We Need a Functional EV Tax Credit System Backed by Sound Policy

Electric vehicle supply and demand has gone from one extreme to the other. A few years ago, EVs were selling for thousands of dollars over sticker price. But the logjam has cleared, and EVs are piling up on dealer lots.

One major cause is a broken EV tax credit system. Credits are nonrefundable, which limit the extent to which lower-income households can take advantage of them to offset vehicle purchase price. And material sourcing requirements drastically limit what vehicles qualify for the credit at all.

The interplay between requirements means people are waiting either for a vehicle they want ...