Govind Tekale
Two new bills in the Senate could make electric cars more expensive for buyers. Right now, people can get $7,500 back when they buy a new electric car. They can also get $4,000 back for buying a used one. Senate Republicans want to end these savings.
Senator John Barrasso from Wyoming introduced the first bill. “Wyoming families should not foot the bill for expensive electric cars they don’t want and can’t afford,” he said. His bill would end all electric car tax breaks just 30 days after becoming law.
But that’s not all. A second bill would add a new $1,000 fee when buying an electric car. Senator Deb Fischer from Nebraska says this money would help fix roads. Regular cars pay for road repairs through gas taxes. Since electric cars don’t use gas, they don’t pay these taxes.
“Electric cars can be much heavier than gas cars,” Fischer explained. “They cause more wear on our roads.” The $1,000 fee equals about what a regular car owner pays in gas taxes over ten years.
Detroit automakers are pushing to keep these tax credits. Many have spent billions of dollars building new electric car and battery factories. These manufacturers have invested heavily counting on these tax incentives to continue.
Currently, 39 states charge extra fees for electric cars. In New Jersey, for example, electric car owners pay $250 extra each year, which will increase by $10 per year for four years. By 2028, the fee will exceed $290. This money helps maintain roads and support public transit.
The oil and gas industry supports these bills. Records show Senator Barrasso received $781,381 from oil and gas companies between 2019 and 2024. Senator Fischer received $356,393 during the same time.
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If these bills pass, buying an electric car would cost $8,500 more than it does now – combining the loss of the $7,500 tax credit and the new $1,000 fee.
Transportation Secretary Sean Duffy agrees electric car owners should help pay for roads but says finding the right way to do this is “challenging.”
Some Republicans worry these changes could hurt their states. Eighteen Republican House members warned that ending tax breaks too soon could stop new factories from being built. These factories bring jobs and money to their communities.
The debate shows how complicated it is to switch from gas cars to electric ones. It’s not just about the cars – it’s about jobs, roads, taxes, and how we’ll pay for everything as more people switch to electric vehicles.
