A bill has been introduced in Congress to use the Congressional Review Act (CRA) to dismantle the regulations on consumer Clean Vehicle Credits that were recently finalized by the Internal Revenue Service (IRS) and Department of the Treasury (Treasury). The EVA urges members of Congress to reject the CRA Resolution (H.J.Res.148/S.J.Res.87) and any other effort seeking to roll back final regulations on 30D and 25E tax credits for purchasing new and previously owned zero-emission vehicles (ZEVs).

The IRS & Treasury’s new regulations were finalized on May 3 and published in the Federal Register on May 6. These standards provide greater clarity for automakers manufacturing ZEVs, dealers and sellers administering the credits, and consumers seeking to utilize them.

Clean Vehicle Tax Credits allow buyers to save up to $7,500 on a purchase of a new vehicle and up to $4,000 on a purchase of a used vehicle. The tax credits are available instantly at the point of sale as “cash on the hood.” According to the Treasury, drivers have saved more than $1 billion using these tax credits in 2024 so far.

The CRA allows Congress to roll back agency rulemaking by winning a simple majority vote in both chambers. CRA votes are subject to minimal floor debate, and cannot be filibustered. CRA resolutions can be vetoed by the President, but this veto can be overridden by a two-thirds majority in the Senate.

In response to this latest attack on consumer savings and climate progress, EVA president Elaine Borseth released the following statement:

“Clean Vehicle Tax Credits benefit drivers, automakers, public health, and the planet — they’re a win-win-win-win. Dismantling this program benefits no one but the oil and gas industry. We can’t afford to delay progress on our clean transportation goals for the sake of polluter profits.”

The 30D and 25E provisions of the Inflation Reduction Act (IRA) allow qualifying buyers to save up to $7,500 on a qualifying purchase of a qualifying new vehicle, and up to $4,000 on a qualifying purchase of a used vehicle, respectively. Eligibility is based on household income, transaction price, gross vehicle weight, battery capacity, assembly location, and sourcing requirements for batteries and minerals.

Clean Vehicle Tax Credits aren’t a brand-new policy — in fact, they have been available at the federal level since 2008. The IRA significantly changed the existing 30D credit to ensure its long-term availability and usefulness, from 2022 through 2032. It also included the first-ever federal credit for consumers purchasing used EVs (25E). Tell your representatives to protect our climate progress voting NO!