President-elect Donald Trump is gearing up to dismantle President Joe Biden’s electric vehicle (EV) policies upon taking office, signaling a dramatic shift in U.S. energy and transportation priorities. Among his first targets is the $7,500 federal tax credit for EV and plug-in hybrid purchases, a cornerstone of Biden’s Inflation Reduction Act of 2022.
This tax credit, intended to make EVs more affordable, has been pivotal in boosting sales and leases. Critics argue its repeal could stymie the growth of EV adoption, raising concerns across the industry.
“The EV tax credit was designed to make these vehicles accessible to the average consumer, and it’s been successful,” said Scott Kunes, COO of Kunes Auto & RV Group, to Fox News. “Its removal would put these vehicles out of reach for many families.”
Emporia Energy CEO Shawn McLaughlin echoed the sentiment, explaining how the credit incentivized environmentally conscious purchases. However, he noted that the eventual drop in EV prices due to advancements in battery technology might offset the loss of government support.
“With better battery technology and manufacturing, EV costs will align with traditional vehicles by 2026-2027,” McLaughlin told Fox Business. “Cost-sensitive buyers will start switching, even without subsidies.”
Some experts, like Kreg Peeler, CEO of EVject, believe the debate over tax credits is short-sighted, predicting a future dominated by autonomous vehicles (AVs). “Within the next decade, fleets of self-driving cars will replace individual car ownership for many,” Peeler said. “EVs and AVs will dominate regardless of current policies.”
Biden’s Mandates Under Fire
During his presidency, Biden introduced stringent emissions standards that many viewed as a de facto mandate for EV adoption. Starting with the 2027 model year, these regulations require automakers to meet progressively tougher tailpipe emissions limits, aiming for 70% of new car sales to be zero-emission or hybrid by 2032.
Critics, including Trump allies, have blasted the move as overreach.
“Joe Biden’s extreme EV mandate forces Americans into ultra-expensive cars they don’t want or can’t afford, destroying jobs and our auto industry,” said Trump campaign spokesperson Karoline Leavitt. “President Trump will reverse this on Day One.”
Industry leaders have also voiced alarm. Chet Thompson, President of the American Fuel & Petrochemical Manufacturers, and Mike Sommers, President of the American Petroleum Institute, called on Congress to intervene.
“At a time when millions are grappling with inflation, this regulation effectively bans new gas-powered vehicles, making them unaffordable for most Americans,” they said in a joint statement. “This policy feels like a ban and will have far-reaching consequences.”
The Road Ahead
As Trump prepares to take office, the battle lines over EVs, emissions, and energy policies are being drawn. While Biden’s policies have aimed to accelerate the transition to green energy, Trump’s plans promise a stark reversal, potentially reshaping the auto industry and environmental policy for years to come.
With both sides entrenched, the coming months are set to ignite fierce debates over the future of American transportation, energy independence, and consumer choice.
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Let \’em LOSE it as America is better off without such a stupid policy! Donald J. Trump is the very Best US President we have seen in our lifetime!
Dems, especially the Biden green team, fit perfectly the Democrat “motto”: they are for diversity as long as everyone is just like them. In other words, you can buy any kind of car you want, as long as it’s electric.
Any new technology that is valid and useful is adopted by the public and profitable without government forcing its use. No one had to bribe or force us to buy CDs or DVDs or their modern replacement streaming. And BTW, go back 110 years, and we selected gasoline engine cars over electric or steam. That’s happening again, as a large percentage of EV owners are one-time only EV buyers, as they go back to ICE.