Consumer Reports urges Congress to drop electric vehicle tax proposal

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a day ago

By David Shepardson
WASHINGTON (Reuters) -An influential consumer organization on Wednesday urged Republican lawmakers to drop a plan to impose a proposed $250 annual fee on electric cars to pay for road repairs.
Consumer Reports, which also tests and rates new vehicles, noted that Republican Senator Bernie Moreno has called for boosting the proposed yearly fee to $500 for EVs and $250 for plug-in hybrids versus the tax and budget bill over the fee in the bill approved by the U.S. House in May.
WHY IT'S IMPORTANT
The fees would mean consumers would pay anywhere from three to seven times as much as owners of similar conventional gasoline vehicles in federal gas taxes, Consumer Reports said. The new fees could hit Tesla, GM other EV owners.
KEY QUOTES
Chris Harto, senior policy analyst at Consumer Reports said the EV fees were "punitive taxes designed to confiscate fuel savings from consumers who just want to save money for their families."
CONTEXT
Lawmakers in April dropped a $20 federal yearly registration fee on all vehicles starting in 2031 to fund road repairs.
The U.S. House bill would end a $7,500 tax credit for new EVs for most automakers by Dec. 31, end a $4,000 used car EV tax credit, repeal vehicle emissions rules and kill an Energy Department loan program that supports the manufacture of green advanced technology vehicles.
It would also phase out EV battery production tax credits in 2028. Ford said the bill's provision to eliminate EV battery production using Chinese technology threatens the automaker's projected $3 billion investment in a Marshall, Michigan, plant that is 60% complete and slated to employ 1,700 workers.
On Thursday, President Donald Trump will sign three resolutions approved by lawmakers barring California's electric vehicle sales mandates and diesel engine rules, auto industry and House aides told Reuters.