Trump Administration Wants To Eliminate $7,500 EV Tax Credit

Last week, President Trump directed his anger at General Motors for its decision to idle five plants in North America. At the time, he also threatened to “cut all GM subsidies including those for electric vehicles.”

The administration appears to be moving forward with its plan as Bloomberg reports Trump’s chief economic adviser, Larry Kudlow, told reporters that electric vehicle tax credits will “end in the near future.” Kudlow went on to say this could happen in 2020 or 2021 as Trump wants to “end those subsidies and others of the Obama administration.”

While it’s clear that the President wants to eliminate the tax credit, he would likely need congressional support to end the incentives as they were passed by Congress. This could prove to be an uphill battle as the Democrats will be in control of the House next year and some Republicans are in favor extending the credit.

Despite being billed as a punishment for General Motors, it wouldn’t have much effect on the automaker. As we reported last week, the company is quickly approaching the sale of its 200,000th eligible vehicle and this will trigger a reduction in incentives before they’re finally phased out.

Tesla hit the magic number back in July and that means customers who take delivery of new models in January will only receive a credit of $3,750. Six months later, in July of 2019, the rebate will only be worth $1,875.

Instead of punishing GM, the elimination of tax credits would hurt a number of companies who are planning to launch electric vehicles in the near future. This includes models such as the Audi E-Tron and Mercedes EQC.

  • charlie bear

    What a hypocrite a-hole.


  • Nedlands

    They should be eliminated. Why should be be subsidized to buy a car.

    • Dude

      Because electric cars are something that deserve to be subsidized. Certainly more than coal, oil, and agriculture (when the bailouts are brought on by pointless trade wars)

      • Mr. EP9

        How so?

        • Dude

          Low emission vehicles are better for the environment (ie healthier for humans) but they are also a potential boon for the economy. New EV companies are springing up and as a side effect there’s more desire for solar/wind farms (more jobs)

          Maybe deserve is the wrong word (*edit) but if coal is worth subsidizing than I don’t see why EVs aren’t.

      • danno

        When will electric cars stop using fossil fuel powered electricity, and start paying their fair share of road taxes?
        Taxpayers get it from both ends, subsidizing electric cars and shouldering their road maintenance costs.

        • Perry F. Bruns

          Yeah, it’s not as though we have a supermassive fusion generator big enough to cause the entire planet to revolve around it that we’re learning to harness for energy…. Oh, wait.

        • Dude

          Fair share? EVs make up a miniscule portion of cars on the road and I think not making the air any more toxic is a good contribution. EV subsidies are similarly tiny so if you’re worried about your taxes there’s 100 better things you could point your finger at.

        • flyfish

          They do in Colorado, there is an EV tax on yearly tags/registration and and charge for weight class.

      • TheAmerican

        Ever hear of the dead zone caused by the creation of Prius batteries? NOTHING that is man made has no effects on the environment, and EVs are no exception. As a whole, they aren’t much better than gas/diesel vehicles.

        • Mike anonymous

          I agree with “Dude” regarding EV’s deserving to be subsidized, but that is a good point you’ve made as well.

          A lot of people don’t really think much past the vehicle and that it is Zero Emissions, but an important part of that system is how is the energy (electricity) in this case being produced?
          For some it’s produced naturally through solar, wind, and other forms of natural energy. But in other cases in a number of countries, it’s being generated by oil, coal, and other things that are harmfully to the environment. (Not including what happens to batteries when they expire).

          EV’s are better than Gas/diesel vehicles. How much better are they really? I think they are far better environmentally (especially within congested cities, areas lacking in trees/greenery) than gasoline vehicles, BUT i don’t think anyone should think that because it says “Zero Emissions”, that there is ‘Zero Harm’ done.

        • Dude

          Wow I haven’t seen the “Prius dead zone” story referenced in almost a decade. That moniker comes from some guy (Chris Demorro) writing about an invalidated study by the now defunct CNW Marketing company, in which they stated that the Hummer H3 was more efficient than the Prius [1]. After getting called out on how laughably nonsensical that was, they corrected themselves, but not before the story was paraded by very credible (/s) sites like the Daily Mail. As for the supposed “dead zone” itself, the nickel mine in Sudbury, from where Toyota purchased material for its batteries, had been decimated by mining for decades before the Prius existed and was already in recovery years before the article was written[2].

          But it’s too late to for the truth to matter. The story by Chris Demorro and the study by CNW no longer exist and have been proven to be false, yet the misinformation still spreads. This is why it’s important that you do your own research. Your one comment takes paragraphs to correct. “As a whole, they aren’t much better than gas/diesel vehicles.” for instance, is completely fase [3]. In 24/50 state, EVs produce the least pollution compared to ICE cars and hybrids/plug-ins (that includes battery producing and charging; in the other states it’s a mix of hybrid and plug-in) and that only becomes more true the longer they’re driven.

          [Sources] in second comment. Hopefully it gets approved

  • Mr. EP9

    Well Tesla won’t have to worry even if it goes through as their subsidies will be non-existent by then; GM won’t be too far behind.

  • JBsC6

    THE ev credit should just be for carssold at under $50 grand …..any cars sold over 50 grand to $75k get half credit.

    • David Giles

      Why? To make higher cost EVs even more unaffordable… If a manufacturer releases an EV with an MSRP of $50,001, your math would effectively kill it’s potential sales. NOPE – the credit should be even across the board.

  • performante

    This administration is utter garbage.


  • Cobrajet

    Give a tax credit for non-SUVs.

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