21st Century Vehicle Choice Act
- Sponsor
- Rep. Landsman, Greg [D-OH-1]
- Committees
- Ways and Means Committee (primary)
- Last action
- Oct 22, 2026
Bottom line
The bill aims to accelerate the transition to electric and alternative fuel vehicles by enhancing and making permanent key tax incentives, while also gathering data on vehicle markets and critical supply chains.
What it actually does
This bill, titled the "21st Century Vehicle Choice Act," mandates several reports by federal agencies on vehicle availability, critical minerals for electric vehicles, and gasoline consumption patterns. Crucially, it makes permanent and increases the value of federal tax credits for new clean vehicles, previously-owned clean vehicles, and alternative fuel refueling property, while simultaneously lowering the income eligibility thresholds for the new clean vehicle credit.
Proponents argue
Supporters argue that making these tax credits permanent and increasing their value provides long-term certainty for consumers and the automotive industry, accelerating the adoption of clean vehicles and reducing carbon emissions. They contend that the reporting requirements will provide valuable data to inform future policy and address supply chain vulnerabilities for critical minerals, while the focus on "gasoline super-users" can target infrastructure development where it's most needed.
Opponents contend
Critics might argue that increasing and making permanent these tax credits represents an unnecessary expansion of government subsidies, potentially benefiting wealthier individuals despite the lowered income caps, and adding to the national debt. They may also question the effectiveness of such incentives in truly shifting consumer behavior or the administrative burden of the numerous reporting requirements on federal agencies.
The bill is concise and its provisions are clearly laid out, making it accessible for a reader to understand its core changes within a reasonable timeframe.
Section 2(a)
Requirement for Vehicle Choice Report
This provision requires the Secretary of Commerce to submit a report to Congress within 180 days detailing the variety of new motor vehicles available for purchase in the United States. It must include data on personal use, light-duty, heavy-duty vehicles, and trucks, as well as trends in their average and median purchase prices and ownership costs, such as insurance, fuel, and maintenance.
Supporters argue
Supporters argue this report will provide crucial market transparency, helping policymakers understand consumer choices, market trends, and the economic factors influencing vehicle ownership, which can inform future legislative efforts.
Critics contend
No specific opposition is typically raised against data collection provisions of this nature, though some might argue it adds to administrative burden without a clear policy outcome.
Tradeoffs
Balances the desire for comprehensive market data against the administrative resources required for its compilation.
Section 2(b)
Reports on Critical Minerals for Hybrid and Electric Vehicles
This section mandates the Secretary of Energy, in consultation with several other cabinet secretaries and the USTR, to submit annual reports for five years. These reports must identify critical minerals necessary for hybrid vehicles, electric vehicles, battery technologies, and related emerging technologies, and describe the implementation of Executive Order 13817 concerning these minerals.
Section 2(c)
Study and Reports on Gasoline Super-users and EV Charging
This provision requires an initial study within two years to identify geographic regions and routes with the highest concentrations of "gasoline super-users" (top 10% gasoline consumers). Following this, annual reports for five years will detail the availability and usage of EV charging stations in these identified areas. The goal is to understand where EV infrastructure is most needed to facilitate transitions for high-consumption drivers.
Section 3(b) and (d)
Increase and Permanence of New Clean Vehicle Tax Credit
This provision increases the maximum value of the new clean vehicle tax credit (Internal Revenue Code Section 30D) from $3,750 to $7,500. Additionally, it makes the credit permanent by striking the existing sunset clause, ensuring its long-term availability for eligible new clean vehicles.
Section 3(c)
Reduced Income Eligibility for New Clean Vehicle Tax Credit
This provision lowers the modified Adjusted Gross Income (AGI) caps for eligibility for the new clean vehicle tax credit. For joint filers, the cap decreases from $300,000 to $225,000; for heads of household, from $225,000 to $169,000; and for other filers, from $150,000 to $112,500. This restricts the credit to lower-income purchasers.
Section 4(a) and (b)
Increase and Permanence of Previously-Owned Clean Vehicle Credit
This provision increases the maximum credit for previously-owned clean vehicles (Internal Revenue Code Section 25E) from $4,000 to $8,000 and raises the credit percentage from 30 percent to 60 percent of the sale price. It also makes this credit permanent by removing its sunset clause.
Section 5(a) and (b)
Increase and Permanence of Alternative Fuel Refueling Property Tax Credit
This provision increases the tax credit for qualified alternative fuel vehicle refueling property (Internal Revenue Code Section 30C) from 30 percent to 50 percent of the cost. It also makes this credit permanent by striking its sunset clause.
Amends Section 30D(b) of the Internal Revenue Code to specify that a taxpayer cannot receive the new clean vehicle tax credit if they have received it in any previous taxable year, or for another new clean vehicle placed in service earlier in the same taxable year. This effectively limits the credit to one per taxpayer, ever.
Section 3(a)
Why it matters:This is standard legislative practice to define eligibility precisely within the tax code. It's not necessarily evasive but requires careful reading of the limitations.
Case for: Proponents would argue this ensures the credit is widely distributed among taxpayers and prevents individuals from repeatedly benefiting from the subsidy, maximizing the number of new EV adopters supported by the program.
Case against: Critics might argue that this limitation could discourage households with multiple vehicles from transitioning their entire fleet to electric, or that it penalizes early adopters who might want to upgrade their EV.
Estimated impact: This provision limits the total number of credits claimed over time by individual taxpayers, potentially reducing the overall fiscal impact compared to a scenario where multiple credits per taxpayer were allowed. It also broadens the reach of the credit to more unique individuals.