The 429-page GOP tax reform bill will end the $7,500 tax credit meant to encourage Americans to purchase emission-free electric vehicles and increases taxes on alternative energy sources like wind and solar.
The electric vehicle tax credit has been credited with reducing the price of emission-free cars for consumers and helping the American electric vehicle industry grow.
“Electrification for vehicles is extremely important for the future of the auto industry, particularly given the fact that as we move towards autonomous, self-driving vehicles, those vehicles will be powered by electric,” said Sen. Gary Peters (D-Mich.), who represents America’s automobile manufacturing hub, on Wednesday.
“That tax credit is really important for moving this technology forward.”
The legislation also reforms several energy-related tax credits as a way to help pay for the Republican bill.
The Hill notes:
It would repeal an inflation increase for renewable energy production tax credits, a move that would increase taxes for power sources like wind, solar, biomass, geothermal, hydropower and others. That provision would raise $12.3 billion in new revenue over ten years.
The bill also aligns the expiration date for investment tax credits affecting the renewables industry and extends a tax credit for residential energy efficiency programs. The two proposals would cost the government a combined $2.3 billion over a decade. Republicans also seek to end two small tax credits for the oil industry, reducing government revenue slightly, and extend a nuclear industry production tax credit to newly built power plants beginning in 2021.