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Trump's Transition Team Plans to End Biden's EV Tax Credit
President-elect Donald Trump's transition team is planning to eliminate the $7,500 consumer tax credit for electric vehicle (EV) purchases, a key component of President Joe Biden's Inflation Reduction Act. This move is part of broader tax-reform legislation aimed at reshaping U.S. energy policy.
The decision to end the EV tax credit could have significant implications for the U.S. EV market, particularly for automakers relying on the subsidy to compete against established players like Tesla. While Tesla CEO Elon Musk has indicated that the removal of the credit might slightly impact Tesla's sales, he believes it would be devastating for other U.S. EV competitors.
The energy-policy transition team, led by billionaire oilman Harold Hamm and North Dakota Governor Doug Burgum, views the consumer EV credit as an easy target for elimination. The team believes that removing the credit would gain broad consensus in a Republican-controlled Congress and help offset the cost of extending Trump's original tax cuts.
As the transition team continues to meet and discuss these changes, the future of U.S. clean energy policies remains uncertain. The potential repeal of the EV tax credit highlights the ongoing debate over the direction of America's energy and environmental strategies under the incoming administration.
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