Doubles Tax Credits for Clean Vehicles
21st Century Vehicle Choice Act
Would double the tax credits for new and used clean vehicles and make them permanent. Buyers would get one new-vehicle credit each year, with lower income limits.
Supporters say
Clean energy and auto groups would likely say bigger credits make electric and hybrid vehicles more affordable. Permanent credits give buyers and car makers more certainty.
Critics say
Some taxpayer and budget groups would likely say the larger credits cost more and favor higher-income buyers. They may also argue that the income limits are too generous.
Why it matters
Buyers of new or used clean vehicles could get larger tax credits, while higher-income buyers would qualify at lower income limits. The Commerce Department would also have to report on vehicle choices and prices.
What it does
- Raises the new clean vehicle tax credit from $3,750 to $7,500
- Raises the used clean vehicle credit from $4,000 to $8,000
- Raises the used vehicle credit's share of price from 30 percent to 60 percent
- Raises the home refueling equipment credit from 30 percent to 50 percent
- Limits the new vehicle credit to one vehicle per taxpayer each year
Status
Latest action (2026-10-22): Referred to the Committee on Ways and Means, and in addition to the Committees on Energy and Commerce, and Natural Resources, for a period to be subsequently determined by the Speaker, in each case for consideration of such provisions as fall within the jurisdiction of the committee concerned.