The Federal EV Tax Credit Will Be Eliminated By Trump Administration
President-elect Donald Trump’s transition team is reportedly planning to eliminate the $7,500 federal tax credit for electric vehicle purchases as part of a larger tax reform effort.
The most recent version of the credit was introduced as part of President Joe Biden’s Inflation Reduction Act to encourage EV adoption and is now in the crosshairs of an energy-focused policy group, Reuters reports. The group is headed by billionaire oilman Harold Hamm and North Dakota Governor Doug Burgum.
Ending the tax credit will significantly impact already slow electric vehicle uptake.
Tesla—America’s largest EV manufacturer—has reportedly expressed support for scrapping the subsidy. Tesla CEO Elon Musk has argued that while the move might slightly affect Tesla’s sales, it would have a far greater impact on its competitors, including legacy automakers such as General Motors and Ford, which are heavily reliant on the incentive to market their EVs.
Trump has frequently criticized Biden’s clean energy policies on the campaign trail, including what he calls the "EV mandate." His transition team views the EV credit as an easy target for elimination, especially as part of a Republican-controlled Congress’s broader tax reform efforts.
The move to end the EV credit would be one of the first actions under a new Republican-controlled Congress. By using a legislative tactic known as reconciliation, Republicans could bypass the need for Democratic support, a strategy Biden employed to pass the IRA.
Trump’s energy policy team is expected to finalize its recommendations in the coming months, setting the stage for one of the most significant shifts in U.S. energy and automotive policy in years.
How do you think this will affect the average consumer? Will Trump's potential policy move encourage you to head out and purchase an EV 'tout suite' or are you planning to hold out and see what changes, if any, there are in the combustion market?
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An experienced automotive storyteller and accomplished photographer known for engaging and insightful content. Michael also brings a wealth of technical knowledge—he was part of the Ford GT program at Multimatic, oversaw a fleet of Audi TCR race cars, ziptied Lamborghini Super Trofeo cars back together, been over the wall during the Rolex 24, and worked in the intense world of IndyCar.
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It's about time this thing went away. Let the EV's stand on their own "merits".
My question is, will Trump budget that tax credit money to bail out the management of U.S. automakers who spent tens of billions of dollars on this fiasco? Also, will the prices of ICE vehicles drop now that there will be no need to make them "comparable" to EV prices?