Trump Proposes Ending Tax Credit For Electric Vehicles

The White House proposed on Monday eliminating a tax credit worth up to $7,500 on the purchase of new electric vehicles, a move it says would save the U.S. government $2.5 billion over a decade.

Major automakers have been lobbying Congress to extend the credit that phases out after companies hit 200,000 vehicles sold. They are hopeful Congress could expand the benefit by including it in a package of extended tax provisions that would otherwise expire that could win approval this year.

Tesla Inc and General Motors Co both hit the 200,000 figure last year, but other major automakers are far from that figure. The credit consumers receive for buying Teslas fell to $3,750 on Jan. 1 and will drop to $1,875 for six months starting July 1.

The credit for GM vehicles will fall to $3,750 on April 1, and then drop to $1,875 in October for six months.

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It will completely disappear for Tesla buyers in January 2020 and in April 2020 for GM.

In November, a congressional report said 57,066 taxpayers claimed $375 million in electric vehicle tax credits in 2016. Congress previously estimated the cost of the credit at $7.5 billion between the 2018 and 2022 fiscal years.

The credit enjoys strong support among Democrats in Congress, but Senator John Barrasso, a Republican who chairs the Senate Environment and Public Works Committee, has proposed legislation to end it entirely.

In December, White House economic adviser Larry Kudlow said the administration of President Donald Trump wanted to end subsidies for electric cars and other related items, including renewable energy sources.

“As a matter of our policy, we want to end all of those subsidies,” Kudlow said. “And by the way, other subsidies that were imposed during the Obama administration, we are ending, whether it’s for renewables and so forth.”

This of course makes leftists completely flip out:

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