Federal Electric Vehicle Tax Credit Proposed

Vermont U.S. Rep. Peter Welch recently announced legislation that would increase the size of a tax credit for purchasing hybrid and electric vehicles (EVs). The change, according to Rep. Welch, would allow those from middle-income households to afford EVs.

The Electric Vehicle Act would increase an available tax credit to up to $10,000 for EVs, a savings which buyers would see at the time of sale. Consumers would see the tax credit taken off at the point of sale rather than having to wait until filing their tax returns. There would be a lower credit for hybrids. Current tax credits range from $2,500 to $7,500. The bill also allows the credit to be assigned to the dealer who has the capacity take advantage of the full credit.

"One of the biggest contributors to climate change in Vermont and across the country is vehicle emissions," said Rep. Welch during the press conference. "It is essential that we transition to cleaner, more efficient transportation like electric vehicles. The battery life and fuel efficiency of electric vehicles are steadily improving making them more accessible and practical to drive. This legislation will make them more affordable while saving Vermonters money at the gas pump and reducing their environmental footprint.”

Rep. Welch plans on introducing the legislation when he returns to Washington, D.C.