Federal News
Senator Moreno Requests IRS Accounting on EV Tax Credits
March 19, 2026
Senator Bernie Moreno (R-OH) has formally requested the Internal Revenue Service (IRS) to provide a detailed accounting of taxpayer funds allocated to luxury electric vehicle (EV) tax credits under the Inflation Reduction Act of 2022. This inquiry specifically highlights concerns about the expanded provisions of the tax credits, including the so-called 'Leasing Loophole' that permits claims on leased vehicles that may not otherwise qualify. The request underscores increased scrutiny on fiscal oversight and policy implementation related to EV incentives, which could influence future tax credit administration and compliance requirements.
- Procurement professionals should note potential shifts in IRS enforcement and reporting requirements affecting EV-related tax credits and incentives.
- Contractors and vendors involved in EV leasing or sales may face increased documentation and eligibility verification demands.
- This development signals heightened congressional oversight that could lead to policy adjustments impacting procurement strategies tied to clean energy and vehicle electrification programs.
- Organizations engaged in government-funded EV initiatives should evaluate compliance frameworks to align with evolving regulatory scrutiny.
Following the passage of the Inflation Reduction Act in 2022, there have been significant concerns about the cost of these tax credits. This concern has only grown following decisions made by the Treasury Department to expand the scope of the tax credits, such as by creating the 'Leasing Loophole,' which allows the 45W credit to be claimed on leased vehicles, many of which are not eligible to claim the credit otherwise.
— Senator Bernie Moreno
Agencies
Internal Revenue Service, United States Senate, Treasury Department
Locations
Sources
- Press Releases - Senator Bernie Moreno · Moreno Senate · Mar 13
- Press Releases - Senator Bernie Moreno · Moreno Senate · Mar 19