U.S. Democrats Introduce Bill to Double EV Tax Credit to $15,000

Democratic Representative Greg Landsman of Ohio introduced H.R. 10881, the 21st Century Vehicle Choice Act, on Thursday — a bill that would not only bring back the U.S. federal new-vehicle EV tax credit that expired for most buyers after September 30, 2025, but double it to US$15,000 (approximately C$21,058), according to the bill text on Congress.gov.

Key provisions of H.R. 10881

• New vehicle credit: Both components of the credit raised from US$3,750 to US$7,500 each, for a maximum of US$15,000 (C$21,058) — one-time use only
• Used EV credit: Doubled from US$4,000 to US$8,000, with the eligible share of the purchase price raised from 30% to 60%
• Income caps lowered: Married filing jointly from US$300,000 to US$225,000 (C$315,855); single filers from US$150,000 to US$112,500 (C$157,928)
• Charging infrastructure credit: Increased from 30% to 50%
• Permanence: All three incentives made permanent rather than time-limited

More than 160 House Democrats support the bill, although the Congress.gov record does not yet list cosponsors. It has been referred to the House Ways and Means, Energy and Commerce, and Natural Resources committees.

Internal party division

The proposal is not universally embraced within the Democratic caucus. Senator John Hickenlooper told Politico, "We've got to assess how much momentum and how much benefit we got from it," signaling that some Democrats remain skeptical of large credit programs. The bill also calls for studies examining vehicle affordability, critical minerals, and charging availability along routes used by the country's highest gasoline consumers.

What this means for Canadian buyers

Directly, the bill has no effect on Canadian EV buyers — Canada's own EV Affordability Program (EVAP) offers up to C$5,000 for eligible battery-electric vehicles, set to step down to C$4,000 on January 1, 2027. But a larger, more generous U.S. credit program would widen the effective price gap between the two markets, which could strengthen the case for Canadian buyers to look south for purchases — and put pressure on Ottawa to consider whether its rebate levels keep pace. As of now, the bill is a House introduction with no guarantee of passage.

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