Joe Lonsdale, an 8VC managing partner, joins ‘Mornings with Maria’ to discuss Donald Trump’s cabinet picks and their impact on his political agenda.
President-elect Trump’s transition team is looking to get rid of the $7,500 federal tax credit for electric vehicles enacted during the Biden administration, Reuters reported Friday.
Citing two sources familiar with the situation, the outlet said Trump’s team is planning to scrap the EV tax credit as part of a larger tax reform package.
President-elect Trump’s transition team is aiming to end the federal tax credit for purchasing EVs, Reuters reported Friday. ( Chip Somodevilla/Getty Images / Getty Images)
FOX Business has reached out to the Trump transition team for comment.
The tax credit for the purchase or lease of certain EV and plug-in hybrid models was passed as part of Biden’s signature Inflation Reduction Act of 2022. There are 15 EV and six plug-in hybrid models eligible for the government subsidy, according to Car and Driver.
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Trump has for months vowed to “undo” the IRA, the Democrats’ marquee climate and clean energy spending legislation that allocates $369 billion in subsidies aimed at reshoring investments for EV manufacturing and battery production and new utility-scale wind and solar projects.
President Biden signs into law the Inflation Reduction Act of 2022 Aug. 16, 2022. (Demetrius Freeman/The Washington Post via Getty Images / Getty Images)
Trump has described the law as the “greatest scam in history,” but, on his own, it’s unclear what actions he could take to undo the legislation.
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Though Trump will have majority Republican support in both the House and Senate at the start of his second term, it’s unlikely he would move to completely overturn the IRA, in part because a large chunk of the funds designated under the law to help subsidize the build-out of clean energy projects and manufacturing plants has already been awarded.
Much of the funding, in fact, has gone to Republican-led states.
Former Under Secretary of Energy for Science Paul Dabbar argues turmoil overseas is more reason to unleash America’s energy potential on ‘Cavuto: Coast to Coast.’
Other hurdles also exist. Since the IRA is a law, Trump could not move on his own to undo the legislation.
But he could take certain steps to restrict eligibility for certain tax credits or incentives.
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When he returns to the Oval Office, Trump could tighten restrictions for automakers eligible for the EV tax credit, ramping up manufacturing costs and, in turn, making EVs more expensive for consumers.
FOX News’ Breanne Deppisch contributed to this report.
