Working to ensure a flourishing, mature, cost-competitive U.S. EV market 

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Economic and environmental benefits

Automobiles are an iconic and integral part of the American way of life. Electric vehicles allow Americans to continue enjoying the freedom of mobility and the pursuit of economic advancement, without increasing dependency on foreign oil and without creating tail-pipe emissions that pollute our air.

Electric vehicles (EVs) offer tremendous economic and environmental benefits to the U.S. To support the adoption of EVs, Congress passed a tax credit to help kick start a new era in mobility and support consumers in their purchase decisions.

Without a reformed tax credit, consumers may be disincentivized to consider purchasing electric vehicles

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Unbalanced market incentives

If the U.S. is going to continue to produce, purchase and drive new electric vehicles at a large scale, policymakers need to reform the current tax credit for electric vehicles. The original tax credit has been a successful incentive so far, but the market is far from fully mature. And its cap on the number of consumers who can use the tax credit per car manufacturer has created unbalanced market incentives and will soon limit options for consumers in the EV market. Without a reformed tax credit, and while there are still limited models available, consumers may be disincentivized to consider EVs at all, and the market may contract – putting American jobs and our position as a global leader in the EV market at risk.

The EV Drive Coalition is made up of supporters of EVs and a reformed EV tax credit. Together we are working to ensure a flourishing, mature, cost-competitive U.S. EV market. 



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Statement by Trevor Francis, EV Drive Coalition >>

27 November 2018

The federal consumer EV tax credit helped catalyze the EV market, boosting the manufacturing economy while increasing consumer demand and growing the deployment of an efficient alternative to traditional automobiles that helps to reduce greenhouse emissions while providing energy independence.

The current EV tax credit, which goes directly to consumers, creates an uneven playing field by establishing a cap on the number of consumers who can use the tax credit based on which manufacturer made the car. The U.S. EV market is at a critical crossroads as manufacturers begin to hit that cap; the EV tax credit should be reformed so all EV purchasers continue to receive the benefit of EV tax credits.

Federal policy spurs innovation and promotes investment in groundbreaking but nascent industries. Without continued and reformed incentives for EVs in the U.S., we run the risk of being left far behind in the automotive market of the future. Any attempt to remove the tax credit threatens nearly 300,000 jobs across 48 U.S. states that depend on EVs and cedes future U.S. automotive leadership in a sector that is a driver of economic growth, environmental sustainability, energy security and global competitiveness.

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