S. 541 — ELITE Vehicles Act

Summary

Eliminate Lavish Incentives To Electric Vehicles Act or the ELITE Vehicles Act

This bill eliminates federal tax credits for the purchase of certain clean vehicles (generally electric vehicles and plug-in hybrid vehicles) and electric vehicle recharging stations.

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 used to recharge electric vehicles (tax credit of up to $1,000 for individuals or up to $100,000 for businesses for the installation of property before 2033 that is used to recharge electric vehicles).

Full Text

[Congressional Bills 119th Congress]
[From the U.S. Government Publishing Office]
[S. 541 Introduced in Senate (IS)]

<DOC>






119th CONGRESS
  1st Session
                                 S. 541

To amend the Internal Revenue Code of 1986 to repeal the credit for new 
                clean vehicles, and for other purposes.


_______________________________________________________________________


                   IN THE SENATE OF THE UNITED STATES

                           February 12, 2025

  Mr. Barrasso (for himself, Mr. Thune, Mr. Cotton, Mrs. Capito, Mr. 
Lankford, Ms. Lummis, Mr. Cramer, Mr. Sheehy, Mr. Ricketts, Ms. Ernst, 
  Mr. Cassidy, Mr. Marshall, Mr. Tillis, Mr. Hoeven, and Mr. Scott of 
   Florida) introduced the following bill; which was read twice and 
                  referred to the Committee on Finance

_______________________________________________________________________

                                 A BILL


 
To amend the Internal Revenue Code of 1986 to repeal the credit for new 
                clean vehicles, and for other purposes.

    Be it enacted by the Senate and House of Representatives of the 
United States of America in Congress assembled,

SECTION 1. SHORT TITLE.

    This Act may be cited as the ``Eliminate Lavish Incentives To 
Electric Vehicles Act'' or the ``ELITE Vehicles Act''.

SEC. 2. REPEAL OF CLEAN VEHICLE CREDIT.

    (a) In General.--Subpart B of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by striking section 30D 
(and by striking the item relating to such section in the table of 
sections for such subpart).
    (b) Conforming Amendments.--
            (1) Section 30B(d)(3) of the Internal Revenue Code of 1986 
        is amended by striking subparagraph (D).
            (2) Section 38(b) of such Code is amended by striking 
        paragraph (30).
            (3) Section 179D(d) of such Code is amended--
                    (A) in paragraph (3)(B)(ii), by striking ``(as 
                defined in section 30D(g)(9))'', and
                    (B) by adding at the end the following new 
                paragraph:
            ``(6) Indian tribal government.--For purposes of this 
        subsection, the term `Indian tribal government' means the 
        recognized governing body of any Indian or Alaska Native tribe, 
        band, nation, pueblo, village, community, component band, or 
        component reservation, individually identified (including 
        parenthetically) in the list published most recently as of the 
        date of enactment of this paragraph pursuant to section 104 of 
        the Federally Recognized Indian Tribe List Act of 1994 (25 
        U.S.C. 5131).''.
            (4) Section 1016(a) of such Code is amended--
                    (A) in paragraph (36), by adding ``and'' at the 
                end,
                    (B) by striking paragraph (37), and
                    (C) by redesignating paragraph (38) as paragraph 
                (37).
            (5) Section 6213(g)(2) of such Code is amended by striking 
        subparagraph (T).
            (6) Section 6417(d)(1)(A)(iv) of such Code is amended by 
        striking ``section 30D(g)(9)'' and inserting ``section 
        179D(d)(6)''.
            (7) Section 6501(m) of such Code is amended by striking 
        ``30D(f)(6),''.
            (8) Section 166(b)(5)(A)(ii) of title 23, United States 
        Code, is amended by inserting ``, as in effect on the date of 
        the enactment of the ELITE Vehicles Act'' after ``section 
        30D(d)(1) of the Internal Revenue Code of 1986''.
    (c) Effective Date.--The amendments made by this section shall 
apply to vehicles purchased, or for which a written binding contract to 
purchase has been entered into, after the date which is 30 days after 
the date of enactment of this Act.

SEC. 3. REPEAL OF CREDIT FOR PREVIOUSLY-OWNED CLEAN VEHICLES.

    (a) In General.--Subpart A of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by striking section 25E 
(and by striking the item relating to such section in the table of 
sections for such subpart).
    (b) Conforming Amendment.--Section 6213(g)(2) of the Internal 
Revenue Code of 1986 is amended by striking subparagraph (U).
    (c) Effective Date.--The amendments made by this section shall 
apply to vehicles purchased, or for which a written binding contract to 
purchase has been entered into, after the date which is 30 days after 
the date of enactment of this Act.

SEC. 4. REPEAL OF CREDIT FOR QUALIFIED COMMERCIAL CLEAN VEHICLES.

    (a) In General.--Subpart D of part IV of subchapter A of chapter 1 
of the Internal Revenue Code of 1986 is amended by striking section 45W 
(and by striking the item relating to such section in the table of 
sections for such subpart).
    (b) Conforming Amendments.--
            (1) Section 38(b) of the Internal Revenue Code of 1986, as 
        amended by sections 13502, 13701, and 13704 of Public Law 117-
        169, is amended--
                    (A) by striking paragraph (37), and
                    (B) by redesignating paragraphs (38) through (41) 
                as paragraphs (37) through (40), respectively.
            (2) Section 6213(g)(2) of such Code is amended--
                    (A) by adding ``and'' at the end of subparagraph 
                (R),
                    (B) by striking the comma at the end of 
                subparagraph (S) and inserting a period, and
                    (C) by striking subparagraph (V).
    (c) Effective Date.--The amendments made by this section shall 
apply to vehicles purchased, or for which a written binding contract to 
purchase has been entered into, after the date which is 30 days after 
the date of enactment of this Act.

SEC. 5. EXCLUSION OF ELECTRIC VEHICLE RECHARGING PROPERTY FROM 
              ALTERNATIVE FUEL VEHICLE REFUELING PROPERTY CREDIT.

    (a) In General.--Section 30C of the Internal Revenue Code of 1986 
is amended--
            (1) in subsection (c)--
                    (A) in paragraph (1)(B), by striking clause (iii), 
                and
                    (B) by striking paragraph (2) and inserting the 
                following:
            ``(2) Exclusion of electric vehicle recharging property.--
        The term `qualified alternative fuel vehicle refueling 
        property' shall not include any property for the recharging of 
        motor vehicles propelled by electricity.'', and
            (2) by striking subsection (f).
    (b) Effective Date.--The amendments made by this section shall 
apply to property purchased, or for which a written binding contract to 
purchase has been entered into, after the date which is 30 days after 
the date of enactment of this Act.
                                 <all>

Legislative Actions

2025-02-12
Introduced in Senate
2025-02-12
Read twice and referred to the Committee on Finance.

ELITE Vehicles Act

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