EV companies, battery makers urge Trump not to kill vehicle tax credits (updated)

Panasonic Holdings

15/11/2024 20:32

(Adds details, background in paragraphs 3, 5-10)
    By David Shepardson
       WASHINGTON, Nov 15 (Reuters) - A group representing
major electric vehicle and battery manufacturers on Friday urged
President-elect Donald Trump not to kill tax credits for
electric vehicle sales and production, citing the impact on key
states that voted for the Republican.
    The Zero Emission Transportation Association - whose members
include Rivian  RIVN.O  LG  373220.KS , Tesla  TSLA.O , Uber
 UBER.N , Lucid  LCID.O  and Panasonic  6752.T  - said
production tax credits have driven enormous job gains in states
like Ohio, Kentucky, Michigan and Georgia, and warned killing
those production and consumer tax credits would undercut those
investments and hurt American job growth.
    ZETA Executive Director Albert Gore said the tax credits are
critical to "actually compete to win against China."
    Reuters reported on Thursday the Trump transition team wants
to kill the $7,500 consumer tax credit for electric-vehicle
purchases, citing sources. EV and battery maker stocks fell on
the Reuters report.
    Automakers have been making the case to the Trump transition
team and lawmakers that they face stringent regulations and need
tax incentives to meet them.
    The Alliance for Automotive Innovation urged Congress in an
Oct. 15 letter to retain the EV tax credits, calling them
"critical to cementing the U.S. as a global leader" in future
auto manufacturing.
    Representatives of biggest EV maker Tesla told a
Trump-transition committee they support ending the subsidy,
Reuters reported.
    Trump has said he plans to begin the process of undoing the
Biden administration's stringent emissions regulations finalized
earlier this year. The rules cut tailpipe emissions limits by
50% from 2026 levels by 2032.
    Trump told Reuters in August he would consider ending the
$7,500 tax credit for electric vehicle purchases. "Tax credits
and tax incentives are not generally a very good thing," he
said.
    Trump could take steps to reverse Treasury Department rules
that have made it easier for automakers to take advantage of the
$7,500 credit or could ask Congress to repeal it entirely.
During his first four-year term, Trump sought to repeal the EV
tax credit, which was later expanded by President Joe Biden in
2022.

 (Reporting by David Shepardson; editing by Jonathan Oatis)
 ((David.Shepardson@thomsonreuters.com; 2028988324;))