Incoming Trump Administration to Roll Back Electric Vehicle Tax Credits
The transition team for the incoming Trump administration is making plans for how to eliminate the $7,500 consumer tax credit for electric-vehicle purchases, reports Reuters.
A part of President Joe Biden's Inflation Reduction Act, ending the EV subsidy would be a blow to an already-lagging transition to EVs in the U.S.—something Elon Musk expressed earlier this year.
In an earnings call this past July, Musk said that elimination of the subsidy would only slightly harm Tesla sales, but would be much more damaging for rising EV competitors in the U.S.
In October, the Alliance for Automotive Innovation urged Congress to retain the EV tax credits in order for the U.S. to remain on track as a leader in automotive technology and manufacturing.
The energy transition team, led by oil industry businessman Harold Hamm and North Dakota Governor Doug Burgum, has acknowledged that eliminating the EV subsidy would be difficult, as money has already begun to be dispersed; including in Republican-majority states where they’re being well-received.
