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Senate backs non-binding measure calling for limits on EV tax credits

August 11, 2021
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WASHINGTON — The U.S. Senate voted 51-48 for a non-binding amendment to President Joe Biden’s $3.5 trillion budget resolution aimed at limiting who can get a tax break for buying an electric car or truck and which vehicles qualify — potentially shaping the coming debate as Democrats prepare to expand the tax credit.

Republican Senator Deb Fischer of Nebraska proposed prohibiting people making more than $100,000 a year from claiming EV tax credits and to end tax credits for EVs that cost more than $40,000 — levels that would exclude many of the EVs on the market or planned to come to the market in the next few years, including those promoted by President Joe Biden recently at the White House.

Senator Debbie Stabenow of Michigan argued vociferously against the amendment, calling it “anti-pickup truck.” But three Democrats voted for it — Joe Manchin of West Virginia, Mark Kelly of Arizona and Kyrsten Sinema of Arizona.

One Republican opposed the amendment — Marsha Blackburn of Tennessee, a state that includes plants making EVs and batteries.

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