President-elect Trump is reportedly moving to eliminate the Biden administration’s $7,500 consumer tax credit for electric vehicles (EVs). The move will likely have a major impact on the ongoing transition from internal combustion engines to electric mobility. This proposed repeal is part of a larger tax-reform strategy expected from Trump’s upcoming administration, targeting various clean energy policies introduced under President Biden’s leadership.
The EV tax credit, a cornerstone of Biden’s Inflation Reduction Act, has been crucial in making electric vehicles more accessible in the United States, although consumers continue to point to high prices as a major hurdle to widespread adoption.
However, according to a report by Reuters, representatives from Tesla support the repeal. Tesla CEO Elon Musk, who has been vocal in his support for Trump’s re-election bid, acknowledges that while ending the tax credit could impact Tesla sales, he believes the loss of the subsidy will more acutely impact legacy automakers racing to build competitive EV lineups. That includes General Motors, which has committed to transitioning to an all-electric lineup by 2035, but could face additional challenges without the federal tax credit to support consumer affordability.
The Trump energy policy transition team, reportedly led by oil and gas mogul Harold Hamm and North Dakota Governor Doug Burgum, has already held discussions on repealing the credit. The move aligns with Trump’s campaign promises to support domestic oil production and roll back clean energy incentives.
Meanwhile, the Alliance for Automotive Innovation, which lists several mainstream automakers as members, including GM, has yet to issue an official statement on the expected EV tax repeal. Previously, the Alliance described the EV tax credit as “critical to cementing the U.S. as a global leader in the future of automotive technology and manufacturing.”
With a Republican-majority Congress likely to back the EV tax repeal, alongside strong support from the oil and gas industry, the EV tax credit appears poised for elimination. The move would mark a significant policy shift and will likely slow the momentum of EV adoption across the U.S., even as adoption rates remain low.
Comments
Good, let our economy and demand for products grow organically instead of the government giving handouts camouflaged as credits and grants which only makes things more expensive. An EV instantly loses $7,500 in resale value as soon as it is purchased with this credit available.
I purchased an ev in 23′ my income disqualified me for the $7,500 tax credit which I only found out at tax time.
Subsidies are direct payments to sellers. Without the subsidies, the prices will fall equivalent to the subsidy. Basic Macro economics, proved time and time again by the markets. End them tomorrow.
nonsense
Jays: That’s fine. But they must also end any and all incentives and subsidies for big oil and the gas companies too. Of course this lost GOP won’t ever do that, but if they did I’d love to see the look on your face when it costs you much more every time you pump more poison into your vehicle.
these people believe the only subsidies that exist in the entire “free market” are for Evs. Also how is is free market to have the owner of a major competitor influencing policy in order to sink his rivals. Remember, the $7500 rebate applies to Tesla just like everyone else so it is not putting Tesla at a disadvantage. Also everyone is forgetting that you have to meet battery sourcing requirements as a way to drive investment in US supply chain. Get rid of this and companies will stop worrying about having US based battery development and find the cheapest foreign batteries they can.
syj215: The vast majority of people on this site are anti anything EV and most of them have probably never ridden in one let alone driven one for a few days. So people like you and I are totally wasting our time on this site putting up factual stuff. They are so closed minded that they can’t see the forest because of the trees.
I’m all for them dropping the $7,500 credit IF and ONLY IF they also play fair and do the exact same thing with big oil/gas. And if they do, boy will they people on here begin to cry a river when filling up their huge gas hog SUV’s and trucks. But for that to happen would require a complete transformation of the GOP. Will never happen.
excellent point, this place is full of old school GM fans who are stuck in a different era. Its amazing because these folks have no idea how there is a network of GM ev owners that is growing day by day with the current products and many of them are being converted to EV fans and most of them have no plans to get ICE vehicles. The folks here want GM to be stuck in the past and get left behind. Im glad Barra doesn’t pay any attention to this crap.
Factual stuff:
Range pulling a boat or an RV
Range in 100 degree heat and -20 cold.
Lack of charging stations
Time to recharge
Cost of electricity (especially in California)
Reliability of electricity (especially in California)
Cost of a home fast charger
That is a false equivalency. Petroleum products don’t need subsidies to sell or be profitable. Your argument also falsely assumes battery production doesn’t involve “poison”.
is the 2025 equinox starting at $35k evidence of the tax credit driving up prices? Let me know
It’s evidence of GM selling at a loss to look like their forwarding the agenda.
the more they sell, the more economies of scale they get and the faster they move towards EV profitability. And that doesn’t answer my question- is the affordable equinox evidence of OEM price gouging on Evs?
Agree, I’m tired of my tax dollars helping to pay for someone else’s EV.
@Jays
I agree. Let the market decide.
So you agree that we should end Oil Subsidies which make these $7500 Rebates look like a rounding error correct?
😍😍☺️
He is a true patriot. God bless.
Except for the part where he negotiated with the Taliban of all people.
Hell yeah!
