WASHINGTON, D.C. — U.S. Senator John Barrasso (R-WY), chairman of the Senate Committee on Environment and Public Works (EPW), 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 electric vehicle tax credit largely benefits the wealthiest Americans and costs taxpayers billions of dollars,” said Barrasso. “My legislation levels the playing field for all drivers across America. Gas, electric, and alternative fuel vehicles use the same roads. All should contribute to maintain them. My bill supports the Highway Trust Fund by making sure all drivers pay into the account that improves America’s roads.”
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.