According to new reports, the transition team of President-elect Donald Trump is now advocating for the elimination of a $7,500 tax credit for electric vehicles.
On Trump’s transition team, energy policy is being led by North Dakota Governor Doug Burgum and wealthy oilman Harold Hamm.
The duo are advocating for the abolition of the EV tax credit from the Biden administration in order to counteract other tax breaks and reductions that Trump intends to establish as permanent.
The EV tax credit is advantageous to the sector of Tesla Motors, the largest electric vehicle manufacturer in the United States and the second largest globally, which is led by tech magnate Elon Musk, one of Trump’s most ardent supporters.
Musk has previously advocated for the abolition of the tax credit, as he believes that it would have an even greater impact on Tesla’s competitors than it would on Tesla.
President Joe Biden’s signature Inflation Reduction Act legislation includes the electric vehicle subsidy as a critical component.
Trump’s energy team is considering repealing the tax credit to bolster its argument for extending Trump’s 2017 tax cuts, which are scheduled to expire next year.
During the campaign, Trump made numerous promises to reverse Biden’s policies on electric vehicles.
It is also probable that Trump’s electric vehicle agenda will include the repeal of exhaust emissions restrictions that Biden’s administration has imposed on vehicle manufacturers.
Republicans in the House have already begun to target the Biden rule.
[READ MORE: Donald Trump to Nominate Doug Burgum as Secretary of the Interior]
