A group of auto retailers — including CarMax, Carvana, as well as multiple franchise and independent dealers — along with various electric vehicle-related industry stakeholders sent an open letter to the U.S. Senate on Thursday urging lawmakers to slow the speed at which EV tax incentives included in the Inflation Reduction Act are being overhauled.

The group contends that “abruptly” ending EV-related incentives from the IRA is a “serious threat to our business continuity and the industry’s long-term investments,” and that it would “introduce significant uncertainty and deter investment.”

More than two dozen auto retailers and industry constituents are included in the letter to the Senate. It was coordinated by Recurrent, the Electric Vehicle Association and Plug.

As of Friday afternoon, the letter has been signed by:

Carmax
Carvana
EV Auto
Burton Auto Group
Winner Subaru & Volkswagen
First State Chevrolet
Carman Ford/Lincoln
Carman Chrysler Jeep Dodge
Campbell Volkswagen of Edmonds
Slipstream Auto
PrivateAuto
Green Wave Electric Vehicles
iDrive1 Motorcars
San Diego Auto Finders
RS Motorsports
HorsePower Motors
Plug

Several EV-related associations and industry stakeholders listed as “other supporters,” including:

Electric Vehicle Association
Wisconsin Electric Vehicle Association
Oregon Electric Vehicle Association
Blue Ridge Electric Vehicle Association
Fox Valley Electric Auto Association
Houston Electric Vehicle Association
Recurrent
MYEV
duPont REGISTRY

“We urge the Senate to consider moderation on the pace of overhauling the critical tax credits that our customers are counting on for new and used electric vehicles and to deploy electric vehicle chargers,” the letter reads.

“Used EV rebates in particular have provided a valuable bridge for working- and middle-class Americans. For car dealerships, these time-of-sale rebates have enabled us to better serve our customers and expand our businesses,” it adds.

“Many of us have built substantial used EV businesses in markets with a lower cost of living, selling to customers who can then reduce their monthly household costs. For many of our working-class customers, the used EV rebate becomes the down payment that enables a vehicle purchase at all.”

The group is calling on the following incentives to continue, “for at least the next several years”:

25E – Credit for Previously-Owned Clean Vehicles;

30C – Alternative Fuel Vehicle Refueling Property Credit;

30D – Clean Vehicle Credit;

45W – Credit for Qualified Commercial Clean Vehicles;

45X – Advanced Manufacturing Production Tax Credit

The letter contends that slowly phasing out the EV incentives, instead of cutting them immediately, is necessary for the well-being of car buyers, dealers and the overall auto industry, while promoting a stable market.

The group cites a forecast from the International Council on Clean Transportation projecting that 130,000 auto manufacturing-related jobs and 310,000 “indirectly related” jobs in the U.S. would be put at risk within the next five years due to repealing IRA provision.

The letter contends that phasing the incentives out over several years, “would also provide the opportunity for Americans to continue adopting cleaner vehicles more affordably. Finally, many independent and family-owned dealerships are depending on the current incentive structure to remain competitive. An immediate repeal could disproportionately affect these businesses, reducing jobs and opportunities in communities nationwide.”

In the letter, the group also applauds the Senate Finance Committee for omitting the House-proposed $250 EV and $100 hybrid registration fee.

They conclude noting, “The undersigned respectfully urge Congress to avoid business-killing abrupt changes to EV credits and to ensure that EV and hybrid penalty fees remain out of any reconciliation package.”