Trump Administration Seeks To End Subsidies For Electric Cars And Renewables
President Donald Trump wants to end the Obama-era tax credit that helps Americans purchase electric vehicles, according to his top economic adviser — but it remains unclear just how the White House would manage such a feat.
White House National Economic Council Director Larry Kudlow told reporters on Monday that the federal tax credits “will all end in the near future,” giving the timeline of 2020 or 2021.
But Bloomberg News noted that the incentives were created by Congress, making it highly unlikely that Trump could eliminate them by executive order.
Kudlow didn’t provide details on what the White House would to do eliminate or change the electric car tax credits, which would require an act of Congress. Experts doubt the sweetener can be changed by executive order.
Currently, consumers who buy plug-in electric cars are eligible for a $7,500 federal tax credit, which begins to phase out after for each manufacturer after selling 200,000 eligible vehicles.
“We want to end, we will end those subsidies and others of the Obama administration,” Kudlow said.
Electrek noted that Republican lawmakers have expressed mixed feelings over the subsidies:
Republican Senator Dean Heller, who introduced the pro EV tax credit bill that would see it extended instead of capped, was defeated in the mid-term elections earlier this month.
With those two distinct bills, the Democrats regaining control of the House, and Republicans expanding their majority in the Senate, it’s really unclear what will happen of the EV federal tax credit.
The issue of eliminating the tax credit was raised by Trump after General Motors announced it would close several plants and cut thousands of jobs last month.
Trump said in a tweet last week that his administration is "now looking at cutting all @GM subsidies".