The House Ways & Means Committee unveiled its markup on a continuing joint resolution that, if approved, would essentially eliminate electric vehicle (EV) tax credits for most of the auto industry by the end of this year.
The targeted credits for termination include:
- Section 30D (New Clean Vehicles), which provides up to $7,500 for the purchase of an eligible new clean vehicle,
- Section 30C (Alternative Fuel Infrastructure), which provides up to $1,000 for eligible refueling infrastructure,
- Section 45X (Advanced Manufacturing Production), which subsidizes a percentage of the cost of producing certain clean energy technologies,
- Section 45W (Commercial Clean Vehicle), which provides up to $7,500 for the purchase of eligible vehicles under 14,000 lbs. and up to $40,000 for those over 14,000 lbs., and
- Section 25E (Used Clean Vehicles), which provides up to $4,000 for the purchase of an eligible used clean vehicle.
Ben Prochazka, Executive Director of Electrification Coalition, issued the following statement in response: The markup marks a concerning regression for both the automotive and broader EV industries in the U.S. The electric transportation sector is a vital and fast-growing segment of the U.S. economy, playing a central role in the global competition to shape the future of transportation. The U.S. must maintain an assertive stance in terms of policy and market incentives to ensure its competitiveness, particularly against strong international competitors, notably China. Furthermore, electrification diversifies energy sources for vehicles, reducing reliance on unstable oil markets and enhancing economic and national security.
These tax credits have already led to hundreds of billions in private-sector investments in domestic manufacturing, created hundreds of thousands of high-paying jobs, and strengthened the U.S. auto industry’s position globally. They have attracted long-term investments from companies in various sectors, including automakers, battery manufacturers, and critical mineral suppliers. Eliminating these credits could result in stranded assets, harm the economy, decrease U.S. jobs, and discourage future investment in the country.
As the Trump administration acknowledged, both the U.S. economy and military rely on a steady supply of critical minerals, which can only be ensured by maintaining a strong domestic EV industry. Weakening the U.S. EV sector now, especially as China (which controls the majority of global critical mineral mining and processing) begins restricting exports of these materials to the U.S., could jeopardize U.S. military, manufacturing, and innovation capabilities.
Though the EV market will eventually thrive without incentives, this policy reversal would introduce uncertainty, potentially impacting jobs and communities nationwide. The EC urges Congress to recognize the importance of these policies for economic and national security and to adopt a strategy that preserves EV incentives and supports the future of the auto industry.
