The legislation is expected to be introduced on Wednesday and could give companies like Tesla and General Motors a substantial boost.
The bill is sponsored by Democrats Debbie Stabenow and Gary Peters, Republican Senators Lamar Alexander and Susan Collins and Democratic Representative Dan Kildee. The passage of such a bill could catalyze more purchases of electric vehicles from automakers who are now sinking billions of capital into EVs.
The existing tax credit, which is $7500, phases out over 15 months after an automaker hits a cumulative 200,000 in sales of electric vehicles. GM's tax credit was cut on April 1 of this year and Tesla's tax credit was cut on January 1 of this year. Both credits now stand at $3,750. GM's credit falls to $1,875 in October and will disappear in April 2020, while Tesla's credit drops to $1,875 in July and expires at the end of 2019.