President-elect Donald Trump is expected to roll back several of the green initiatives implemented under President Biden, including policies designed to incentivize the production and purchase of electric vehicles (EVs). According to reports, the Trump transition team is already exploring the elimination of the $7,500 tax credit for purchasing or leasing certain EV and plug-in hybrid models, a provision included in Biden’s landmark Inflation Reduction Act of 2022.
Dropping the federal subsidy is expected to significantly affect consumers considering an EV purchase, according to Fox Business. “The EV tax credit was intended to make electric vehicles more affordable for the average consumer and they have,” said Scott Kunes, COO for Kunes Auto & RV Group. “We’ve seen EV sales and leases increase significantly as a direct result of the federal tax incentives. Their repeal would once again put those vehicles out of reach for the average consumer.”
