A Michigan group is speaking out after a top congressional leader's comment that lawmakers will most likely scrap the $7,500 federal tax credit for buying electric vehicles.
Ending the tax credit could deal a major blow to both the EV market and the country's clean-energy goals. Michigan automakers and suppliers have pumped more than $30 billion into the state's EV industry since 2020.
Jane McCurry, executive director of Clean Fuels Michigan, said her group joined several local and national nonprofits in signing a letter to the U.S. House Transportation Committee in support of the EV tax credits.
"Demonstrating that it's not just industry, not just individuals," she said, "but large nonprofits and advocacy groups that really care about continuing to show support for the clean mobility transition."
Despite growing Republican support for EV tax credits, some GOP senators have introduced the ELITE Vehicles Act. It would eliminate the $7,500 credit, a $4,000 credit for buying used EVs, and charging-station incentives. The senators have argued these are luxury cars and that taxpayers shouldn't foot the bill for incentives.
McCurry said it isn't just about cutting incentives. She said there are also new disincentives being pushed in Lansing and Washington, D.C. - including a proposal to increase the gas tax from 31 cents to 51 cents, which would hike EV fees.
"Because of the way that the EV registration fee in Michigan is designed, that would increase our EV registration fee by $100," she said, "and that would make Michigan's EV registration tax the highest in the country."
McCurry said her group, along with 70 companies, is working to bring back the Competitive Fuels Act in Michigan. It would reward cleaner, more innovative fuels based on how environmentally friendly they are. By 2030, hybrid or electric vehicles will be more than half of all vehicle sales in Michigan, according to the state.
