With Donald Trump winning the 2024 U.S. Presidential election, there are many unanswered questions pertaining to potential policy changes in the automotive world. Trump has previously spoken negatively about electric vehicles, for example, promising to roll back zero-emissions mandates while also mulling the idea of imposing tariffs on vehicles imported from countries like Mexico. Now, a new report claims that Trump will also kill the current federal EV tax credit that just took effect as part of the Inflation Reduction Act (IRA) of 2022.
According to Reuters, Trump’s energy-policy transition team is specifically eyeing the EV tax credit as part of broader tax-reform legislation. During his campaign, Trump stated that he wanted to end this EV tax credit on multiple occasions, instead using funds allocated for that purpose to extend tax cuts that are slated to expire in the coming months. As Ford Authority previously reported, around $2 billion in these EV tax credits were claimed by Americans between January and the end of September.
However, some Blue Oval models lost their eligibility for the EV tax credit at the start of 2024 – the Ford E-Transit and the extended range Ford Mustang Mach-E (though standard range models get half the credit). The Lincoln Aviator Grand Touring is eligible for the full credit (though it’s been discontinued for now), while the Ford Escape PHEV and Lincoln Corsair Grand Touring get half of that sum. Commercial buyers are eligible for commercial tax incentives of as much as $7,500 on all these vehicles, too, as is the case with the Ford F-150 Lightning, which is still eligible for the full EV tax credit. Soon, the Mustang Mach-E extended range models will rejoin this list, after The Blue Oval and LG Energy Solutions move NCM battery production from Poland to Holland, Michigan.
Killing off the EV tax credit could have a big impact on already-softening EV sales for companies like Ford, regardless, which recently cut back F-150 Lightning production yet again amid weak demand. It could also impact the plans of companies such as China-based CATL to build EV battery plants in the U.S as well, a move that it was considering as a way to circumvent higher tariffs and build units eligible for the tax credit.
Comments
Dump the tax credits & let the EV’s sink on their own!
And we can get rid of E10 also.
Bring back 100% gasoline at every gas station.
Good. And I don’t like most of his ideas, but this one I do.
So, cancelled factories, less jobs in the US, more in China. China continues to beat us in battery tech.
Really feeling all the winning.
Not to worry. there will soon be a 100 percent tariff on all Chinese built vehicles coming to the United States.