Official announcement or legislative record from the U.S. government

Trump's Plans to Repeal $7,500 EV Tax Credit Could Transform Auto Industry, Impacting Biden's Climate Agenda and Massachusetts

Nov 25, 2024, 02:37 PM

The auto industry is poised for significant changes following the election of Donald Trump as President. Reports indicate that Trump plans to repeal the $7,500 federal tax credit for electric vehicles (EVs), a key incentive introduced by the Biden administration's Inflation Reduction Act. This potential repeal could have far-reaching implications, as many consumers rely on this credit to offset the high costs of EVs. Additionally, Trump aims to dismantle other climate-related regulations and tax incentives established by his predecessor, which could hinder the transition to electric vehicles in states like Massachusetts. Critics argue that eliminating the tax credit may undermine investments in U.S. battery supply chains, as it compels automakers to source battery materials from outside China. The move could also disproportionately benefit companies like Tesla, which may face less competition in the absence of the subsidy.