Trump Administration Seeks To End Subsidies For Electric Cars And Renewables

State Department photo/ Public Domain

President Trump wants to end multiple Obama-era subsidies, though it remains unclear how much authority he has to do so.

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:

Last month, a Republican senator introduced a new bill to end the $7,500 federal tax credit for electric cars and tax them even more instead.

But a few days later, another Republican senator proposed a new bill to remove the federal tax credit cap for EVs and expand it to 2022.

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".

Comments
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ScottW
ScottW

There are plenty of reasons why you should be okay with contributing a miniscule amount of your tax dollars to help achieve a goal that most world leaders support and most experts believe to be necessary, but to see them you would have to look beyond yourself and your money. Just curious, do you feel the same way about military spending, which consumes more than half of discretionary spending?

10magshooter
10magshooter

I see no reason that I as a non driver should subsidize the elite to purchase an overpriced vehicle that runs on what is in the end very expensive energy compared to fossil fuel.