Forget about all the EV plants that were being planned for those southern red states. There’s no longer a need for the foreign manufacturers to build those plants to be able to sell their vehicles with that credit. Thousands of jobs lost. Oh, and the required US supply chain required for to earn the credit. More jobs gone.
Easier for the foreign manufacturers to just import.
No worries, there will be thousands of job openings for Americans when Trump rounds up all our manual labor agriculture workers and sends them back home……Say hello to even higher grocery prices in the near future.
So you support those who enter the country illegally and take jobs from American workers?
And apparently slave labor.
If you’re really worried about a career in picking strawberries, then you might have a point.
LOL
people are taking fruit picking jobs from your kids? Wow
So you’re saying crop gathering is the only jobs being taken by illegals or all crop gatherers are illegals? If that’s the case it should make it easier to gather them for deportation.
Do you mean the jobs that Americans won’t do?
I worked on a farm while I was in college. Paid very well compared to slinging coffee at Starbucks.
so your friends and family are striving for a lucrative career in farm field work? YOur kids plan to do that for a living? Great benefits and prospects for upward mobility. Everyone I know is jealous of those folks. Also, the US population is just flocking to rural america lining up for all the opportunity in crop gathering.
You’re an ignoramus. The agricultural laborers (mostly from Mexico) will not be affected, unless they are convicted criminals. They great majority of Biden’s influx of illegals have come from Venezuela and other Latin American countries, as well as Chinese illegals, Muslim agitators or spies (including those on the terror watchlist). Hey Genius, didn’t Trump get a record number of Latins to vote for him? Duh.
All illegals are to be deported over time, this has been stated many times. Each one of them is a criminal and thus all should expect to be deported according to the new admin. You better wake up.
When is illegal not illegal in your world? Is it when Democrats decide to ignore laws they don’t like and subsequently concoct reasons to defend not liking them?
That’s the distant sound of anarchy, but hey, Democrat good…Republican bad….and laws we Democrats disagree with must be ignored.
You’re actually advocating for ignoring or breaking laws because 1) your fee-fees might get hurt, and 2) you’re a lefty.
I was told all the people sitting at home playing video games in their parents basement were going to fill those farm jobs as soon as the deportations start.
We’re not going to find American workers doing backbreaking agricultural work for those low wages and no benefits. You’re dreaming but, on the other hand, maybe you should apply!
Why do people assume migrant farm workers are illegally in the country? They have been permitted to enter for this work for as long as I’ve been alive. Migrant farm workers aren’t going to be deported unless they overstay their work visa, so stop with the silly rhetoric
I seriously doubt there will be any new assembly facilities in the SE US. The US worker wages and medical insurance is just too high. If that were the case, then why have Toyoda, Honda, Nissan, and Hyundai newest assembly plants are in Mexico?
hyundai is just now opening a huge plant down south……
Just all the more jobs for existing plants in the Midwest and south. The companies were going down the perilous road of overcapacity yet again- talk about the Lemming Effect. BTW, there is probably going to be tariffs extended for cars imported from other countries so a lot of that production will meander back to the USA,
If I had money to burn, I’d buy a Hummer EV and keep it in an environmentally-controlled environment with the battery always charged at 50%. Given the recent downturn in EVs, it will take at least 5 years (regardless of party) before EVs become viable and they might look very different from the ones we have today. In 20-25 years from now, the first generation of EVs we have today will be viewed very fondly as collectibles and fetch a good price.
But alas, I have no money to burn.
The full transition to EV’s in this country will take decades. For every EV that is being sold, there are still thousands of new ICE vehicles being sold.
EV sales for the third quarter in the U.S. were 8.9% of total vehicle sales.
lie. Evs are about 9% of the new car market so the ratio is 10:1. And that is only if you lump hybrids and plug ins with regular ICE cars. If look at only cars with an engine only vs other types the ratio is probably like 60/40 or 70/30.
If you remember, Trump said no sales tax on cars built in the US. If he does that incentive at the same time the EV tax credit is removed, the change should be that bad.
So he wants to add a national sales tax? Would have to be 10% or more to offset the EV credit. And now that sales tax will be on all ICE models as well.
People were so conned when he told them he was going to put more money in their pockets.
Your money is going to buy even less in the next 6 months.
Nothing wrong with the a national sales tax as it is simply a consumption tax – the more you spend, the more you pay. In general, the rich will pay more. There is no way this tax comes about without a commensurate cut in federal taxes – so not really “adding” as you say.
you really think this has a snowball’s chance in hell in becoming reality? There will be absolutely no new tax of any kind over the next 4 years. and no real changes to make the tax code more fair. Come on now.
I too was confused about how trump could repeal a national sales tax on cars that isnt in existence. That must be magic.
When did he say that? All I remember is a tax write off for auto loan interest.
we dont pay US sales tax on cars now…….
There is No federal sales tax on cars and trucks. tRump has no control over state sales taxes.
Drill baby drill
yessir, because under comrade Biden we have totally stopped producing oil which is why gas is $6/gallon
Uh, it’s $2.59 here. So tired of seeing the word “comrade”, especially since Trump is so buddy-buddy with 2 ACTUAL Communists.
