New Bill Would Bring Back U.S. EV Tax Credit, Doubled to $15K
The 21st Century Vehicle Choice Act would also increase the credit for EV charging equipment to 50% of eligible costs.
More than 160 House Democrats are backing a new bill that would restore and double the federal electric vehicle tax credit, aiming to make it permanent after its elimination last year.
What Happened
Rep. Greg Landsman (D-OH) introduced the 21st Century Vehicle Choice Act on October 22, just over a year after the $7,500 federal EV tax credit ended under President Trump’s One Big Beautiful Bill Act. The proposed legislation would double the credit for new EVs to $15,000 and increase the credit for used EVs to up to $8,000. Additionally, the bill raises the tax credit for EV charging equipment from 30% to 50% of eligible costs.
The structure of the new EV credit would mirror the Inflation Reduction Act of 2022, splitting the total amount into two halves tied to battery components and critical mineral sourcing. Only vehicles meeting both requirements would qualify for the full $15,000. Income limits for new EV buyers would be set at $225,000 for married couples filing jointly, $169,000 for heads of household, and $112,500 for single filers.
Why It Matters
If enacted, a permanent $15,000 credit could significantly alter consumer incentives, potentially helping EV-only manufacturers like Tesla and Rivian while encouraging legacy automakers such as Ford and GM to reconsider their EV production plans. Proponents, including the group Coltura, argue that high-mileage drivers could save over $4,000 annually by switching to electric vehicles. However, the bill faces significant hurdles; it has only been referred to House committees and must pass both chambers and receive presidential approval. Critics, including the Trump administration, have previously labeled such credits as wasteful spending.
The Bottom Line
While the bill offers a substantial financial incentive for EV buyers and charging infrastructure, its path to law remains uncertain. Landsman introduced a similar bill in October 2024 that failed to advance, and current political dynamics suggest the proposal requires broader support beyond House Democrats to become effective.
