Sen. Bernie Moreno is scrutinizing $22 billion in tax credits for luxury electric vehicles, calling it a misuse of taxpayer money.
Columbus: Newly elected Sen. Bernie Moreno is diving into a hefty $22 billion in tax credits linked to President Biden’s Inflation Reduction Act. He argues these funds are mainly helping wealthy folks buy fancy electric cars.
This law, which is part of a massive $891 billion package, is expected to cost taxpayers a whopping $1.2 trillion over the next decade. Moreno, who used to sell cars, claims the rules for these green tax credits are allowing rich Americans to snag plush rides like Rolls Royces and Porsches.
Moreno didn’t hold back, saying, “COVID was bad public policy, but this EV credit is right up there as one of the worst in American history. It’s just obscene.”
He’s particularly concerned about the clean vehicle credit and other related incentives, which are projected to cost around $21.7 billion in the next five years. Moreno thinks the criteria set for these credits are way off base.
He pointed out that the income cap for these credits is $300,000, which he feels is still a lot of money. Plus, the car price limit is $80,000, which he argues is also pretty high. “Commercial use” is another term he flagged, explaining that it often just means leasing, which can let people get around the rules.
Moreno also mentioned that there’s a credit for used EVs that gives dealerships $4,000 for every car sold, which he believes is inflating resale prices. He’s not a fan of how dealers are exploiting loopholes to cash in on these credits.
He’s been gathering evidence, including lease agreements from luxury brands like Porsche, showing how dealers can pocket $7,500 for every electric vehicle sold. “Every car company knows how to work the system,” he said.
Moreno has reached out to the IRS, asking for a full audit of these tax credits. He wants to know exactly how much taxpayer money is being spent and who’s benefiting from it. He’s hoping to get this audit done quickly and plans to push for legislation to scrap these tax credits altogether.
As of now, the IRS has been sending out these handouts since the law was passed, and Moreno believes they should have all the records needed to clarify the situation. The senator is eager to see some accountability in how these funds are being used.
