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Reuters reported that President-elect Trump’s transition team plans to eliminate the $7,500 federal EV tax credit, introduced during the Biden administration, as part of a broader tax reform package.
The EV tax credit, part of Biden’s 2022 Inflation Reduction Act, applies to 15 EVs and six plug-in hybrid models per Car and Driver. Trump has pledged to reverse the IRA, and Democrats’ $369 billion climate legislation supports EV manufacturing, battery production, and renewable energy projects.
Trump has called the Inflation Reduction Act the “greatest scam in history,” but his ability to fully undo it remains uncertain. Despite Republican majorities in Congress, overturning the IRA is unlikely, as much of its funding for clean energy and manufacturing has already been allocated, often to Republican-led states.
Trump cannot unilaterally repeal the IRA but could impose stricter rules on EV tax credit eligibility. This could raise manufacturing costs, making EVs more expensive for consumers.
Donald Trump has vowed to eliminate electric vehicle subsidies and boost the American auto industry’s global standing. Here’s is summary: –
Subsidy Elimination: Trump’s plan includes removing federal tax credits for electric vehicles, which could increase EV costs and impact… pic.twitter.com/P0mxziQJHB
— ChoosyBluesy (@ChoosyBluesy) November 14, 2024
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