Summary
- The US EV tax credit is at risk of being eliminated, including subsidies for new EV purchases, EV leasing, and used electric cars
- Automakers like Ford and GM are lobbying to keep the EV subsidies in place, proposing a 3-year phaseout or just keeping the leasing tax credit
- Many electric cars and EV batteries are produced in Republican states, potentially influencing the decision of lawmakers
- The potential repeal of EV subsidies could impact job security and stability in the auto industry
- Supporting independent cleantech coverage can help accelerate the cleantech revolution
Article
The article discusses the potential elimination of the US EV tax credit, which includes three credits for new EV purchases, EV leasing, and used electric cars. While Elon Musk does not seem interested in preventing this change, Ford and GM, alongside other automakers, are lobbying against Republicans to keep the EV subsidies in place. One proposal is a 3-year phaseout of the subsidies, while another compromise being discussed is to maintain the leasing tax credit, which has been crucial in promoting EV sales through competitive leasing options.
The auto industry is emphasizing the number of jobs that rely on electric vehicles and the fact that many EV and battery plants are located in Republican states. This could influence Republican lawmakers to keep the EV incentives in place to support local job markets in areas like Ohio, South Carolina, Georgia, and Alabama, which are part of the U.S. “Battery Belt”. The industry is concerned about the potential repeal of various IRA elements, as this could put jobs at risk and create uncertainty in the market, affecting companies financially.
The unpredictability of yo-yo policymaking, such as potential changes to EV subsidies, is detrimental to the auto business as it affects companies’ bottom lines. Ford CEO Jim Farley highlighted the risks associated with repealing certain elements of the IRA and emphasized the negative impact it could have on jobs and investments. The article stresses that hacking away at EV subsidies today does not make economic sense and could lead to job losses and instability in the market.
The article encourages readers to support independent cleantech coverage by contributing a few dollars a month. It also provides contact information for submitting tips, advertising, and suggesting guests for the CleanTech Talk podcast. Readers are invited to sign up for the daily newsletter to receive 15 new cleantech stories per day or opt for the weekly newsletter if daily updates are too frequent. The use of affiliate links by CleanTechnica is disclosed, and readers are directed to the website’s comment policy for guidelines on engaging with content.
In conclusion, the potential elimination of US EV tax credits is a significant concern for automakers, job markets, and the overall economy. The industry is lobbying to prevent the subsidies from being cut, highlighting the importance of EVs in creating jobs in Republican states. The article emphasizes the negative impact of policy uncertainty on businesses and the need for stable regulations to support the growth of the EV market. Readers are encouraged to stay informed about cleantech developments and support independent coverage to accelerate the cleantech revolution.
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