As Ford Authority previously reported, the Trump Administration has long been mulling the idea of killing off the existing federal EV tax credit, which provides consumers with either $3,750 or $7,500 off the purchase of a new, eligible electrified vehicle. However, Ford is now enlisting former GOP Representative Ryan Costello to lobby his colleagues in an attempt to keep the federal EV tax credit alive.
According to Politico, the automaker asked Costello last week to “advocate for protection of IRA 45X tax credit, Foreign Entity of Concern language considerations and related IRA provisions,” info it obtained via a disclosure filing, as well as for help on topics including tariffs and trade. Ford was also one of 40 companies in Michigan that penned a letter to the state’s congressional delegation.
That letter stated that federal EV tax credits “have helped us stay competitive in a rapidly evolving national and global market, where states and countries are making major investments to support automotive manufacturing, advanced energy, energy efficiency, and critical grid services. Without these critical incentives, our businesses will face significant challenges – hindering expansion, slowing job creation, and jeopardizing Michigan’s leadership in the future of energy and mobility.”
A group of senators recently introduced new legislation that would not only repeal the existing federal clean energy tax credit for new and used models, it would also end federal investments in EV chargers, and cease credits for leased electric vehicles. Another bill proposes a one-time $1,000 fee that EV buyers would be required to pay at the time of purchase too, which is basically the equivalent of what ICE vehicle owners pay in federal gas taxes over the course of 10 years of ownership. Currently, 24 different U.S. states charge a higher annual vehicle registration fee for EVs and some hybrid vehicles to help offset “lost” gas tax revenue.
Ford CEO Jim Farley has stated on multiple occasions that these tax credits are crucial in the automaker’s quest to build out its EV plants and sell more vehicles, though he also wasn’t so sure if Tesla CEO and Trump advisor Elon Musk would be able to save them. Along with The Blue Oval, the Ford-backed lobby group Alliance for Automotive Innovation also recently penned a letter to Trump asking him to keep these federal EV tax credits intact, too.
Comment
I have a better idea. Let’s claw back all the money we wasted on the EV debacle. If you got an EV rebate in the past, then you get an additional tax liability this year. Have fun with that.