Exclusive–Mike Braun Proposes to Rein in Electric Vehicle Tax Credit for Wealthy Elites

Sen. Mike Braun (R-IN) plans to introduce legislation on Tuesday that would rein in the federal electric vehicle tax credit that primarily benefits wealthy Americans, Breitbart News has learned exclusively.

Braun, a populist Republican, plans to offer two modifications to Sen. Lisa Murkowski (R-AK) and Joe Manchin’s (D-WV) American Energy Innovation Act that would eliminate the federal electric vehicle tax credit for wealthy families and vehicles that cost over $50,000.

Braun said that the government can still promote vehicles to lower the country’s carbon footprint; however, the electric vehicle tax credit should not incentivize the wealthiest Americans to purchase luxury vehicles.

“As co-founder of the Senate Climate Solutions Caucus, I know we need to promote vehicles that reduce our carbon footprint, but it doesn’t need to be in the form of tax breaks for the wealthy and their luxury vehicles,” Braun said in a statement.

The Ending the Electric Vehicle Entitle for the Wealthy Act will eliminate the federal electric vehicle tax credit for joint tax returns over $326,600, and individual returns over $163,000.

The Affordable Electric Vehicle Credit Act of 2020 will limit the electric vehicle tax credit for vehicles that cost less than $45,000. Under this proposal, the following electric cars would still be eligible for the tax credit, including the BMW i3, Chevrolet Bolt EV, Hyundai Ioniq Electric, Hyundai Kona Electric, Kia Niro EV, Mini Cooper SE, Nissan Leaf, Nissan Leaf Plus, Tesla Model 3, Tesla Model Y, and the Volkswagon E-Golf.

The federal electric vehicle tax credit has disproportionately benefited the wealthy. For instance, 78 percent of Americans that claimed the federal electric vehicle tax credit had an adjusted annual gross income over $100,000, and seven percent had an annual income of over one million dollars.

Means-testing the federal electric tax credit could work to make electric vehicles more affordable for Americans across the country and reduce government spending.

The Joint Committee on Taxation (JCT) projects that the federal government will spend $7.5 billion between 2018 and 2022 on the federal electric vehicle tax credit.

The electric vehicle tax credit has expanded American adoption of the tax credit; however, electric vehicles remain prohibitively expensive for many Americans.

Braun said that his two proposals should serve as a win-win for lawmakers who want to protect the environment while eliminating tax credits for the wealthy.

“With Bernie Sanders on pace to secure the Democrat nomination, these two bills should be a slam-dunk for legislators who want to protect the environment while limiting tax breaks for the super-wealthy,” Braun said.