Trump’s Christmas Gift to Big Oil: Killing Hopes of Electric Car Tax Credit Extension

“But groups tied to the Koch network and backed by oil industry funding worked hard to kill the clean energy incentives. These groups sent a letter to Senate Majority Leader Mitch McConnell last week urging the Senate to oppose any bill that includes an EV tax credit extension……..Trump specifically pushed for excluding the EV tax credit, as Bloomberg reported.”

Trump’s Christmas Gift to Big Oil: Killing Hopes of Electric Car Tax Credit Extension

Politics

By Dana Drugmand

The oil industry, a staunch opponent of electric vehicles (EVs), received an early Christmas present from the White House as President Trump reportedly intervened to quash an EV tax credit expansion from inclusion in a government spending package.

The tax credit is meant to help offset the upfront cost of electric vehicles and boost the EV market. Consumers who purchase an EV can currently claim a credit up to $7,500, and the credit phases out once auto manufacturers sell 200,000 qualifying vehicles. Tesla and General Motors have both hit the 200,000-vehicle cap and had lobbied for an extension. A bipartisan proposal called for allowing a $7,000 credit for an additional 400,000 vehicles sold.

That proposal, introduced earlier this year as the Driving America Forward Act, was rolled into a broader package of incentives for renewable energy that proponents hoped to pass as part of an end-of-year spending deal. But groups tied to the Koch network and backed by oil industry funding worked hard to kill the clean energy incentives. These groups sent a letter to Senate Majority Leader Mitch McConnell last week urging the Senate to oppose any bill that includes an EV tax credit extension.

Ultimately the EV provision was dropped from the spending package. According to Forbes, “In last-minute negotiations over a massive package of spending bills designed to avert a government shutdown, the EV provision was lost in the shuffle and that was the outcome Republicans and President Trump wanted.”

Trump specifically pushed for excluding the EV tax credit, as Bloomberg reported.

“There has been extreme resistance from the president. I don’t know why the White House would want to stop jobs and the future of the auto industry,” said Michigan Senator Debbie Stabenow, one of the original sponsors of the Driving America Forward Act.