Federal EV tax credits are finished, thanks to Donald Trump and Tom Barrett

Lansing, Mich. – Despite their success driving the growth of America’s electric vehicle manufacturing, including a 60% increase after the 2023 credits, today marks the end of federal tax credits for the purchase of new and used EVs. Thanks to Donald Trump and MAGA allies like Rep. Tom Barrett, who voted to kill the credits, Michiganders can no longer save up to $7,500 on the purchase of a qualified electric vehicle.

The cancellation of the popular credits means Michigan residents will lose out on millions of dollars they could have saved on future EV purchases. In 2024 alone, nearly 8,000 Michigan families saved over $50 million by leveraging the federal EV credits.

Climate Power Executive Director Lori Lodes issued the following statement: “Just as U.S. electric vehicle sales reach record highs, Donald Trump and Republicans slap another tax on families, jacking up the price of a new EV by $7,500 starting tomorrow. Trump and Republicans’ decision to end EV tax credits will undercut the American auto industry for decades to come. And China is not waiting to step in – our biggest global competitor’s EV sales are already set to surpass U.S. overall auto sales.

“Meanwhile, Trump just announced $625 million in subsidies for the dirty, expensive coal industry. Trump and Republicans’ reckless crusade against clean energy is sabotaging U.S. manufacturing and driving up costs for Americans.”

Eliminating federal tax credits for EVs is part of the broader MAGA attack on clean energy. Trump’s attempts to strip funding for EV infrastructure will increase charger anxiety for customers, as the U.S. Department of Transportation’s National Electric Vehicle Infrastructure (NEVI) Formula Program was expected to reduce geographic disparities between charging hotspots.

In March, the Trump administration called for a temporary suspension on all orders of zero-emission vehicles, stopped the installation of new EV charging stations at federal agencies, and ordered some existing stations to shut down. As of 2024, the federal government had begun installing more than 25,000 charging ports and had ordered more than 68,000 zero-emission vehicles.

As of 2023, the clean vehicles sector employed 31,771 Michigan workers, jobs that are now at risk as the Trump administration continues to attack this industry.

Taken together, these actions continue to drive up costs for Americans and undermine our clean energy future and global leadership in EV technology in order to benefit Trump’s billionaire benefactors in the fossil fuel industry.

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