[DigitalToday reporter Jae-won Choi] The U.S. Democratic Party is pushing to revive a federal tax credit for electric vehicle purchases of up to $7,500 (about 10,023,000 won) that was abolished last year. But voter interest in EVs is waning and Democrats are divided, making the path to restoring the program difficult.
InsideEVs reported on Oct. 26 (local time) that more than 160 House Democrats support energy-related legislation that includes restoring the EV tax credit.
The Energy Bills Relief Act, introduced by Illinois Representative Sean Casten (숀 캐스턴) along with California Representative Mike Levin (마이크 레빈) and others, includes provisions to restore clean-energy tax benefits under the Inflation Reduction Act.
The bill would restore the EV tax credit of up to $7,500 for new vehicle purchases, as well as benefits for used EVs and charging facilities. It also includes steps to prevent the costs of grid modernisation and expanding AI data centres from being passed on to household electricity bills.
Some Democrats believe restoring the tax credit would boost EV sales and help the United States maintain competitiveness in auto industry competition with China.
But voters are less interested than before. In an April Pew Research Center survey, 32 percent of Americans said they were seriously considering buying an EV as their next vehicle. That was 10 percentage points lower than 42 percent in 2022. The share saying they would consider buying a hybrid was 44 percent.
Some Democrats are also urging caution. Senate Democratic Leader Chuck Schumer (척 슈머) stressed restoring clean-energy tax credits but did not directly mention EV support. Senator Elissa Slotkin (엘리사 슬롯킨) also said comprehensive policy is needed rather than focusing on a specific energy source.
Political barriers are also high. Even if Democrats secure majorities in both the House and Senate in the November midterm elections, the bill would require the president's signature to take effect. If a veto is issued, each chamber would have to override it with the support of at least two-thirds.
The existing tax credit ended on Sept. 30 last year. EV sales and charging infrastructure are expanding in the United States, but it remains unclear whether the federal government will reintroduce purchase support.