A group representing major electric vehicle and battery manufacturers on Friday urged President-elect Donald Trump not to eliminate tax breaks for electric vehicle sales and production, citing the impact on key states that voted for the Republican.
The Zero Emission Transportation Association – whose members include Rivian RIVN.O LG 373220.KS, Tesla TSLA.O, Uber UBER.N, Lucid LCID.O and Panasonic 6752.T – said the production tax breaks led to huge gains in Jobs in states like They warned that eliminating production and consumer tax breaks would undermine those investments and hurt American job growth.
Albert Gore, ZETA’s executive director, said the tax breaks were necessary to “actually compete to win against China.”
Reuters reported on Thursday that Trump’s transition team wants to eliminate the $7,500 consumer tax credit for electric vehicle purchases, citing sources. Shares of electric vehicle and battery makers fell after the Reuters report.
Automakers have made clear to Trump’s transition team and lawmakers that they face tough regulations and need tax incentives to meet them.
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The Automotive Innovation Alliance urged Congress in an Oct. 15 letter to retain tax credits for electric vehicles, calling them “critical to cementing the United States as a global leader” in future auto manufacturing.
Representatives of the largest electric car maker, Tesla, have told Trump’s transition committee that they support ending subsidies, Reuters reported.
Trump has said he plans to begin the process of rolling back the Biden administration’s strict emissions regulations that were finalized earlier this year. The rules reduce exhaust emissions limits by 50% from 2026 levels by 2032.
Trump told Reuters in August that he would consider ending the $7,500 tax credit for electric vehicle purchases. “Tax breaks and tax incentives are generally not a good thing,” he said.
Trump could take steps to reverse Treasury Department rules that made it easier for automakers to take advantage of the $7,500 credit, or he could ask Congress to repeal it entirely. During his first four-year term, Trump sought to repeal the electric vehicle tax credit, which was later expanded by President Joe Biden in 2022.
—David Shepardson reports. Edited by Jonathan Oatis
