Consumer Reports – the nonprofit consumer research, testing, and advocacy organization – urges you to oppose any efforts to eliminate clean vehicle tax credits, including through the Congressional Review Act resolution H. J. Res. 148/S. J. Res. 87. The Internal Revenue Service (IRS) and Department of the Treasury (Treasury) recently finalized regulations implementing the tax credits at sections 30D and 25E of the Internal Revenue Code, which are for purchasing new and used zero-emission vehicles, respectively.
The Inflation Reduction Act (IRA) enacted the 30D and 25E tax credits to help consumers save money when purchasing cleaner vehicles. According to a nationally representative survey of 9,030 U.S. adults conducted in June and July 2023 by Consumer Reports, 48% of Americans said that tax rebates or discounts at the time of purchase would encourage them to purchase an electric vehicle (EV). Importantly, the 25E used vehicle tax credit improves access to EVs for lower- and moderate-income earners.
Consumer Reports recognizes that there are always ways to improve consumers’ experience when they are shopping for a new or used electric vehicle, and continuing education for both dealers and consumers around these incentives remains critical. However, Congress must not take a scorched-earth approach by eliminating clean vehicle credits. Rather than roll back these provisions, Congress should look to further simplify the process for consumers, such as by increasing awareness of the tax incentives and improving communication between the government and auto dealers.
Read the full letter here.