Extended EV Tax Credit Squashed, Trump Blamed

GM and Tesla were both looking for an expansion of the federal EV tax credit. Now it doesn’t look like it’s going to happen, and a new report points the blame at the President.

The current federal EV tax credit is $7,500, but it only applies to the first 200,000 EVs an automaker sells. Once that milestone is hit, the credit falls until it drops to zero. Currently, that affects only two automakers: General Motors and Tesla. So those were the two lobbying for an extension of the credit since EVs still aren’t exactly mainstream.

Michigan Democrat Senator Debbie Stabenow authored a proposal to extend the credit to 600,000 vehicles, though with a lowered max of $7,000. She said this week that the proposal doesn’t seem likely to happen at this point, putting the blame on President Trump.

“There has been extreme resistance from the president,” said Stabenow, according to Bloomberg, adding that “I don’t know why the White House would want to stop jobs and the future of the auto industry.”

Bloomberg’s report says that White House officials told lawmakers that adding the EV credit to a new spending bill compromise could tank the bill. This may come as a surprise to GM, who most recently backed the President in his efforts to stop California’s efforts to maintain the state’s emissions standards as more strict than the federal requirements.

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