chl
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Plug-in America posted this story today. It seems some lawmakers are coming for the tax credits if control of congress and/or white house changes...
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Finalized EV tax credit guidance
After this comprehensive rulemaking process, the recently finalized rules outline how the tax credit can save consumers up to $7,500 on a new EV and up to $4,000 on a used EV. The rules specify that the tax credits are transferrable, meaning they can be redeemed at the time of purchase, allowing consumers to use them as a down payment, lower their monthly payments, and enable lower-income consumers to access the money even if they don’t pay much in taxes.
Despite this due diligence, some members of Congress who aren’t supportive of clean transportation (and are likely funded by the oil and gas industry) are not happy with the final rules for the EV tax credits. Recently, a bill has been introduced in Congress (H.J.Res.148/S.J.Res.87) to use the Congressional Review Act (CRA) to roll back the final rules on the EV tax credits.
The Congressional Review Act
A CRA is essentially a statement of disapproval from Congress. First enacted in 1996, it is a tool that gives Congress procedures to introduce legislation to overturn agency regulations. Rules can only be overturned if both houses of Congress agree on a joint resolution of disapproval by a simple majority vote. If the president signs the CRA or Congress successfully overrides a presidential veto, the regulations will be voided.
President Biden is almost certain to veto the CRA, and it is unlikely that two-thirds of each chamber will approve this resolution of disapproval. That said, a joint resolution of disapproval sends the message that the Department of Treasury’s rulemaking is not the law’s intent and could open the door to future lawsuits.
What a CRA would mean for the clean vehicle tax credits?
If the resolution succeeds or Congress successfully overrides a presidential veto, the finalized rules would go out of effect immediately and “shall be treated as though such rule had never taken effect.” Additionally, the Internal Revenue Service and Treasury would be prohibited from reissuing a rule in “substantially the same form.” Since the provisions of the tax credits are statutory, meaning they are written into law, the tax credits themselves wouldn’t go away. Still, the clarity provided by the final guidance would be gone – creating significant confusion.
The passage of a CRA would roll back agency regulations on the clean vehicle tax credits, which, because of their complexity, would make the proposal and finalization of any future guidance implausible. Without final guidance, automakers would not be able to determine if their vehicles meet the requirements for the credit. Dealers would also not know which vehicles qualify for the credit. Ultimately, this lack of guidance would lead to consumer confusion and the inability to access the EV tax credits. Additionally, this would eliminate a dealership’s ability to offer the credits as upfront payments, which ensures that all drivers, regardless of tax liability, can access the full value of the incentive.
https://pluginamerica.org/the-congressional-review-act-and-its-potential-impact-on-ev-tax-credits/
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Finalized EV tax credit guidance
After this comprehensive rulemaking process, the recently finalized rules outline how the tax credit can save consumers up to $7,500 on a new EV and up to $4,000 on a used EV. The rules specify that the tax credits are transferrable, meaning they can be redeemed at the time of purchase, allowing consumers to use them as a down payment, lower their monthly payments, and enable lower-income consumers to access the money even if they don’t pay much in taxes.
Despite this due diligence, some members of Congress who aren’t supportive of clean transportation (and are likely funded by the oil and gas industry) are not happy with the final rules for the EV tax credits. Recently, a bill has been introduced in Congress (H.J.Res.148/S.J.Res.87) to use the Congressional Review Act (CRA) to roll back the final rules on the EV tax credits.
The Congressional Review Act
A CRA is essentially a statement of disapproval from Congress. First enacted in 1996, it is a tool that gives Congress procedures to introduce legislation to overturn agency regulations. Rules can only be overturned if both houses of Congress agree on a joint resolution of disapproval by a simple majority vote. If the president signs the CRA or Congress successfully overrides a presidential veto, the regulations will be voided.
President Biden is almost certain to veto the CRA, and it is unlikely that two-thirds of each chamber will approve this resolution of disapproval. That said, a joint resolution of disapproval sends the message that the Department of Treasury’s rulemaking is not the law’s intent and could open the door to future lawsuits.
What a CRA would mean for the clean vehicle tax credits?
If the resolution succeeds or Congress successfully overrides a presidential veto, the finalized rules would go out of effect immediately and “shall be treated as though such rule had never taken effect.” Additionally, the Internal Revenue Service and Treasury would be prohibited from reissuing a rule in “substantially the same form.” Since the provisions of the tax credits are statutory, meaning they are written into law, the tax credits themselves wouldn’t go away. Still, the clarity provided by the final guidance would be gone – creating significant confusion.
The passage of a CRA would roll back agency regulations on the clean vehicle tax credits, which, because of their complexity, would make the proposal and finalization of any future guidance implausible. Without final guidance, automakers would not be able to determine if their vehicles meet the requirements for the credit. Dealers would also not know which vehicles qualify for the credit. Ultimately, this lack of guidance would lead to consumer confusion and the inability to access the EV tax credits. Additionally, this would eliminate a dealership’s ability to offer the credits as upfront payments, which ensures that all drivers, regardless of tax liability, can access the full value of the incentive.
https://pluginamerica.org/the-congressional-review-act-and-its-potential-impact-on-ev-tax-credits/
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