Source: Gasgoo
The Zero Emission Transportation Association (ZETA), a group representing large electric vehicle and battery manufacturers including Tesla, Rivian, Uber, Lucid and Panasonic, is urging the next president of the United States, Donald Trump, not to eliminate tax credits for the sale and production of electric vehicles.
Model Y; Image Source: Tesla
The Zero Emission Transportation Association says tax credits for electric vehicle production have driven significant job growth in states such as Ohio, Kentucky, Michigan and Georgia. At the same time, the Zero Emission Transportation Association warned that eliminating tax credits for the production and acquisition of electric vehicles would undermine investment in electric vehicles and hinder job growth in the United States.
Albert Gore, managing director of the Zero Emission Transportation Association, also said that the electric vehicle tax credit is essential to “win the competition against electric vehicles in China.”
Speaking at the 29th Conference of the Parties to the United Nations Framework Convention on Climate Change (COP29) in Baku, Azerbaijan, US Energy Secretary Jennifer Granholm said that eliminating the US electric vehicle tax credit would be counterproductive. And it will give Chinese automakers an edge in the market.
In an Oct. 15 letter to Congress, the Alliance for Automotive Innovation also urged the U.S. to preserve the electric vehicle tax credit, calling it “critical to solidifying America’s global leadership in the automotive manufacturing industry of the future.”
However, it is understood that representatives of US electric car manufacturer Tesla have told the Trump team that they support the removal of US subsidies for electric vehicles.
Previously, sources said the Trump team wanted to eliminate a $7,500 tax credit for consumers who buy electric vehicles. And that sent shares of electric car and battery makers down. In August, Trump said he would consider eliminating a $7,500 tax credit for electric vehicle purchases.
Trump could take steps to reverse a U.S. Treasury Department rule that makes it easier for automakers to get a $7,500 tax credit, or ask Congress to repeal it altogether. Trump tried to repeal the electric vehicle tax credit during his last term, but in 2022, current US President Joe Biden instead pushed for the development of the electric vehicle tax credit.
Automakers have been making the case to the Trump team that they are being regulated by strict U.S. carbon rules and need tax incentives to deal with them.
In response, Trump said he plans to repeal the tough carbon emissions rules finalized by the Biden administration earlier this year. The rule calls for vehicle emissions to be half of what they are in 2026 by 2032.
