Overview
Title
To amend the Internal Revenue Code of 1986 to repeal the credit for new clean vehicles, and for other purposes.
ELI5 AI
The ELITE Vehicles Act is a plan to stop giving people extra money back from taxes when they buy new electric cars or build places to charge them, which might make fewer people want to use clean cars.
Summary AI
H. R. 1367, known as the "Eliminate Lavish Incentives To Electric Vehicles Act" or the "ELITE Vehicles Act," proposes changes to the Internal Revenue Code of 1986 by removing tax credits for different types of clean vehicles. This includes repealing credits for new, previously-owned, and qualified commercial clean vehicles, along with ending support for electric vehicle recharging infrastructure from the alternative fuel vehicle credit. The bill specifies that these changes will take effect 30 days after its enactment.
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Bill Statistics
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AnalysisAI
General Summary of the Bill
The proposed legislation, H. R. 1367, titled the "Eliminate Lavish Incentives To Electric Vehicles Act" or the "ELITE Vehicles Act," seeks to amend the Internal Revenue Code of 1986 by repealing several tax credits associated with clean vehicles. These repeals include the credits for new clean vehicles, previously-owned clean vehicles, qualified commercial clean vehicles, and electric vehicle recharging property. The bill sets forth that the changes will become effective 30 days after the Act is enacted, impacting purchases and contracts entered into after that date.
Summary of Significant Issues
The central issues presented by this bill revolve around the potential negative impact on the adoption of clean vehicles and the development of electric vehicle infrastructure. The repeal of tax credits and incentives may lead to a reduction in the attractiveness of purchasing electric and clean vehicles, which could adversely affect environmental goals aimed at reducing greenhouse gas emissions. Additionally, the exclusion of electric vehicle recharging property from certain tax credits might impede the growth of electric vehicle infrastructure, thereby affecting consumer choices and market growth.
Technical language and cross-references within the bill may also hinder public understanding and transparency, while the inclusion of a definition for "Indian tribal government" appears unrelated to the repeal of vehicle credits, raising questions about legislative coherence.
Impact on the Public
The likely impact of H. R. 1367 on the public is multifaceted. Broadly, removing these incentives may slow the transition towards cleaner vehicle technologies, impacting efforts to address climate change and air quality. Consumers interested in purchasing electric vehicles may find fewer financial benefits, which could dissuade environmentally conscious buying decisions. This shift may increase the reliance on traditional fossil fuel vehicles, thus affecting environmental sustainability.
Impact on Specific Stakeholders
Specific stakeholders, such as electric vehicle manufacturers and clean technology businesses, might face negative impacts due to reduced consumer incentives. These industries rely on these credits to help offset the premium costs associated with clean vehicles and infrastructure development. The repeal may shift consumer demand toward less sustainable options, potentially affecting business operations and market competitiveness.
Conversely, the bill may provide an advantage to stakeholders in traditional automotive and fossil fuel industries by reducing competition from clean vehicles. This shift might support businesses that are not as heavily invested in clean technologies.
Conclusion
In conclusion, while the ELITE Vehicles Act aims to remove what it labels as "lavish" incentives, the potential repercussions could significantly affect environmental policy goals and market dynamics within the automotive and energy sectors. The public may face fewer incentives to adopt cleaner vehicle technologies, and the broader environmental and economic impacts necessitate careful consideration by lawmakers and the public.
Issues
The repeal of the clean vehicle credit in Section 2 could negatively affect the adoption of clean vehicles, likely impacting environmental goals and leading to increased greenhouse gas emissions, which is a significant environmental and political issue.
Section 5's exclusion of electric vehicle recharging property from the alternative fuel vehicle refueling property credit may discourage the development and adoption of electric vehicle infrastructure, potentially favoring fossil fuel technologies over clean energy and thus, impacting environmental innovation.
The effective dates provided in Sections 2, 3, 4, and 5 afford limited time for consumers and businesses to adjust their purchasing decisions, potentially leading to market confusion and economic disruption.
The lack of discussion on the economic impacts or rationale behind repealing these credits in Sections 2, 3, and 4 could suggest potential bias or favoritism towards certain industries, raising ethical questions.
Technical and complex language throughout, particularly in Sections 2 and 5, may impair the public’s understanding of the bill's implications, which can create transparency issues.
Including the definition of 'Indian tribal government' in Section 2 seems unrelated to its main focus, possibly leading to questions about legislative purpose and coherence.
Sections
Sections are presented as they are annotated in the original legislative text. Any missing headers, numbers, or non-consecutive order is due to the original text.
1. Short title Read Opens in new tab
Summary AI
The ELITE Vehicles Act stands for the "Eliminate Lavish Incentives To Electric Vehicles Act," and this section gives the short title of the legislation.
2. Repeal of clean vehicle credit Read Opens in new tab
Summary AI
The section repeals the clean vehicle credit from the Internal Revenue Code, involving multiple adjustments to various sections of the Code to reflect this change. Additionally, it defines “Indian tribal government” for certain tax purposes and specifies that the changes will apply to vehicles bought or contracted for after 30 days from the Act's enactment.
3. Repeal of credit for previously-owned clean vehicles Read Opens in new tab
Summary AI
The section eliminates the tax credit for buying previously-owned clean vehicles by removing section 25E from the Internal Revenue Code and an associated item from another part of the code. These changes will apply to vehicles bought, or contracts signed for purchase, starting 30 days after the law is enacted.
4. Repeal of credit for qualified commercial clean vehicles Read Opens in new tab
Summary AI
The section repeals the tax credit for qualified commercial clean vehicles from the Internal Revenue Code, removes related references in the code, and states that these changes will apply to vehicles bought 30 days after the law is enacted.
5. Exclusion of electric vehicle recharging property from alternative fuel vehicle refueling property credit Read Opens in new tab
Summary AI
The section amends the Internal Revenue Code to exclude electric vehicle recharging equipment from being considered as a qualified alternative fuel vehicle refueling property, which means it will no longer qualify for certain tax credits. This change will apply to recharging equipment purchased or under contract to purchase 30 days after the law is enacted.