Reps. Cleaver, Sewell Introduce Legislation to Lower Cost of Electric Vehicles

Press Release

Today, U.S. Representatives Emanuel Cleaver, II (D-MO) and Terri Sewell (D-AL) Affordable Electric Vehicles for America Act, introduced legislation to ensure consumers can immediately and fully access tax credits provided under the Inflation Reduction Act that will lower the cost of purchasing electric vehicles (EVs). The legislation would delay the phase-in of the EV sourcing and manufacturing requirements necessary for credit eligibility from 2023 to 2026, giving American automakers the time they need to shore up their domestic supply chains while still offering full access to the tax credits to American consumers. These requirements were included in the Inflation Reduction Act (IRA), which Rep. Cleaver supported and was signed into law by President Biden in August. Companion legislation has been introduced in the U.S. Senate by Senator Reverend Raphael Warnock (D-GA).

"I'm proud to introduce the Affordable Electric Vehicles for America Act with Congresswoman Sewell as we seek to lower energy costs for American families, create good-paying manufacturing jobs here at home, and accelerate our nation's transition away from costly fossil fuels and toward affordable, clean vehicles," said Congressman Cleaver. "Our legislation takes important steps to make the historic electric vehicle tax credits passed in the Inflation Reduction Act immediately accessible to consumers, particularly working- and middle-class Americans who would like to purchase an electric vehicle but need the federal credit to do so. As oil companies insist on continuing their exorbitant price-gouging of families at the pump, these tax credits offer hardworking Americans immediate and significant financial assistance to help them purchase a vehicle that is better both for the environment and their wallets. This bill would be a major win for consumers, autoworkers, and businesses alike, and I will work with my colleagues to ensure it is signed into law by President Biden."

"Democrats' historic Inflation Reduction Act includes critical tax credits that are bringing down the cost of electric vehicles and making them more accessible to working and middle class Alabamians, all while accelerating our transition to a clean energy economy," said Rep. Sewell. "The Affordable Electric Vehicles for America Act is a win-win for Alabama, ensuring that automakers and car buyers alike can take advantage of these tax credits immediately. My Democratic colleague and I will continue working to tackle inflation and lower costs!"

"The Affordable Electric Vehicles for America Act will lower costs and provide consumers more options when purchasing an electric vehicle, while also supporting good-paying jobs across Georgia and our country," said Senator Reverend Warnock. "I'm focused squarely on helping car buyers save money and helping car manufacturers who do business in our state thrive. That's why I'm pleased to partner with Representatives Sewell and Cleaver to get this bill over the finish line."

The Affordable Electric Vehicles for America Act would delay the IRA's phase-in period for automakers to follow specific sourcing and assembly requirements for their EVs in order for Americans to qualify for the federal tax credit to purchase a new vehicle. These requirements include:

Requiring EVs to be manufactured in North America;
Requiring EV batteries to be made domestically; and
Mandating that critical minerals used in battery production are only sourced domestically or from nations with whom America has a free trade agreement.
A vocal champion of strengthening domestic manufacturing, Rep. Cleaver was proud to support provisions in the Inflation Reduction Act that incentivize automakers to return manufacturing to American factories. However, to give American automakers additional time to meet these new "Made in America" requirements, and to ensure Missourians can immediately access the federal tax credits to lower the cost of EVs, the Affordable Electric Vehicles for America Act would extend the phase-in period for such requirements until 2026.

Congressman Cleaver has been a long-time supporter of accelerating our nation's transition to renewable energy and EVs, creating good-paying green manufacturing jobs, and cutting down on carbon emissions. In February, Rep. Cleaver announced that Missouri had secured nearly $15 million in funding from the Bipartisan Infrastructure Law to build out an EV infrastructure network across the state. In July, Rep. Cleaver announced that he had secured $4 million in federal funding for the Kansas City Area Transportation Authority (KCATA) to purchase Low and No Emission Buses and support infrastructure as Kansas City continues to go green.

Official text of the Affordable Electric Vehicles for America Act is available here.

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