The transition team by Donald J. Trump has now confirmed that one of the plans of the President-elect of the United States is to remove one of the biggest tax and electrification programs of the current administration of President Joe Biden. This is the famed US electric vehicle tax credits that previously offered massive discounts that enticed more Americans to buy clean energy cars with as much as $7,500 price reductions.
Insiders revealed that this is one of the many programs and laws that Trump will cancel under his second-term rule, focusing on the established regulations that POTUS Biden worked on in his career.
Trump Will Abolish US EV Tax Credits Enjoyed Under Biden's Rule
Multiple reports from Reuters, CNN, and more recently received word from insiders on Donald Trump's transition team that the future leader of America will remove the EV tax credits available for consumers to take advantage of. It is bad news for consumers who rely on these tax incentives to get their hands on the latest electric vehicles in the market that qualify for the discount.
However, it is good news for EV companies who have been suffering in their sales and performance if their clean energy cars qualify, as this means less revenue for every unit they sell in the market.
It was revealed by the reports that this move centers on Trump's plan to reform taxation in the United States, with the Inflation Reduction Act known for previously going against this Biden program to draw in more money for the United States.
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Say Goodbye to US EV Tax Credits Worth $7,500
Biden's US EV tax credits were celebrated by consumers as they gave them as much as $7,500 worth of price reductions for their next purchases, offering massive discounts that helped make it more available to drivers. Initially, it started as an incentive for promoting the transition of electric vehicles in the market, but later, it focused on expanding more of American development and production of EVs.
The US EV Tax Credits Under POTUS Biden
Since President Joe Biden stepped into office, one of his many ramping focuses has been to expand more of electric vehicle adoption in the United States, and one of the top ways to do so is to give Americans EV tax credits. This program came and went over the years, as initially, almost all electric vehicles could offer discounts when selling in the country, but they later removed it as Chinese components and parts were being restricted.
In the later years, the United States clarified more of the provisions of the program, particularly as it wanted to prioritize more jobs in the country to create batteries and other components for EVs. Once automakers were onboard this 'Made in America' progression, the US Treasury unveiled that more electric vehicles would qualify for the program and offer tax reductions for all.
However, Trump's side, the Republicans, have previously challenged US EV tax credits in the country by proposing new legislation under the Inflation Reduction Act that will draw more tax revenue for the US. As previously speculated after Trump won the elections, many of Biden's legislations, including US EV tax credits, will be abolished, and it did not take long for this to be confirmed by his transition team, coming soon for Americans.
