Since taking office in January, President Donald Trump has taken action on more than one occasion to undo things that his predecessor, Joe Biden, executed during his term, most of which pertain to electric vehicles. We’ve known for some time that the Trump administration was considering the elimination of the existing EV tax credit as well, as back in February, a group of GOP senators introduced legislation aimed at doing precisely that. Earlier this month, House Speaker Mike Johnson strongly hinted that such a move was in the works, and now, the House has officially voted to nix the EV tax credit.
According to the Associated Press, the House of Representatives has voted to pass a comprehensive package of tax breaks, which includes some cuts to compensate. One of those cuts is the existing EV tax credit, which would end after 2025, though automakers who have sold fewer than 200,000 qualifying vehicles thus far would receive a one-year exception. Currently, few models actually qualify for the EV tax credit due to increasingly stricter requirements in terms of raw materials sourcing, but much of those funds have also gone to under-construction EV plants – including some owned by Ford.
Aside from potentially killing off the consumer credit – which is worth as much as $7,500 toward the purchase of a new EV – such a move could impact automakers like Ford in other ways, as it’s in the midst of building EV plants using federal funds. “It would be a significant impact for our industry if it goes away,” CEO Jim Farley previously stated. “Many of our plants in the Midwest that converted to EVs depend on the production credit.” This particular package must still pass through the Senate before taking effect, but Trump has stated that he will indeed sign it once that’s complete.
In addition to working to eliminate the federal EV tax credit, the U.S. Senate just voted to revoke California’s ability to set an EV mandate and its own independent emissions rules earlier this week, as Ford Authority previously reported – potentially nixing the state’s right to ban the sale of pure ICE vehicles by 2035, though a legal battle over this matter is likely to take place.
Comments
Each State has its own laws and authority. Neither the idiotic President nor his Republican goons can change that.
Supremacy Clause of the US Constitution, might want to educate yourself. The Federal Government also has the Constitutional authority to regulate interstate commerce. It doesn’t make sense to have States set their own emissions standards; it’s highly unpractical as we are seeing play out.
I’m glad to see Donald Trump and MAGA taking down the corrupt cabal and restoring our Constitutional Republic.
Let the market dictate what technology wins out as it always should have.
Good luck with your TDS, maybe a few more years of winning will cure you.
You want to talk idiotic presidents your side wins hands down.
Just keep spreading the BS and fearmongering. That’s all the left has to run on anyway.
This is why Jim should of been removed from Ford years ago, losing billions on EVs, relying on government handouts to convert auto plants!concentrate on hybrid vehicles, we don’t want or need EVs!!!! Give me $7500 and I’ll buy an F250 diesel, great fuel mileage, tow anything and last for years, try that with your Duracell vehicle!