The Trump administration’s 2020 budget proposal proposes eliminating the electric vehicle tax credit, which could be detrimental to the industry.
The proposal, which was released on March 11, would slash a tax credit worth up to $7,500 on the purchase of electric vehicles. The move would save the government $2.5 billion over a decade, according to the administration.
Major automakers, including Tesla, GM, Nissan, among others, have been lobbying Congress to extend the current tax credit, which phases out after companies have sold 200,000 vehicles. Tesla and GM have already hit the limit, according to EV Adoption.
A tax credit is far from a perfect system, but it’s still one of the best ways to allow for mass adoption of electric vehicles. Cost is critical when it comes to cars and electric vehicles are still too expensive for mainstream consumers.
The US needs to combat climate change through measures such as reducing our dependence on fossil fuels and electric vehicles are one way. Through clean vehicle and fuel technologies, the US can slash its projected oil demand in half within the next twenty years, according to the Union of Concerned Scientists.
Rather than trying to undercut the electric vehicle industry, the Trump administration should be supporting the effort to cut carbon emissions. Perhaps a tax on combustion engines might be a solution. The Democrat-controlled House is unlikely to pass the Trump administration’s budget, but it’s still worrisome that the White House isn’t taking climate change seriousl