Consumer Reports on Wednesday called on Republican lawmakers to reconsider a proposed annual fee on electric vehicles (EVs), warning that the measure would disproportionately burden EV and plug-in hybrid owners compared to those driving gasoline-powered vehicles.
The influential consumer advocacy group criticized provisions in a tax and budget bill passed by the U.S. House of Representatives in May, which include a proposed $250 annual fee on EVs. Senator Bernie Moreno has reportedly proposed raising that fee to $500 for EVs and $250 for plug-in hybrid electric vehicles (PHEVs).
“These are punitive taxes designed to confiscate fuel savings from consumers who just want to save money for their families,” said Chris Harto, senior policy analyst at Consumer Reports.
According to the group, the proposed fees would result in EV drivers paying between three and seven times more than gasoline vehicle owners in equivalent federal fuel taxes. The policy, if enacted, could affect owners of vehicles made by Tesla, General Motors, and other automakers.
The bill also seeks to roll back several key provisions intended to support the clean energy transition. Among the proposed changes: eliminating the $7,500 federal tax credit for most new EV purchases by the end of 2024, ending the $4,000 credit for used EVs, repealing vehicle emissions regulations, and scrapping an Energy Department loan program that backs advanced vehicle manufacturing.
Additionally, the bill would phase out EV battery production tax credits by 2028. Ford Motor said the proposed elimination of incentives tied to Chinese technology could jeopardize a $3 billion investment in its new battery plant in Marshall, Michigan. The facility, which is already 60% complete, is expected to employ 1,700 workers.