Trump Expected to Attempt Repeal of Tax Credits for Electric Vehicle Discounts

Reports suggest that the Trump administration is attempting to eliminate electric vehicle tax credits that provide discounts of up to $7,500 for new electric vehicles. This request is not entirely unexpected, as President-elect Donald Trump flirted with the idea of ending the electric vehicle tax credit throughout his campaign.

If the electric vehicle tax credit is repealed, it would represent a significant setback for the American automotive industry's efforts to transition to electric vehicles. General Motors, Ford, and other legacy automakers have invested billions of dollars to establish electric vehicle plants and battery facilities in preparation for an electric future. The Automotive Innovation Alliance, the trade group for the automotive industry, has specifically lobbied lawmakers to protect all subsidies aimed at electric vehicle production under the Biden administration.

To eliminate the subsidy, Trump will need Congressional approval, which is a key component of the Inflation Reduction Act signed by Biden. It has also been suggested that Trump's transition team has determined that rolling back some policies in the law might be challenging, given that funding has already begun for some programs, including those in Republican-majority states.