S. 2537Senate117th Congress (2021-2023)In Committee

Affordable EVs for Working Families Act

Introduced July 29, 2021

AI-Generated Summary

Updated February 8, 2026 at 5:51 AM UTC

The Affordable EVs for Working Families Act creates a federal tax credit for individuals who buy a previously‑owned qualified plug‑in electric vehicle. The credit is intended to make used electric cars more affordable for working‑class families. It applies only to qualifying used EVs purchased at a price under $25,000 and to buyers meeting income and other eligibility rules.

Key Provisions

  • Provides a credit of $1,250 plus up to $1,250 based on battery capacity excess (the lesser of $1,250 or $208.50 per kilowatt‑hour over 4 kWh).
  • Limits the credit to a maximum of 30% of the vehicle’s sale price.
  • Reduces the credit by $200 for each $1,000 (or fraction) that a taxpayer’s adjusted gross income exceeds $75,000 (or $150,000 for joint returns).
  • Defines a “previously‑owned qualified plug‑in electric drive motor vehicle” as one at least two model years older, originally used by someone else, sold for under $25,000, and meeting existing EV qualification criteria.
  • Specifies a “qualified buyer” as an individual purchasing the vehicle for personal use, not receiving other related credits, and who has not claimed this credit in the past three years.
  • Requires the buyer to include the vehicle’s VIN on the tax return and to obtain a certification from the seller confirming the vehicle’s eligibility.

Legislative Activity

Stay on top of the latest movement without scrolling through every action

1 earlier action
SenateIntro Referral Latest Action

Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S5180)

July 29, 2021

View full timeline
SenateIntro Referral

Introduced in Senate

July 29, 2021

SenateIntro Referral

Read twice and referred to the Committee on Finance. (Sponsor introductory remarks on measure: CR S5180)

July 29, 2021

Floor Debate

2 members

What members said about S. 2537 on the floor

2 Democrats
Dianne Feinstein
Sen. Dianne FeinsteinD-CA · Jul 29, 2021

Mr. President, I rise today to introduce the ``Affordable EVs for Working Families Act of 2021.'' This bill is an important measure that will ensure more widespread, equitable adoption of electric…

Dianne Feinstein
Sen. Dianne FeinsteinD-CA · Jul 29, 2021

Mr. President, I rise today to introduce the ``Affordable EVs for Working Families Act of 2021.'' This bill is an important measure that will ensure more widespread, equitable adoption of electric…

Mazie K. Hirono
Sen. Mazie K. HironoD-HI · Jul 29, 2021

Mr. President, I rise today to introduce the Judiciary Accountability Act of 2021. I thank Representatives Johnson, Speier, Nadler, Torres, and Mace, along with my cosponsors, Senators Whitehouse,…

Bill Text

Latest available legislative text

Reading Mode
Latest
Introduced in SenateIssued July 29, 2021

II

117th CONGRESS

1st Session

S. 2537

IN THE SENATE OF THE UNITED STATES

July 29, 2021

Mrs. Feinstein (for herself and Mr. Padilla) introduced the following bill; which was read twice and referred to the Committee on Finance

A BILL

To amend the Internal Revenue Code of 1986 to provide a credit for previously-owned qualified plug-in electric drive motor vehicles.

1.

Short title

This Act may be cited as the Affordable EVs for Working Families Act.

2.

Credit for previously-owned qualified plug-in electric drive motor vehicles

(a)

In general

Subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after section 36B the following new section:

36C.

Previously-owned qualified plug-in electric drive motor vehicles

(a)

Allowance of credit

In the case of a qualified buyer who during a taxable year places in service a previously-owned qualified plug-in electric drive motor vehicle, there shall be allowed as a credit against the tax imposed by this subtitle for the taxable year an amount equal to the sum of—

(1)

$1,250, plus

(2)

in the case of a vehicle which draws propulsion energy from a battery which exceeds 4 kilowatt hours of capacity (determined at the time of sale), the lesser of—

(A)

$1,250, and

(B)

the product of $208.50 and such excess kilowatt hours.

