U.S.: EV tax credit set to end earlier than expected

U.S. Republican senators have introduced a proposal to eliminate the USD 7,500 federal tax credit for new electric vehicles (EVs) and the USD 4,000 credit for used EVs earlier than expected. These credits, created under the Inflation Reduction Act, were designed to make EVs more affordable and reduce greenhouse gas (GHG) emissions. Originally, the law provided the tax breaks through 2032.

The new administration argues that the EV tax credits are an unnecessary government subsidy that distorts the free market and primarily benefits higher-income individuals who are more likely to afford EVs. They also claim the credits are no longer essential, as the EV industry has matured and should now compete without federal supp