Restoring Vehicle Market Freedom Act of 2025

2/7/2025, 4:38 AM

Restoring Vehicle Market Freedom Act of 2025

This bill repeals federal tax credits for the purchase of certain clean vehicles (generally electric vehicles, plug-in hybrid vehicles, and fuel cell vehicles) and certain vehicle refueling property.

Specifically, the bill repeals the federal tax credits for

  • the purchase of a qualified used clean vehicle (tax credit of up to $4,000 for the purchase of a previously-owned clean vehicle before 2033),
  • the purchase of a qualified new clean vehicle (tax credit of up to $7,500 for the purchase of a new clean vehicle before 2033),
  • the purchase of a qualified commercial clean vehicle (business tax credit of up to $40,000 for the purchase of a commercial clean vehicle before 2033), and
  • alternative fuel vehicle refueling property (tax credit of up to $1,000 for individuals or up to $100,000 for businesses for the installation of property before 2033 used to store or dispense clean-burning fuel or to recharge electric vehicles).
Bill 119 HR 312, also known as the "Alternative Fuel Vehicle Tax Credit Repeal Act," aims to make changes to the Internal Revenue Code of 1986 by repealing certain tax credits related to alternative fuel vehicles. The bill specifically targets credits that have been provided to individuals and businesses who purchase or use vehicles that run on alternative fuels, such as electric, hydrogen, or natural gas.

The bill seeks to eliminate these tax credits in order to simplify the tax code and reduce government spending on incentives for alternative fuel vehicles. Supporters of the bill argue that these credits are no longer necessary as the market for alternative fuel vehicles has grown and become more competitive in recent years.

Opponents of the bill, however, argue that repealing these tax credits could hinder the growth of the alternative fuel vehicle industry and discourage individuals and businesses from investing in cleaner, more sustainable transportation options. They also argue that these credits have helped to reduce greenhouse gas emissions and promote energy independence. Overall, the passage of Bill 119 HR 312 would have significant implications for the alternative fuel vehicle industry and could impact the choices that individuals and businesses make when it comes to purchasing vehicles. It is important for lawmakers to carefully consider the potential consequences of repealing these tax credits before making a decision on the bill.
Congress
119
Number
HR - 312
Introduced on
2025-01-09
# Amendments
0
Sponsors
+5
Cosponsors
+5

Variations and Revisions

1/9/2025
Text
PDF
XML

Status of Legislation

Bill Introduced
Introduced to House
House to Vote
Introduced to Senate
Senate to Vote

Purpose and Summary

Restoring Vehicle Market Freedom Act of 2025

This bill repeals federal tax credits for the purchase of certain clean vehicles (generally electric vehicles, plug-in hybrid vehicles, and fuel cell vehicles) and certain vehicle refueling property.

Specifically, the bill repeals the federal tax credits for

  • the purchase of a qualified used clean vehicle (tax credit of up to $4,000 for the purchase of a previously-owned clean vehicle before 2033),
  • the purchase of a qualified new clean vehicle (tax credit of up to $7,500 for the purchase of a new clean vehicle before 2033),
  • the purchase of a qualified commercial clean vehicle (business tax credit of up to $40,000 for the purchase of a commercial clean vehicle before 2033), and
  • alternative fuel vehicle refueling property (tax credit of up to $1,000 for individuals or up to $100,000 for businesses for the installation of property before 2033 used to store or dispense clean-burning fuel or to recharge electric vehicles).
Bill 119 HR 312, also known as the "Alternative Fuel Vehicle Tax Credit Repeal Act," aims to make changes to the Internal Revenue Code of 1986 by repealing certain tax credits related to alternative fuel vehicles. The bill specifically targets credits that have been provided to individuals and businesses who purchase or use vehicles that run on alternative fuels, such as electric, hydrogen, or natural gas.

The bill seeks to eliminate these tax credits in order to simplify the tax code and reduce government spending on incentives for alternative fuel vehicles. Supporters of the bill argue that these credits are no longer necessary as the market for alternative fuel vehicles has grown and become more competitive in recent years.

Opponents of the bill, however, argue that repealing these tax credits could hinder the growth of the alternative fuel vehicle industry and discourage individuals and businesses from investing in cleaner, more sustainable transportation options. They also argue that these credits have helped to reduce greenhouse gas emissions and promote energy independence. Overall, the passage of Bill 119 HR 312 would have significant implications for the alternative fuel vehicle industry and could impact the choices that individuals and businesses make when it comes to purchasing vehicles. It is important for lawmakers to carefully consider the potential consequences of repealing these tax credits before making a decision on the bill.
Alternative Names
Official Title as IntroducedTo amend the Internal Revenue Code of 1986 to repeal certain credits relating to alternative fuel vehicles.

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Member:  
Scott Perry
Committee:  
Ways and Means

Recent Activity

Latest Summary3/25/2025

Restoring Vehicle Market Freedom Act of 2025

This bill repeals federal tax credits for the purchase of certain clean vehicles (generally electric vehicles, plug-in hybrid vehicles, and fuel cell vehicles) and certain vehicle...

Latest Action1/9/2025
Referred to the House Committee on Ways and Means.