A US lawmaker has introduced legislation that would not only bring back the U.S. federal electric vehicle tax credit, it would also double it to US$15,000.
According to H.R. 10881, known as the 21st Century Vehicle Choice Act, Democratic Representative Greg Landsman of Ohio introduced the proposal on Thursday.
More than 160 House Democrats support the bill, although the Congress.gov record does not yet list any cosponsors.
The legislation would increase both components of the new clean vehicle credit from US$3,750 to US$7,500, doubling the maximum incentive from US$7,500 (C$10,529) to US$15,000.
However, buyers would only be eligible to claim the new vehicle credit once, and the legislation would also lower the existing income limits.
For married couples filing jointly, the income cap would fall from US$300,000 to US$225,000 (C$315,855), while the limit for single filers would drop from US$150,000 to US$112,500 (C$157,928).
The bill also proposes doubling the used EV credit from US$4,000 to US$8,000, while increasing the eligible percentage of the purchase price from 30% to 60%.
Tax credits for charging infrastructure would increase from 30% to 50%, with all three incentives becoming permanent under the proposal.
“We have to make life more affordable and give folks more choices. Our bill would make electric vehicles more accessible and help families save money on gas,” Landsman said.
The proposal comes after federal EV purchase credits no longer applied to most vehicles bought after September 30, 2025.
However, the party is divided over whether to revive the EV tax credits, with Sen. John Hickenlooper saying, “We’ve got to assess how much momentum and how much benefit we got from it.” (via Politico)
Meanwhile, Canada currently offers up to C$5,000 for eligible battery-electric vehicles through its Electric Vehicle Affordability Program, although that amount will decrease to C$4,000 on January 1, 2027.
The American proposal also calls for studies examining vehicle affordability, critical minerals, and charging availability along routes used by the country’s highest gasoline consumers.
The bill has been referred to the House Ways and Means, Energy and Commerce, and Natural Resources committees.
Always get the latest - make Drive Tesla your preferred source on Google
Are you buying a Tesla? If you enjoy our content and we helped in your decision, use our referral link to get three months of Full Self-Driving (FSD).Drive Tesla uses affiliate links, which means we may earn a commission if you make a purchase through them, at no additional cost to you. Thank you for your support.
