A coalition representing electric vehicle (EV) and battery manufacturers has called on President-elect Donald Trump to retain key tax credits supporting EV sales and production, warning that eliminating them could harm job growth in pivotal states that backed the Republican in the election.
The Zero Emission Transportation Association (ZETA), whose members include Tesla, Rivian, LG, Lucid, Uber, and Panasonic, emphasized that production tax credits have been instrumental in driving employment gains in states such as Ohio, Michigan, Kentucky, and Georgia.
ZETA Executive Director Albert Gore stressed the strategic importance of the credits, stating they are essential for the U.S. to “compete to win against China.” The appeal comes amid reports from sources indicating the Trump transition team is considering repealing the $7,500 consumer tax credit for EV purchases. This potential policy shift has already led to declines in EV and battery maker stocks, following a Reuters report.
While some automakers, including Tesla, have voiced support for ending the subsidy, industry groups like the Alliance for Automotive Innovation have urged Congress to protect the tax incentives.
The Alliance, in an October letter, described the credits as “critical to cementing the U.S. as a global leader” in automotive innovation. Trump has expressed skepticism about tax credits, labeling them as generally ineffective, and has signaled plans to unwind the Biden administration’s stringent emissions regulations, which were expanded in 2022 to include broader EV tax incentives.
