FI showroom red and grey logo
MenuMENU
SearchSEARCH

Democrats Signal Defeat on EV Tax Credit

The federal spending bill being negotiated by House and Senate leaders is not likely to include an extension of the $7,500 tax credit for buyers of electric vehicles.

Tariq Kamal
Tariq KamalFormer Associate Publisher
Read Tariq's Posts
December 17, 2019
Democrats Signal Defeat on EV Tax Credit

Sen. Debbie Stabenow (D-Mich.) told Bloomberg the federal electric vehicle tax credit would be difficult to extend in the face of “extreme resistance” from the Trump administration.

Photo courtesy Sen. Debbie Stabenow via Flickr

2 min to read


WASHINGTON — An Obama era tax credit for buyers and lessees of new electric vehicles will not likely be extended as part of a new federal spending bill, Reuters reports. A campaign led by manufacturers and Democratic legislators failed to sway Republican leaders, including President Donald Trump, who have denounced the credit as a tax break for wealthy car buyers.

“There has been extreme resistance from the president. It’s going to be difficult,” Sen. Debbie Stabenow (D-Mich.) told Bloomberg this week.

Ad Loading...

Read: Trump Budget Kills EV Tax Credit

The $7,500 income tax deduction was introduced in 2009 and applied to the first 200,000 electric units built by any manufacturer in the U.S. market. The nation’s EV leaders, General Motors and Tesla, exceeded that mark in 2018 but have since benefited from credits of diminishing amounts. The current federal tax credit of $1,875 for GM and Tesla units will expire Dec. 31 and March 1, respectively.

Opponents of the extension frequently referenced a 2014 IRS report that found 79% of electric vehicle tax credits went to households earning $100,000 or more. Only 1% were claimed by households earning less than $50,000.

Proponents countered the IRS figures set aside the fact that dealers were able to apply the credit to leases, which accounted for a majority of the EV market as recently as 2017, according to Bloomberg Intelligence.

“The tax credit quickly became another example of the government’s solicitousness for those who are comfortable and who are skillful in defense of their comforts.”

Ad Loading...

Columnist George Will summarized the conservative viewpoint in an April column for The Washington Post.

“The tax credit quickly became another example of the government’s solicitousness for those who are comfortable and who are skillful in defense of their comforts,” he wrote. “Today, demand for electric cars is still insufficient to produce manufacturing economies of scale (after a decade of production, moral exhortations and subsidies, electric cars are a fraction of 1% of all vehicle sales), and batteries are expensive.”

Read: EVs Cost Even More Than You Think

Originally posted on Auto Dealer Today

More Showroom

outside shot of two trucks in front of a body of water with a cloudy sky
Showroomby Lauren LawrenceJuly 29, 2026

Used Market Stabilizes

The Carfax Used Car Index noted a major drop in used-vehicle price increases in July after several months of hikes.

Read More →
Twilight of white hybrid car.
Showroomby Lauren LawrenceJuly 22, 2026

California Hybrids Reach State Record

The Golden State still leads the country in electric-vehicle registrations, but much like the rest of the U.S. its hybrid market share is up while full electrics stabilize after a dramatic first-quarter dip.

Read More →
White meeting room in car dealership with rims displayed on wall and projected screen
Showroomby Hannah MitchellJuly 22, 2026

My Mercedes in the U.S.

The German brand debuted its studio dealership concept for the first time in the states in Los Angeles, tapping Americans’ penchant for creative distinctions.

Read More →
Ad Loading...
Photo of parked cars of various types for sale on a lot
Showroomby Hannah MitchellJuly 20, 2026

Used Sales Hit Summer Drag

The vacation season, combined with high prices, has dented deliveries and added to inventories, though supply is still slim enough to keep listings elevated.

Read More →
desert road with cars driving away, Rebates Incoming with red star graphic, F&I and Showroom logo
Showroomby Lauren LawrenceJuly 15, 2026

California Launches EV Rebate Program

Participating automakers are matching the state's $13.5 million investment in new electric-vehicle rebates scheduled to take effect later this summer.

Read More →
Aerial shot of a car dealership
Showroomby Hannah MitchellJuly 13, 2026

OEM Poll Sees Industry Evolution

Kerrigan Advisors’ survey of automakers finds that tariffs, technology, network tightening and other factors are poised to reshape auto retail.

Read More →
Ad Loading...
Photo of cars lined up on lot
ShowroomJuly 10, 2026

The Trade-In Paradox

Retailing older cars with confidence in today’s market is a matter of establishing and following a clear process that can turn greater profit for auto dealers as they aim to meet used-unit hunger.

Read More →
Phot of a dark Kia vehicle interior with steering part of steering wheel and dashboard
Showroomby Hannah MitchellJune 29, 2026

Focus on Vehicle Cabins

The market for interior materials will grow in coming years as automakers look to meet consumer demand while staying competitive with changeups to sourcing and included features.

Read More →
Photo of multiple new SUVs on a car dealership lot
Showroomby Hannah MitchellJune 22, 2026

State Follows Federal Warning on Auto Ads

The Massachusetts attorney general cautioned the state’s automotive dealers to be upfront with the consuming public about their vehicle prices or risk punishment.

Read More →
Ad Loading...
Map of Europe next to back of EV car.
Showroomby Lauren LawrenceJune 22, 2026

European EV Market Hits Record

Seven out of the top 10 electric vehicles sold so far in 2026 in Europe are by European brands, and automakers are seeing the power train fill up their order books.

Read More →