U.S. House Republicans Target EV Tax Credits and Efficiency Rules
House Republicans proposed eliminating electric vehicle tax credits and repealing fuel efficiency rules as part of a new tax reform bill. The bill could impact U.S. leadership in energy innovation and competitive market positioning, particularly against China. The proposal also affects battery production and external manufacturing partnerships.
House Republicans unveiled a controversial new tax reform proposal on Monday, aiming to abolish the electric vehicle (EV) tax credit and repeal fuel efficiency standards. The measure, facing its first hearing at the House Ways and Means Committee on Tuesday, proposes ending a $7,500 new-vehicle tax credit and a $4,000 used-vehicle credit by December 31. A one-year extension is proposed for automakers yet to sell 200,000 EVs.
Notably, industry stakeholders are raising alarms. Genevieve Cullen, president of the Electric Drive Transportation Association, condemned the plan, suggesting it undermines America's leadership in energy innovation and enhances China's competitive edge. The U.S. Treasury had previously allocated over $2 billion in EV rebates.
Amid the sweeping changes, Republicans want to eliminate a loan program aiding in the production of advanced technology vehicles, which includes rescinding funding for ongoing projects. Still, a vital battery production credit would remain, albeit with restrictions in place to curb Chinese influence in American EV markets by 2027.
(With inputs from agencies.)
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