Senate Republicans Propose $1000 Tax on Electric Vehicles to Fund Road Repair

The plan would also axe the $7500 tax credit currently available on many EVs.

Road and Track

BY EMMET WHITE FEB 13, 2025

For years now, electric vehicles owners in the United States have been eligible to receive tax breaks for choosing the gas-free option, with federal, state, and even local governments subsidizing anywhere from $4000–$10,000 or more of the cost of a new or used EV depending on region, make and model. However, a group of Republican members of the U.S. Senate believe the window of financial opportunity for EV owners should close sooner rather than later, according to a new piece of proposed legislation.

Introduced by Senator John Barrasso (R-WY) on Wednesday, the proposed legislation focuses on repealing the current $7500 federal tax credit on approved new EVs, killing the $4000 tax break on used EVs, ending federal investment credits for EV charging stations, and terminating credits extended to those who lease EVs. Barrasso is backed by 14 other GOP senators, including Senate Majority Leader John Thune (R-SD), who want to end the sweeping subsidies within 30 days of the bill becoming law.

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