It’s time for the EV tax credit to be ended, not extended.

The federal electric vehicle tax credit is a misguided and outdated policy that sends a clear and unavoidable message that we trust government, rather than consumers, to decide what kinds of cars Americans should buy.

It’s time for the tax credit, which offers $7,500 to purchasers of the first 200,000 EVs sold per manufacturer, to come to an end.

The justification for this tax credit was to reduce our dependence on foreign oil. Today, America leads the world in energy production. Though the tax credit is no longer needed, lobbyists in Washington are asking for lawmakers to extend the manufacturers’ cap.

Why should taxpayers be subsidizing wealthy people purchasing luxury goods? The Pacific Research Institute published a study earlier this year showing that 78.7 percent of the EV tax credits went to households with an adjusted gross income of $100,000 or higher, and more than half went to households with an adjusted gross income of more than $200,000.

While the tax credit is misguided as a whole, at least its drafters had the foresight to limit the harm that it could do by ensuring that it only applied to the first 200,000 electric cars from a given manufacturer. That admirable restraint should not be jettisoned now.

If policymakers in Washington were to lift the manufacturers’ cap provision of the tax credit, they would inflict further economic harm on American households to the tune of a $95 billion value reduction between 2020 and 2035.

Contact your Representative today and tell them to end the Federal EV Tax Credit.