Welch Unveils Tax Incentives to Make Electric Vehicles More Affordable and Accessible
BURLINGTON, Vt. – This morning at Burlington’s City Market electric vehicle charging station on Flynn Avenue, Rep. Peter Welch (D-Vt.) unveiled legislation he authored to make electric vehicles more affordable, easier to purchase, and easier to charge.
“Transportation is the single largest contributor to greenhouse emissions in the United States,” said Welch. “It is urgent that we transition to cleaner, more efficient modes of transportation. My legislation will make electric vehicles and their charging stations more affordable, while saving Vermonters money at the gas pump and reducing their environmental footprint.”
Currently, a federal tax credit of up to $7,500 is available for buyers of electric vehicles. However, the number of credits is capped at 200,000 vehicles for each manufacturer. That cap is expected to be hit by manufacturers as early as this year, rendering the credit unavailable to buyers.
Welch’s legislation makes three important changes to the credit:
First, it eliminates the per manufacturer cap, allowing manufacturers and dealers to offer the credit to an unlimited number of buyers for the next ten years.
Second, it allows buyers to receive the credit immediately at the point of sale rather than having to wait until they file their annual income tax return as required under current law.
Finally, the legislation provides a tax credit to purchasers of electric vehicle charging stations to incentivize the buildout of this important infrastructure around the country.
Welch was joined at the press conference by Marilyn Miller, Executive Director of the Vermont Vehicle and Automotive Distributors Association (VADA), Dave Roberts, Coordinator of Drive Electric Vermont, Steve Dinco, Sales Manager at Shearer GM, and John Tashiro, General Manager of City Market.
“Vermont’s auto dealers have been national leaders in the promotion and sale of electric vehicles,” said Miller. “This legislation will help our dealers make electric vehicles an affordable option for more Vermonters, by reducing their upfront costs. We appreciate the leadership from Congressman Welch to support this growing market of clean and affordable transportation.”
Welch’s legislation, (H.R. 6274) is cosponsored in the House by Reps. Jared Huffman (D-Calif.) and Jacky Rosen (D-Nev.). Sen. Jeff Merkley (D-Ore.) is expected to introduce companion legislation in the Senate.