Philip Ellender, president of government and public affairs for Koch Industries, issued the following statement urging Congress to abandon consideration of a business tax extenders package during the lame-duck session, especially including the expansion of the electric vehicle tax credit:
Before this Congress adjourns, we strongly encourage lawmakers to reject the renewal of tax extenders, especially including the expansion of the electric vehicle (EV) tax credit that rigs the system in favor of one form of energy over all others.
As we noted in a letter to lawmakers last month on a proposed plug-in electric vehicle credit extension, companies should succeed or fail based on the value they provide through their products and services, not by government favoritism. Instead of expanding a subsidy for EV owners – a 2018 Pacific Research Institute study examines the existing costs of these subsidies – Congress should eliminate it along with all other energy incentives, including eliminating any incentives given to us and our competitors where we participate.
Last year’s landmark Tax Cuts and Jobs Actrendered some tax extenders provisions now under consideration redundant. Others are corporate handouts that – even if they benefit Koch companies – simply run contrary to our longstanding opposition to all forms of corporate welfare.
To be sure, we do not oppose electric vehicles – they are an option for people who value this fuel source in meeting their personal transportation needs. What we oppose is their subsidization by the government. We encourage lawmakers to allow innovation and consumer choice to drive this industry, not tax dollars and government subsidies.
- NERA Economic Study analyzing the effect of removing the manufacturers’ vehicle cap on PEVs that qualify for the federal tax credit
A September 2018 study done by NERA Economic Consulting found eliminating a cap on electric vehicle sales would cause the collective personal income of U.S. households to fall by $7 billion in 2020 and $12 billion in 2035, or about $50 to $70 per household.The study notes that although consumers benefit from lower gasoline bills and EV infrastructure investment stimulus, consumers ultimately pay for the tax credit and investment in EV infrastructure both directly and indirectly. As a result, consumers have less money to spend and reduce their consumption of other goods and services.
- Oct 24: Koch Industries Urges House and Senate Lawmakers to Allow Innovation and Consumer Choice to Drive Auto Industry; Not Government Subsidies and Tax Dollars
On behalf of Koch Companies Public Sector, I urge you to oppose the expansion of credits on plug-in electric vehicles (EV) through 2022. The existing federal tax credit of $7,500 has already been expanded from the first 200,000 vehicles produced to the first 200,000 vehicles produced by each manufacturer. This is in addition to other state-based subsidies. We do not oppose electric vehicles – they are an option for people who value this fuel source in meeting their personal transportation needs. We do oppose their subsidization by the government. I encourage you to allow innovation and consumer choice to drive this industry, not tax dollars and government subsidies.