No Subsidies for Government Purchases of Electric Vehicles Act This bill disallows a tax credit for qualified plug-in electric drive motor vehicles that are sold to the federal government or a state government.
Impact
The implementation of HB 326 would lead to changes in how electric vehicle purchases are incentivized at the federal level. It dictates that any seller who sells an electric vehicle to a government entity would not be allowed to take advantage of tax credits, thereby potentially increasing the cost of electric vehicle acquisitions for government use. This could influence decisions made by public agencies regarding the procurement of electric vehicles, possibly leading them to reconsider the viability of electric vehicles within their fleets.
Summary
House Bill 326, titled the 'No Subsidies for Government Purchases of Electric Vehicles Act', seeks to amend the Internal Revenue Code of 1986 by prohibiting sellers of electric vehicles from claiming tax credits if the vehicles are sold to federal or state governments. The intent of the bill is to curb what supporters consider unnecessary subsidies provided to government entities when they purchase electric vehicles. By preventing these entities from benefiting from tax credits traditionally available to private purchasers, the bill aims to redirect subsidies towards encouraging consumer purchases rather than government acquisitions.
Contention
There are notable points of contention surrounding this bill. Proponents argue that government purchases should not benefit from the same subsidies intended to promote consumer adoption of electric vehicles. They believe that this would foster a more equitable tax system and avoid situations where taxpayers are effectively subsidizing government vehicle purchases. Opponents, however, may argue that this bill could limit the ability of state and federal governments to lead by example in the transition to greener technologies and could hinder efforts aimed at reducing vehicular emissions by making electric vehicles less accessible for public entities.
Close the Double Subsidy Loophole for Electric Vehicles Act This bill reduces the allowable amount of the tax credit for a new qualified plug-in electric drive motor vehicle by any subsidy made available by the state in which the vehicle is registered and was placed in service.
To Prohibit The Procurement By A Governmental Entity Of An Electric Vehicle Or A Component Of An Electric Vehicle That Was Manufactured In Whole Or In Part Using Forced Labor.