auto dealer in black and red logo
MenuMENU
SearchSEARCH

Democrats Signal Defeat on EV Tax Credit

The federal spending bill being negotiated by House and Senate leaders is not likely to include an extension of the $7,500 tax credit for buyers of electric vehicles.

Tariq Kamal
Tariq KamalFormer Associate Publisher
Read Tariq's Posts
December 17, 2019
Democrats Signal Defeat on EV Tax Credit

Sen. Debbie Stabenow (D-Mich.) told Bloomberg the federal electric vehicle tax credit would be difficult to extend in the face of “extreme resistance” from the Trump administration.

Photo courtesy Sen. Debbie Stabenow via Flickr

2 min to read


WASHINGTON — An Obama era tax credit for buyers and lessees of new electric vehicles will not likely be extended as part of a new federal spending bill, Reuters reports. A campaign led by manufacturers and Democratic legislators failed to sway Republican leaders, including President Donald Trump, who have denounced the credit as a tax break for wealthy car buyers.

“There has been extreme resistance from the president. It’s going to be difficult,” Sen. Debbie Stabenow (D-Mich.) told Bloomberg this week.

Read: Trump Budget Kills EV Tax Credit

The $7,500 income tax deduction was introduced in 2009 and applied to the first 200,000 electric units built by any manufacturer in the U.S. market. The nation’s EV leaders, General Motors and Tesla, exceeded that mark in 2018 but have since benefited from credits of diminishing amounts. The current federal tax credit of $1,875 for GM and Tesla units will expire Dec. 31 and March 1, respectively.

Opponents of the extension frequently referenced a 2014 IRS report that found 79% of electric vehicle tax credits went to households earning $100,000 or more. Only 1% were claimed by households earning less than $50,000.

Proponents countered the IRS figures set aside the fact that dealers were able to apply the credit to leases, which accounted for a majority of the EV market as recently as 2017, according to Bloomberg Intelligence.

“The tax credit quickly became another example of the government’s solicitousness for those who are comfortable and who are skillful in defense of their comforts.”

Columnist George Will summarized the conservative viewpoint in an April column for The Washington Post.

“The tax credit quickly became another example of the government’s solicitousness for those who are comfortable and who are skillful in defense of their comforts,” he wrote. “Today, demand for electric cars is still insufficient to produce manufacturing economies of scale (after a decade of production, moral exhortations and subsidies, electric cars are a fraction of 1% of all vehicle sales), and batteries are expensive.”

Read: EVs Cost Even More Than You Think

More Dealer Ops

Auto Dealer Today, Dealer Debrief, 07/15/2026, with Lauren Lawrence
Dealer Opsby Lauren LawrenceJuly 15, 2026

Dealer Debrief: Defection Data & EV Updates

In this week's debrief, host Lauren Lawrence discusses how to use defection data to your advantage and the latest on EV sales and charging infrastructure.

Read More →
Two professionals shake hands while exchanging a car key fob beside a vehicle, symbolizing a vehicle sale, lease agreement, or dealership transaction.
SponsoredJuly 8, 2026

How Defection Data is Bridging the Dealership Conversion Gap

Lead volume is flat, cross-shopping is up and brand loyalty is in retreat. As confident sales teams keep losing buyers they thought they had, daily industry sales data is showing dealers exactly where their funnel is breaking and how to fix it without buying a single new lead.

Read More →
Auto Dealer Today, Dealer Debrief, 07/02/2026 with Lauren Lawrence
Dealer Opsby Lauren LawrenceJuly 2, 2026

Dealer Debrief: Where are you losing customers?

In this week's debrief, host Lauren Lawrence discusses the hidden leaks in dealerships where you might be losing customers without even realizing it.

Read More →
Ad Loading...
Auto Dealer Today, Dealer Debrief, 06/25/2026, with Lauren Lawrence
Dealer Opsby Lauren LawrenceJune 26, 2026

Dealer Debrief: Improving Your Inventory Management

In this week's debrief, host Lauren Lawrence covers a new survey that shows what service technicians really want and two launches that could help improve your inventory and vehicle life cycle management.

Read More →
group of people standing in a circle holding puzzle pieces together
Dealer OpsJune 1, 2026

Ladies and Gentlemen, This Is a Dealership: Why the Fundamentals Still Decide Who Wins

A teaching moment by a legendary football coach happens to apply perfectly in the auto retail space. Learn what it is and how to use it to your store’s advantage.

Read More →
Cover image for a BOK Financial report titled “Timing the market: How avoiding volatility entirely can hurt long-term reinsurance program performance.” The image shows several road construction barricades with flashing amber warning lights lined up in a nighttime work zone. Beneath the image, red text explains that avoiding volatility can mean falling behind inflation and missing market rebounds that drive long-term surplus growth. The BOK Financial logo appears at the bottom right.
SponsoredMay 8, 2026

What Market Timing Mistakes Mean for Your Reinsurance Program

When volatility hits, dealer-owned reinsurance programs face a familiar temptation: pull back and wait for calmer waters. New data from BOK Financial shows why that instinct can quietly cost you years of surplus growth.

Read More →
Ad Loading...
two cars on a billboard, No Hidden Fees
ComplianceMay 1, 2026

Dealer Ads and the FTC

The agency has made it clear in recent enforcement actions and warnings, in auto retail and other industries, that advertised prices must include all nonoptional costs to the consumer.

Read More →
Closeup of white car's headlight, front end
Dealer Opsby Hannah MitchellApril 17, 2026

Used Autos Supply Dwindles

The March shopping surge, despite high prices, cut into inventory by the most since the thick of the pandemic, Cox Automotive analysts calculated.

Read More →
hands making protective frame over red car, Risk Reality Check, Be Proactive, Auto Dealer Today logo
Dealer OpsApril 1, 2026

Managing Risk Effectively Through Changing Times

The variables influencing risk pricing have changed significantly over the past five years. Being proactive and responsive to emerging trends is not optional but essential.

Read More →
Ad Loading...
Car key, stacks of coins, and a paper car cutout with AutoPayPlus logo, representing auto financing, loan terms, and vehicle affordability trends.
Dealer Opsby StaffMarch 31, 2026

Survey Reveals What Won't Fix What's Breaking Car Sales

AutoPayPlus says extra-long auto loans are trapping consumers and threatening the dealer trade-in cycle, and that the industry is leveraging the wrong tools to combat high MSRPs.

Read More →