Representative Greg Landsman introduced the 21st Century Vehicle Choice Act (H.R. 10881) on October 22. The bill proposes a permanent federal tax credit of up to $15,000 for new electric vehicles and $8,000 for used ones. This proposal doubles the previous $7,500 credit structure established under the Inflation Reduction Act.
The legislation maintains existing requirements, including North American final assembly and MSRP caps of $55,000 for cars and $80,000 for SUVs, pickups, and vans. It also mandates a Department of Energy study on gasoline super-users, focusing on the top 10% of light-duty vehicle owners by fuel consumption to track charger availability.
The bill currently has no cosponsors and was referred to three House committees. Similar to a previous version introduced in 2024, it faces significant legislative hurdles as Republicans currently control both the House and Senate. Experts note that the bill is unlikely to become law before 2029.
Market data from Cox Automotive shows that US electric vehicle sales reached 262,649 units in Q3 2026, marking a 6.1% increase from Q2 but a 39.5% decline year-over-year. The market share for new vehicle sales stood at 6.4% during this period.
Analysts warn that publicizing the potential $15,000 credit may discourage consumers from purchasing vehicles now, despite the lack of retroactive application in the bill. Automakers are currently offering price reductions to compensate for the absence of federal incentives.