From the web: “The United States’ crude oil and lease condensate proved reserves increased 9% from 44.4 billion barrels to 48.3 billion barrels at the end of 2022. The US also saw a 6% increase in crude oil and lease condensate production in 2022. ” So there.
I have mixed feelings about this. I am a firm believer in EVs should be a choice not a mandate and that the automakers need to be actively bringing down the costs as we can’t keep doing this EV credit subsidized by our tax dollars nonsense forever.
However, the part of Tesla (most notably Elon) pushing for it to be removed concerns me. To me, his support for removing the tax credit comes off as an attempt to kneecap his competition and attempt a monopoly on the American auto industry. I trust Trumps reasoning on getting rid of it to not put the burden on taxpayers for rich people to buy them, but I don’t trust Elon. He just strikes me as a shady car salesman looking to play the most dirty game possible to make money even if it means putting legacy automakers out of business so he can dominate on his own. I don’t know. Somebody help me out here if I am missing something or am seeing this the wrong way.
On the other hand though, despite Elons arrogant comment of “well I’ll be ok. Sucks to be the other guys though”, the Equinox EV is a perfect case that GM atleast is more than capable of producing an EV that’s competitive and affordable while being roomy. I was pleasantly surprised as to how roomy and well equipped it was for the price. So removing the tax incentives shouldn’t affect sales of this model atleast.
elon dont give a damn about the EV industry at large
He definitely doesn’t want foreign makers competing with Tesla. I have a problem with China dumping cars on us, but I think tariffs can backfire, too.
Tariffs most definitely backfire. They cause the price of locally produced goods to go up, happens every time. Just like the make believe story of “trickle down economics”.
What ended up happening with the subsidies, the car companies just raised the prices of their respective EVs by $7500 or more in order to gouge the consumer and maximize their profit margin at the expense of the American taxpayer. I am sure the EV prices will come down and the companies will not be hurt.
flat out lie. In fact a decent number of Evs dont qualify for the tax rebate
OK, genius, another lesson in economics for you. Any time the government subsidizes something, the price always goes up. Why do you think college tuition has skyrocketed significantly higher than the rate of inflation? I know the answer, let’s see if you do.
Dont lecture me. The interstate highway system was subsidized and built by the government to provide free, fast, safe travel. It was and continues to be cheaper than any turnpike travel. Public transportation is subsidized and costs are kept accessible as a result, if public transportation was privately run with no subsidies it would be so expensive it wouldn’t even be viable. And my point still stands, a large % of Evs dont qualify for the damn rebate.
do you understand what the word mandate means? Do you know that a tax incentive is not a mandate- hell if you had a mandate you would’t bother with an incentive to convince people to consider something- you would just say no more gas cars.
Thank you. I’ve looked at the House and the Senate websites for active and/or pending legislation. Guess what? There is NO MANDATE to switch to EV’s that has been introduced or has been passed. Typical FauxNews propaganda-fake news BS. Right up there with Mexico paying for the wall.
these folks are liars, no surprise there
I certainly don’t think Elon is shady. Remember, he bought Twitter at an exorbitant price, just to kindle the pushback against the left’s censorship…….and then cut 80% of its workforce without the company missing a beat.
well that settles it. And nothing shady about using your influence to sink a tax credit that will sink your competitors. Great point. he is a model citizen. Do you love him or or less than Trump? Which one is more holy?
Good even better.
We will see if its cut. The Oil companies who donated to try to slow EV, it won’t happen as it’s growing too fast. I think GM will be totally fine as they have a large and diverse supply chain and GM EV production is way up , plus they have ICE ( Gas Cars) that ELON does not to offset the loss. Wow I can’t believe Elon wants this credit to go away. This shows he only cares for his company not the environment.
Nobody corporation cares about the environment. Saying you do is part of virtue signalling 101 right up there with DEI and wokism.
nobody?
All the people here who are getting hype need to understand this is an idea, a proposal, its not law. It would have to incorporated into a 2025 tax cut law and its highly unlikely a total repeal will ever make it through the senate, especially when you need 60 votes for most things.
Thank you Mr Trump !!
nothing has happened yet
The oil and coal companies receive at least $20 billion a year in federal subsidies and this is a conservative estimate.
prepare to get flamed, this is Merica baby, we don’t want any feminine EVs
To all those that dont want their tax money going to EVs then I say this. Please stop spending hundreds of billions of our tax money stationing our military in the MEast so your gas guzzling trucks and cars can have cheap energy because the shipping of oil flows freely but won’t once we move out of there. And your local big oil will gladly screw you on pricing ongoing by drill baby drilling not to mention the now decades of oil drilling writeoffs they have and continue to do. Then I am ok and we are all on an equal playing field. And btw the tax credit is simply giving back moneys back of up to what I PAID in unlike a child care tax credit where you get money even if you paid nothing. OK go….
What😳🤪
Good kill it and kill it now.
Let the CARB states forcing EV pay this.