How automakers are reacting to the end of the $7,500 EV tax credit
Just after midnight this morning, in addition to getting a federal government shutdown, we also lost all federal tax credits for new electric vehicles, used electric vehicles, and commercial electric vehicles.
Sadly, this was not a surprise. During last year's election, the Trump campaign made no secret of its disgust toward clean vehicles (and clean energy in general), and it promised to end subsidies meant to encourage Americans to switch from internal combustion engines to EVs. Once in power, the Republicans moved quickly to make this happen.
Federal clean vehicle incentives had only recently been revamped in then-US President Joe Biden's massive investment in clean technologies as part of the Inflation Reduction Act of 2022. To qualify for the $7,500 tax credit, a new EV had to have its final assembly in North America, and certain percentages of its battery content needed to be domestically sourced.