Joe Biden answers questions from reporters after driving a Jeep Wrangler Rubicon Xe in the White House driveway after speaking at an event on the South Lawn of the White House on August 5, 2021 in Washington, DC. President of the United States. Efforts to strengthen U.S. leadership on clean cars and trucks.
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President-elect Donald Trump’s transition team plans to eliminate the $7,500 consumer tax credit for electric vehicle purchases as part of sweeping tax reform legislation, two people with direct knowledge of the matter said. person told Reuters.
Ending the tax credit could have a significant impact on America’s already stalled EV transition. Still, representatives of tesla The country’s largest EV seller told the Trump administration’s transition committee that it supports ending subsidies, two people familiar with the matter said on condition of anonymity.
Elon Musk, one of President Trump’s biggest supporters and the world’s richest man, said earlier this year that eliminating subsidies could hurt Tesla’s sales slightly, but that the U.S. EV competitors (among them: general motors.
Eliminating subsidies, the centerpiece of President Joe Biden’s Inflation Control Act (IRA), is a major step toward eliminating subsidies for the energy industry, led by billionaire oilman Harold Hamm, founder of Continental Resources, and North Dakota Governor Doug. This is being discussed at the Policy Transition Team meeting. Two sources close to Mr. Burgum said this.
Joe Joe looks at a Chevrolet Silverado electric vehicle with General Motors CEO Mary Barra while touring the 2022 North American International Auto Show at the Huntington Place Convention Center on September 14, 2022 in Detroit, Michigan. President Biden. A show focused on electric vehicle manufacturing.
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The group has met several times since Trump won the Nov. 5 election, including Tesla CEO Elon Musk, who has spent considerable time following the election. This includes a meeting at the Mar-a-Lago Club in Florida.
Representatives for President Trump’s transition and Tesla did not respond to requests for comment.
The Alliance for Automotive Innovation, an industry group representing nearly every major automaker other than Tesla, also did not immediately respond. Last month, the coalition urged Congress in a letter dated Oct. 15 to preserve the EV tax credit, saying it is “critical to solidifying America as a global leader in the future of automotive technology and manufacturing.” He claimed that.
President Trump repeatedly promised during the campaign to end Biden’s EV mandate, without specifying which policies he would target. The energy-focused transition team said it is likely that Biden’s IRA’s clean energy policy will be a part of Biden’s IRA, given that the program has already begun distributing money, including in Republican-dominated states where it is popular. Officials said it was determined that it would be difficult to withdraw the department. .
President Trump’s energy transition team sees consumer EV credits as an easy target, believing their repeal could garner broad consensus in the Republican-controlled Congress as part of a sweeping tax reform bill. .
Elon Musk listens to a speech by U.S. President-elect Donald Trump during the House Republican Conference at the Hyatt Regency on Capitol Hill in Washington, DC, on November 13, 2024.
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President Trump will need to save money by extinguishing the credit to pay for an extension of trillions of dollars in tax cuts that are set to expire at the beginning of his term, two sources said. Congressional Republicans plan to take broader tax action as one of their first actions.
Energy Transition Team members expect the Republican Congress to introduce legislation known as “reconciliation” to avoid relying on Democratic votes. Biden used the same tactic to get the IRA bill passed.
Repealing the EV tax credit is strongly supported by Mr. Hamm, a longtime Trump supporter, and much of the broader oil and gas industry.
The president-elect promised before the election to increase production even as U.S. oil production is at an all-time high and scale back President Biden’s costly clean energy efforts. In addition to EV financing, this includes subsidies for wind and solar power generation and mass production of oil. hydrogen.
