Since taking office in January, President Donald Trump has reversed many of his predecessor Joe Biden’s EV-related policies, but interestingly, he hasn’t yet taken action on the existing federal EV tax credit. Plenty of rumors have suggested that the EV tax credit was on his radar, however, though both Ford and automotive lobby groups have asked the President to reconsider killing it off completely. In February, a group of GOP senators introduced legislation aimed at doing precisely that, and now, new comments suggest that the federal EV tax credit could indeed be living on borrowed time.
According to a new report from Bloomberg, House Speaker Mike Johnson stated that the administration will likely nix the federal EV tax credit for consumers. “I think there is a better chance we kill it than save it,” Johnson said. “But we’ll see how it comes out.” Details surrounding plans for energy credits are slated to be revealed later this week, though it seems as if lawmakers are a bit split in regard to reaching a consensus on the future of EV credits, in general.
Some House Republicans have supported keeping at least some clean energy tax credits, some of which have funded the construction of various plants in the U.S. – including more than one being built by Ford. A total of 38 have voiced support for doing just that, while 26 penned a letter asking that nuclear and clean electricity credits be retained. The federal EV tax credit launched as part of Biden’s Inflation Reduction Act (IRA) of 2022, and currently, its 10-year cost is expected to surpass $200 billion.
The Trump administration is working on a large tax-cut package, which is precisely why it’s eyeing the federal EV tax credit. Aside from potentially killing off the consumer credit – which is worth as much as $7,500 toward the purchase of a new EV – such as 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.”
Comments
I would like to buy a Gt500 mustang, could someone give me $7500.00 please!
If you find anyone that dumb, you might as well ask for the cost of the car at the same time.
MAGA is determined to throw things into reverse and sell out to big oil. Meanwhile the rest of the world pulls ahead in EV development.
They should compromise and cut the incentive for vehicles above $40K or so.
Fast-charging on EV’s amplifies need for electricity generation. Incentive has to end, and deserves to be guzzler taxed so household use doesn’t shoulder the extra peak demand burden.
EV absolutists, fake futurists have demanded a giant green albatross on top of forced throw-away designs for thermal engines.
Only acceptable compromise is a strict sun-setting deadline hybrid and plug-in credit, for made-in-USA and less than 20 kwh battery to help level 1 charging.
The tax credit should have never been given to EVs built outside the US. Instead of an EV tax credit, how about a tax credit of $2000 for all vehicles that are built in the US?
AMEN! Right on target.
But Trump’s lover boy Ellie Musk won’t like that.