(b)

Limitations

(1)

Sale price

The credit allowed under subsection (a) with respect to sale of a vehicle shall not exceed 30 percent of the sale price.

(2)

Adjusted gross income

The amount which would (but for this paragraph) be allowed as a credit under subsection (a) shall be reduced (but not below zero) by $200 for each $1,000 (or fraction thereof) by which the taxpayer’s adjusted gross income exceeds $75,000 (twice such amount in the case of a joint return).

(c)

Definitions

For purposes of this section—

(1)

Previously-owned qualified plug-in electric drive motor vehicle

The term previously-owned qualified plug-in electric drive motor vehicle means, with respect to a taxpayer, a motor vehicle—

(A)

the model year of which is at least 2 earlier than the calendar year in which the taxpayer acquires such vehicle,

(B)

the original use of which commences with a person other than the taxpayer,

(C)

which is acquired by the taxpayer in a qualified sale,

(D)

registered by the taxpayer for operation in a State or possession of the United States,

(E)

which meets the requirements of subparagraphs (C), (D), (E), (F) of section 30D(d)(1), and

(F)

which is not of a character subject to an allowance for depreciation.

(2)

Qualified sale

The term qualified sale means a sale of a motor vehicle—

(A)

by a seller who holds such vehicle in inventory (within the meaning of section 471) for sale or lease,

(B)

for a sale price of less than $25,000, and

(C)

which is the first transfer since the date of the enactment of this section to a person other than the person with whom the original use of such vehicle commenced.

(3)

Qualified buyer

The term qualified buyer means, with respect to a sale of a motor vehicle, a taxpayer—

(A)

who is an individual,

(B)

who purchases such vehicle for use and not for resale,

(C)

with respect to whom no deduction is allowable with respect to another taxpayer under section 151,

(D)

who has not been allowed a credit under this section for any sale during the 3-year period ending on the date of the sale of such vehicle, and

(E)

who possesses a certificate issued by the seller that certifies—

(i)

that the vehicle is a previously-owned qualified plug-in electric drive motor vehicle,

(ii)

the vehicle identification number of such vehicle,

(iii)

the capacity of the battery at time of sale, and

(iv)

such other information as the Secretary may require.

(4)

Motor vehicle; capacity

The terms motor vehicle and capacity have the meaning given such terms in paragraphs (2) and (4) of section 30D(d), respectively.

(d)

VIN number requirement

No credit shall be allowed under subsection (a) with respect to any vehicle unless the taxpayer includes the vehicle identification number of such vehicle on the return of tax for the taxable year.

(e)

Application of certain rules

For purposes of this section, rules similar to the rules of paragraphs (1), (2), (4), (5), (6) and (7) of section 30D(f) shall apply for purposes of this section.

(f)

Certificate submission requirement

The Secretary may require that the issuer of the certificate described in subsection (c)(3)(E) submit such certificate to the Secretary at the time and in the manner required by the Secretary.

.

(b)

Conforming amendments

(1)

Section 6211(b)(4)(A) of such Code is amended by inserting 36C, after 36B,.

(2)

Section 6213(g)(2) of such Code is amended—

(A)

in subparagraph (P), by striking and at the end,

(B)

in subparagraph (Q), by striking the period at the end and inserting , and, and

(C)

by adding at the end the following:

(R)

an omission of a correct vehicle identification number required under section 36C(d) (relating to credit for previously-owned qualified plug-in electric drive motor vehicles) to be included on a return.

.

(3)

Paragraph (2) of section 1324(b) of title 31, United States Code, is amended by inserting 36C, after 36B,.

(c)

Clerical amendment

The table of sections for subpart C of part IV of subchapter A of chapter 1 of the Internal Revenue Code of 1986 is amended by inserting after the item relating to section 36B the following new item:

.

(d)

Effective date

The amendments made by this section shall apply to vehicles acquired after the date of the enactment of this Act.