U.S. to end subsidies for electric cars, renewables, says White House
White House economic adviser Larry Kudlow said on Monday the United States will end subsidies for electric cars and other items including renewable energy sources.
Asked about actions planned after General Motors announced U.S. plant closings and layoffs last week, Kudlow said he expected subsidies for buying electric cars will end in 2020 or 2021. Kudlow said the Trump administration will end other subsidies, including on "renewables."
EV subsidies have been a subject of debate recently among lawmakers. U.S. President Donald Trump threatened to end GM subsidies after the company announced plans to shut down production at some U.S. factories. In October, Republican Senator and chairman of the Senate Environment and Public Works Committee John Barrasso introduced a bill to kill off the federal incentives altogether.
Another Republican, Senator Dean Heller, in October proposed legislation that would lift the current cap on electric vehicles eligible for tax credits. A number of automakers, including Tesla, GM and Nissan, have called for Congress to lift the cap on EV tax credits.
Surely we'll hear more about federal tax credits for electric vehicles in the near future. The Trump Administration has called upon German automakers to meet in Washington for trade talks. BMW, Daimler and Volkswagen all have significant electric vehicle initiatives in progress with plans to sell — and even build — more plug-in vehicles in the U.S.
This article uses reporting from Reuters.
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