Why the Trump administration should keep robust EV tax credits
TLDR: the tax credits are already designed to give a major boost to new American-made EV and battery storage industries and killing the tax credit would probably kill off these new industries before they get a chance to grow up.
Reports are already arriving that the Trump transition team is planning to ax the new and used EV tax credits. This would be a mistake because other than helping to get the US off fossil fuels and clean up our air and water, these tax credits are also designed to promote American industry in a very direct way.
Killing the tax credits would also kill new American industries that will be key for competing in the US and globally.
The EV tax credits, which can be up to $7,500 for next EVs and $4,000 for used EVs, require American-made batteries to receive the full credit. And these requirements ramp up over time, in a way that is reasonably designed to steadily build a massive new American-made battery and EV industry.
The whole world is moving quickly toward EVs, with or without the US. China is already eating our lunch on EVs and BYD has surpassed Tesla as the biggest maker of EVs.
If Trump goes ahead with plans to kill the EV tax credit it may also kill off these new American industries.
That would be foolish for American workers and the American economy.
Let’s hope cooler heads prevail and when the new administration and new Congress are seated in January these tax credits will be allowed to continue.
