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ICYMI: Senate Finance Committee Markup on the Clean Energy for America Act a Positive Sign for EV Incentives

May 27, 2021

Washington, D.C. – Yesterday, the Senate Finance Committee advanced Chairman Ron Wyden’s (D-OR) Clean Energy for America Act. Legislation that would “overhaul the energy tax code, create jobs, and combat the climate crisis.” The Zero Emission Transportation Association (ZETA) commends the Committee’s actions, specifically investments in electric vehicles (EVs) and policies to improve the efficiency and accessibility of clean energy tax credits for all Americans.

“Simply extending the status quo will not get the job done,” Chair Wyden (D-OR) said of the clean energy incentives. Not only does it extend the EV tax credit that expired in 2013 to vehicles purchased after December 31, 2020, but also proposes a new credit for commercial EVs, a provision championed by Senator Maria Cantwell (D-WA).

“We are pleased to see bold and expansive Senate action to help drive EV adoption,” said ZETA Executive Director Joe Britton. “In particular, we are confident that the necessary changes to the 30D and 30C tax credit and special attention to medium and heavy duty electrification and commercial transportation will make a significant difference for the future of transportation electrification.”

The key tax provisions in the Clean Energy for America Act reflect a critical juncture in the legislative policies that will drive EV adoption. The bill would reform the EV tax credit known as “30D” by removing the 200,000 unit manufacturer cap on tax credits for consumers and make the consumer credit refundable starting January 1, 2022. The legislation also creates a new 30% investment tax credit for medium- and heavy-duty vehicles and all other commercial transportation (including off-road).

The bill would also expand the existing Alternative Fuel Vehicle Refueling Property Investment Tax Credit (ITC), which is known as “30C”, to meet greater charging use cases and further deploy infrastructure to serve every community’s needs. Specifically, the $30,000 cap per location is replaced with a $200,000 cap per charger. This provision was championed by Senators Carper, Burr, Stabenow, and Cortez Masto who have long been advocates of EV adoption.

These changes seek to accelerate EV adoption by removing outdated barriers for domestic manufacturers and consumers alike.

Senator Stabenow (D-MI) highlighted that “electric vehicles are part of our transportation future. The question is not when they will be built, it’s where they will be built.” Stabenow’s amendment in particular will further incentivize domestic manufacturing and create American jobs and represents a critical piece of ZETA’s policy platform advocating for 100% EV sales by 2030.

As the legislation advances to the full Senate, and eventually the House, the coalition will continue to advocate for these critical EV priorities.

Policy Platform

Learn about our six-part strategy for electrification.

About ZETA

National policies to support 100% electric vehicle sales.

The Zero Emission Transportation Association (ZETA) is a federal coalition focused on advocating for 100% EV sales. Enacting policies that drive EV adoption will create hundreds of thousands of jobs, secure American global EV manufacturing dominance, drastically improve public health, and significantly reduce carbon pollution.