adding $1,000 Fee

Two bills introduced by GOP senators aim to repeal federal EV incentives and impose a one-time tax to address road maintenance funding.

The Eliminating Lavish Incentives to Electric (ELITE) Vehicles Act, introduced by Sen. John Barrasso, seeks to end the $7,500 tax credit for new EVs, the $4,000 credit for used EVs, and incentives for EV charging stations and leases.
The Fair Sharing of Highways and Roads for Electric Vehicles (Fair SHARE) Act, sponsored by Sen. Deb Fischer, proposes a $1,000 one-time fee on new EV purchases to offset lost federal gas tax revenue.
Proponents of the bills argue that EVs, which avoid gas taxes and are often heavier than traditional vehicles, contribute to increased road wear without paying into the Highway Trust Fund.
Critics warn that eliminating EV tax credits could hinder the growth of the U.S. electric vehicle market and undermine investments in clean energy and domestic manufacturing spurred by the Inflation Reduction Act.
Both bills align with President Trump's broader rollback of Biden-era green energy policies, but face potential opposition from lawmakers in states benefiting from EV-related economic investments.