WASHINGTON, D.C. — A government report found that millions of taxpayer dollars were wasted on potentially erroneous electric car credits for people who didn’t really qualify for the money.
The Inspector General report found that more than 16,000 people received $73.8 million in improper plug-in tax credit claims from 2014 to 2018.
Drivers with qualified electric vehicles can get a tax credit of up to $7,500 per person.
"This really is a failure of the IRS,” Executive Vice President for Taxpayers for Common Sense, Steve Ellis, said.
The report found the IRS didn’t keep a close enough watch on the vehicle identification numbers submitted in the claims.
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"If you're not checking your work, then you're going to have errors,” Ellis said. “That's a simple matter and we're talking about tens of millions of dollars that are lost every year."
The people who are eligible for the plug-in tax credit must have an electric car made by a manufacturer that falls under the Clean Air Act. It must be owned or for sale, not for resale and it must weigh under 14,000 pounds.
The IRS said it has adjusted its system to keep better track of the claims and said there is a program in place to try and recover the money.
"It's on the books, it should be administered properly,” Ellis said.
More than 200,000 electric cars are on roads across the United States.
Electric Drive Transportation Groups have testified on Capitol Hill pushing for policies to encourage the use of renewable energy.
“The direction of the market is clear,” Electric Drive Transportation Association President Genevieve Cullen said to the House Committee on Energy and Commerce last year. “Electrification will shape the future of mobility.”
The IRS said the president’s proposed budget would eliminate the plug-in tax credits.