Gov’t Watchdog Finds Nearly $82 Million in Electric Vehicle Tax Fraud

‘The EV tax credit has served its purpose…’

30 Free Market Groups Urge Congress Not to Expand Electric Vehicle Subsidies 1

IMAGE: mmurphy (CC) via Pixabay

(Joshua Paladino, Liberty Headlines) A report from the Treasury Department’s inspector general for tax administration found that the federal government granted nearly $82 million in electric vehicle (EV) tax credits for vehicles that did not qualify between 2013 and 2017.

In response to the report‘s release, Sen. John Barrasso, R-Wyo., sent a letter to Senate Majority Leader Mitch McConnell, R-Ky., urging him to block legislative efforts to expand or extend the EV purchase tax credit.

“This lost tax revenue adds to the already staggering cost of the EV tax credit. Yet, supporters of the credit want taxpayers to continue footing the bill for EV purchases, both real and ineligible, for years to come,” Barasso wrote.

Current legislation to expand or eliminate the current cap on the EV tax credit would result in taxpayers paying anywhere from $15.7 billion to $46.4 billion over the next 10 years, he said, citing a recent study from Ernst & Young.


The EV purchase tax credit gave individuals a $7,500 rebate on their taxes if they purchased a “qualifying plug-in electric drive vehicle.”

The IG report found that the government granted 239,422 EV tax credits and that as many as 16,510 were identified as “potentially erroneous.”

The inspector general recommended that the IRS commissioner use vehicle identification numbers to verify eligibility for the EV tax credit.

“The EV tax credit has served its purpose,” Barrasso said. “Over one million EVs are currently on America’s roads. By 2030, forecasts expect over 3.5 million EVs to be sold annually.”

Barrasso said the tax credit incentive was no longer needed. “Despite this, efforts are underway to expand this temporary tax credit,” he continued. “Now, it turns out that the credit is being exploited and costing taxpayers tens of millions of dollars more.”