Rep. Dean Phillips (MN-03) has introduced a bipartisan bill aimed at promoting electrification in the off-road vehicle market. H.R. 9481, the Michael F. Donoughe Tax Credit for Off Road Electric Vehicles Act, would make electric vehicles more affordable via an end-user tax credit, similar to what already exists for automobiles, for consumers, farmers and small businesses to purchase electric off-road vehicles for work and recreation. Currently, less than 1% of off-road vehicles on the market are electric.
If enacted, the Michael F. Donoughe Tax Credit for Off Road Electric Vehicles Act would create a federal tax credit equal to 10% of the purchase price of a new qualified plug-in electric off-road vehicle, up to $2,500. Qualified off-road vehicles include:
- Off-highway vehicles designed primarily for non-road use and travel over rough terrain
- Vehicles propelled primarily by an electric motor which draws electricity from a battery with a capacity not less than 6 kilowatt hours
- Vehicles that achieve a speed of 40 mph
- Vehicles that weigh less than 3,500 lbs.
- Vehicles that are assembled in North America
- Vehicles that are purchased after Dec. 31, 2022.
The legislation is named in memory of Polaris Chief Technology Officer Mike Donoughe, who spearheaded electrification for Polaris, a Minnesota-based company.
