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Trump's Potential Repeal of $7,500 Biden EV Tax Credit Could Reshape Auto Industry

Nov 24, 2024, 12:59 AM

The $7,500 federal tax credit for electric vehicles (EVs), introduced by the Biden administration's Inflation Reduction Act, is at risk of being repealed by President-elect Donald Trump and his Republican allies in Congress. This potential policy change could have significant implications for the auto industry and EV adoption in the U.S. Auto and legal experts suggest that the tax credit, which was designed to incentivize the purchase of consumer vehicles, might be eliminated during tax negotiations next year. If repealed, it would also mean the end of popular leases that allow US consumers to sidestep restrictions on which EV models qualify for incentives.