Quantcast

Koch Industries Lobbies Against Electric Vehicle Tax Credit

Max Pixel

By Dana Drugmand

Koch Industries is calling for the elimination of tax credits for electric vehicles (EVs), all while claiming that it does not oppose plug-in cars and inviting the elimination of oil and gas subsidies that the petroleum conglomerate and its industry peers receive.

Outgoing Nevada Republican Senator Dean Heller introduced a bill in September that would lift the sales cap on electric vehicles eligible for a federal tax credit, and replace the cap with a deadline that would dictate when the credit would start being phased out.


Under the current tax credit for EVs, once a manufacturer sells 200,000 EVs in the U.S. the amount of the credit gets slashed in half, then halved again. The full credit amount is $7,500. Tesla has already hit the 200,000 cap and GM will soon reach it, so both companies would benefit from a tax credit extension via eliminating the sales cap. Heller's bill lifts the 200,000 vehicle limit and substitutes a phase-out period starting in 2022.

But the conservative senator's bill is facing opposition from the conservative billionaire Koch brothers.

In a letter to senators dated Oct. 24, Koch Industries lobbyist Philip Ellender urges opposition to the expansion of EV tax credits through 2022. Ellender claims that the tax credits primarily benefit wealthy consumers and that subsidization interferes with "innovation and consumer choice."

The letter cites two studies, each by a right-wing think tank. One study comes from the Pacific Research Institute, which has received fossil fuel funding—including more than $1.7 million from Koch-related foundations and $615,000 from ExxonMobil. The PRI study, "Costly Subsidies for the Rich: Quantifying the Subsidies Offered to Battery Electric Powered Cars," emphasizes that "the majority of the dollar benefits from energy and electric car subsidies are paid to tax filers in the higher income tax brackets."

The other study is from the Manhattan Institute, another "free market think tank" that takes in money from the Koch network and Exxon. The study paints a misleading picture of EVs and their subsidies.

In addition to citing biased studies by groups tied to Koch money, Ellender claims in the letter, "We do not oppose electric vehicles."

This sentiment echoes the company's 2016 advertorial, in which Koch Industries claimed to be "all for electric vehicles."

Ellender also claims that Koch Industries is against any and all energy subsidies, even ones that benefit the company. According to the letter:

Instead of expanding this subsidy for wealthy EV owners, Congress should eliminate it along with all other energy incentives—including eliminating any incentives given to us and our competitors where we may participate. We are focused on long-term value creation, not short-term windfalls.

In reality, while Koch Industries is claiming publicly to support ending fossil fuel subsidies (along with EV and clean energy incentives), Koch lobbyists have long worked to ensure that the petroleum industry continues to get subsidized.

As Koch vs. Clean previously pointed out, "In a detailed 2011 report on Koch Industries, the Center for Public Integrity wrote: 'Oil is the core of the Koch business empire, and the company's lobbyists and officials have successfully fought to preserve the industry's tax breaks and credits.' The report documented that Koch lobbyists have worked to preserve billions of dollars in oil industry subsidies, including the Section 199 manufacturing tax deduction and the 'last-in, first out' accounting rule."

In fact, according to the International Business Times, Koch Industries has itself directly secured subsidies totaling more than $195 million.

The Koch network also lobbied for the Trump tax cuts that became law late last year. The corporate tax cut is not specific to energy, but it benefits giant corporations including Big Oil and Koch Industries nonetheless. Americans for Tax Fairness estimated that the Kochs would save more than $1 billion just this year from the tax cut—a significant windfall for a corporate behemoth that claims, "We are focused on long-term value creation, not short-term windfalls."

Reposted with permission from our media associate DeSmogBlog.

Sponsored
On thin ice. Christopher Michel / Flickr / CC BY 2.0

The Russian military is taking measures to protect the residents of a remote Arctic settlement from a mass of polar bears, German press agency DPA reported.

The move comes after regional authorities declared a state of emergency over the weekend after sightings of more than 50 bears in the town of Belushya Guba since December.

Read More Show Less

This year's letter from Bill and Melinda Gates focused on nine things that surprised them. For the Microsoft-cofounder, one thing he was surprised to learn was the massive amount of new buildings the planet should expect in the coming decades due to urban population growth.

"The number of buildings in the world is going to double by 2060. It's like we're going to build a new New York City every month for the next 40 years," he said.

Read More Show Less
Sponsored

Over the past few years, it seems vegan cooking has gone from 'brown rice and tofu' to a true art form. These amazing cooks show off the creations on Instagram—and we can't get enough.

Read More Show Less
The USS Ashland, followed by the USS Green Bay, in the Philippine Sea on Jan. 21. U.S. Department of Defense

By Shana Udvardy

After a dearth of action on climate change and a record year of extreme events in 2017, the inclusion of climate change policies within the annual legislation Congress considers to outline its defense spending priorities (the National Defense Authorization Act) for fiscal year 2018 was welcome progress. House and Senate leaders pushed to include language that mandated that the Department of Defense (DoD) incorporate climate change in their facility planning (see more on what this section of the bill does here and here) as well as issue a report on the impacts of climate change on military installations. Unfortunately, what DoD produced fell far short of what was mandated.

Read More Show Less
The Paradise Fossil Plant in western Kentucky. CC BY 3.0

Trump is losing his rallying cry to save coal. The Tennessee Valley Authority (TVA) voted on Thursday to retire two coal-fired power plants in the next few years despite a plea from the president to keep one of the plants open.

Earlier this week, the president posted an oddly specific tweet that urged the government-owned utility to save the 49-year-old Paradise 3 plant in Kentucky. It so happens that the facility burns coal supplied by Murray Energy Corporation, whose CEO is Robert Murray, is a major Trump donor.

Read More Show Less