8VC Managing Partner Joe Lonsdale joins Mornings with Maria to discuss Donald Trump’s Cabinet picks and their impact on the political agenda.
President-elect Trump’s transition team is considering eliminating a $7,500 federal tax credit for electric vehicles enacted during the Biden administration, Reuters reported on Friday.
The newspaper reported, citing two people familiar with the situation, that Trump’s team plans to eliminate the EV tax credit as part of a larger tax overhaul.
President-elect Trump’s transition team is seeking to eliminate federal tax credits for EV purchases, Reuters reported on Friday. (Chip Somodevilla/Getty Images/Getty Images)
FOX Business has reached out to Trump’s transition team for comment.
Tax credits for the purchase or lease of certain EV and plug-in hybrid models were passed as part of Biden’s signature Inflation Control Act of 2022. According to Car magazine, there are 15 EV models and six plug-in hybrid models eligible for government subsidies. And the driver.
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For months, President Trump has been a Democratic centerpiece, allocating $369 billion in subsidies aimed at reshoring investments in EV manufacturing, battery production, and new utility-scale wind and solar projects. He has vowed to “repeat” the IRA, the variable and clean energy spending bill.
President Biden will sign the Inflation Control Act of 2022 on August 16, 2022. (Demetrius Freeman/Washington Post via Getty Images/Getty Images)
President Trump has described the law as “the greatest fraud in history,” but it is unclear what actions he himself might take to repeal the law.
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Trump would have the support of Republican majorities in both houses of Congress at the start of his second term, but most of the money earmarked for construction grants under the bill would completely overturn the IRA. It is unlikely that it will. -Clean energy projects and manufacturing plants have already won awards.
In fact, much of the money is going to Republican-led states.
Former Undersecretary of Science and Energy Paul Dubber argues that turmoil overseas is the reason he unleashes America’s energy potential in “Kabuto: Coast to Coast.”
Other hurdles also exist. Because the IRA is a law, President Trump could not repeal the bill on his own.
However, we may take certain steps to limit eligibility for certain tax credits and incentives.
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When Trump returns to the Oval Office, he could tighten regulations on automakers eligible for the EV tax credit, increasing manufacturing costs and, in turn, making EVs more expensive for consumers.
FOX News’ Brianne Despiche contributed to this report.
