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WASHINGTON, D.C. — U.S. Senator John Barrasso (R-WY) and Representative Jason Smith (R-MO-8) introduced legislation to end the federal electric vehicle tax credit. The Eliminate Lavish Incentives to Electric (ELITE) Vehicles Act (S. 1969) will save billions in taxpayer funds.

“The electric vehicle tax credit largely benefits the wealthiest Americans and costs taxpayers billions of dollars,” said Sen. Barrasso. “Today, the market for electric vehicles is well established. The auto industry no longer needs these pricey subsidies. It is time to pull the plug on subsidies for electric vehicles.”

“The electric vehicle tax credit is nothing more than a subsidy for the wealthy that sticks working class families with the bill. That’s why I introduced the Eliminate Lavish Incentives To Electric (ELITE) Vehicles Act to stop the taxpayer-funded slush fund for coastal elites,” said Rep. Jason Smith (MO-08).

The Manhattan Institute estimates that ending the electric vehicle tax credit would save roughly twenty billion dollars in taxpayer funds over the next decade. According to a Congressional Research Service report, 78% of electric vehicle (EV) credits are claimed by filers with an adjusted gross income of $100,000 or more, and those filers receive an even higher proportion (83%) of the amount of credits claimed.

The ELITE Vehicles Act would terminate and repeal the federal electric vehicle tax credit up to $7,500 per new electric vehicle purchased for use in the U.S.

Read the text of the legislation here.

The legislation is supported by Americans for Prosperity, Council for Citizens Against Government Waste, FreedomWorks, Heritage Action for America, and the National Taxpayers Union.