WASHINGTON, D.C. — Today, U.S. Senator John Barrasso (R-WY), chairman of the Senate Committee on Environment and Public Works (EPW), and Representative Jason Smith (R-MO-8) introduced the Fairness for Every Driver Act. This legislation will save billions in taxpayer funds by ending the federal electric vehicle tax credits and strengthen the Highway Trust Fund by ensuring that alternative fuel vehicle drivers pay into it. The legislation is cosponsored by Sens. Mike Enzi (R-WY) and Pat Roberts (R-KS).

“It’s time to end the electric vehicle tax credit,” said Barrasso. “The Fairness for Every Driver Act will save taxpayers billions of dollars and help keep our roads safe. The legislation levels the playing field for all cars across America. Gas, electric, and alternative fuel vehicles all use the same roads and put the same amount of wear and tear on those roads. Every driver should contribute to maintain America’s highways.”

“Rural America’s taxpayers shouldn’t be footing the bill for others to drive high-end electric vehicles,” said Smith. “The Electric Vehicle Tax Credit has benefited the wealthy at the expense of everyday Americans just trying to get by. It’s time to end this wasteful subsidy and help rebuild our nation’s infrastructure by ensuring every driver contributes to improving the roads we all use.”

The Manhattan Institute estimates that ending the electric vehicle tax credit would save roughly twenty billion dollars in taxpayer funds over the next decade. The Fairness for Every Driver Act will require a federal highway user fee on alternative fuel vehicles that will generate billions for the Highway Trust Fund over the next 10 years.

Specifically, the legislation 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.;
  • Impose a federal highway user fee on alternative fuel vehicles;
  • Require that all user fees be collected with the user’s tax return; and
  • Ensure the transfer of federal highway user fees into the Highway Trust Fund.

Read the text of the legislation here.

Background Information:

On Oct. 8, 2018, Barrasso first introduced the Fairness for Every Driver Act during the 115th Congress.

On Dec. 12, 2018, Smith introduced the Fairness for Every Driver Act in the House of Representatives.

 

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