Tax Break for Electric Vehicles in the Crosshairs

The chairman of the Senate Environment and Public Works Committee unveiled legislation Tuesday to end the $7,500 tax incentive for electric vehicles.

The yet-unnumbered bill comes as a United Nations report on climate change, released over the weekend, outlined dire consequences for the planet in the absence of global action to drastically reduce carbon output over the next decade.

The legislation from Sen. John Barrasso, R-Wyo., would also impose “a federal highway user fee on alternative fuel vehicles,” which would then go into the Highway Trust Fund, according to a committee summary. The fee, based on typical fuel taxes paid for similar gas-powered vehicles, would be collected with the vehicle owner’s federal tax return.