[Congressional Record Volume 167, Number 133 (Thursday, July 29, 2021)]
[Senate]
[Page S5180]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]

      By Mrs. FEINSTEIN (for herself and Mr. Padilla):
  S. 2537. A bill to amend the Internal Revenue Code of 1986 to provide 
a credit for previously-owned qualified plug-in electric drive motor 
vehicles; to the Committee on Finance.
  Mrs. FEINSTEIN. Mr. President, I rise today to introduce the 
``Affordable EVs for Working Families Act of 2021.''
  This bill is an important measure that will ensure more widespread, 
equitable adoption of electric vehicles by creating a tax credit for 
buyers of pre-owned electric vehicles, similar to the tax credit that 
exists for purchasers of new electric vehicles.
  Starting now, and over the next several decades, the United States 
must take swift, decisive action to reduce our carbon emissions--
especially from the transportation sector, which makes up one-third of 
all U.S. carbon emissions.
  I am proud to say that California has led the way in the adoption of 
low- and zero-emission vehicles for several decades by incentivizing 
the development and purchase of electric and hybrid electric vehicles, 
and setting high fuel economy standards that 13 States have opted to 
follow.
  According to research released just last month by the Pew Research 
Center, California has by far the highest share of electric vehicles of 
any State in the Nation--on average, 12 electric vehicles registered 
per 1,000 people.
  As a result, California now has the largest pre-owned electric 
vehicle market in the nation. Sales for pre-owned electric vehicles in 
California have grown significantly in recent years.
  However, a study released just last month by Energy Innovation found 
that for lower-income households, the up-front costs of purchasing an 
electric vehicle presents an especially large hurdle, despite the long-
term cost savings that they offer, such as on gas and maintenance.
  Transportation is the second-largest expense for all U.S. households, 
but presents a particular burden for lower-income households--
suggesting that incentives for pre-owned buyers targeted toward lower 
and middle-income communities can increase adoption of electric 
vehicles in those communities significantly, and further accelerate 
overall adoption.
  We cannot miss an opportunity to ensure that as we electrify our 
transportation sector, electric vehicles become an option for all 
families--not just those who can afford new ones.
  My bill would do just that.
  My bill would provide a $2,500 tax credit to purchasers of preowned 
electric vehicles, similar to the credit already offered to purchasers 
of new electric vehicles. The credit only applies to vehicles that cost 
$25,000 or less, and would be phased down for buyers whose adjusted 
gross income exceeds $75,000 per year for individuals and $150,000 for 
joint filers.
  My bill also includes critical safeguards such as a vehicle 
identification number reporting requirements and a 2-year previous 
ownership requirement to ensure that any attempted fraud is quickly 
caught.
  I would like to thank Congressmen Jimmy Gomez who is introducing the 
House companion to this bill, and has carried this effort in the House, 
along with Congressman Mike Thompson who included a similar provision 
in the House clean energy tax incentives package, the GREEN Act.
  I would also like to thank the Los Angeles Department of Water and 
Power, California Air Resources Board, our utilities and other 
California localities that have led the way on this policy by offering 
their own rebates for pre-owned electric vehicles.
  Now, with the Senate considering historic investments in electric 
vehicles and charging infrastructure, it is time for the federal 
government to follow California's lead and ensure that buyers of pre-
owned vehicles receive a tax credit similar to the one for buyers of 
new EVs.
  I urge my colleagues to support this bill. Thank you, Mr. President. 
I yield the floor.
                                 ______