The electric vehicle tax credit in the United States is unlikely to get an extension due to resistance from President Donald Trump, Bloomberg reports.
For car manufacturers such as Tesla and General Motors, the credit is a legislative priority and has been credited as helping to accelerate the introduction and sales of EVs across the country.
A proposal championed by Michigan Democrat Senator Debbie Stabenow and Republican Senators Lamar Alexander of Tennessee and Susan Collins of Maine would grant automakers a $7,000 tax credit for 400,000 EVs they produce after exceeding the current cap of 200,000 vehicles to receive the full $7,500 credit.
Also Read: US Government Paid Millions In Potentially Bogus EV Tax Credits
“There has been extreme resistance from the president,” Stabenow said. “I don’t know why the White House would want to stop jobs and the future of the auto industry.”
Officials from the White House have warned lawmakers that if they try to expand the electric vehicle credit as part of a compromise spending bill, it could tank the measure. The credit is viewed by many in the West Wing and among many conservatives as mainly benefiting rich California residents and Tesla.
“President Trump is fighting to protect middle-class taxpayers by opposing this welfare program for the wealthy,” president of the American Energy Alliance Tom Pyle said. “The Senate Republican leadership would be wise to follow his lead.”
Leaders in the House and Senate are currently negotiating a comprehensive package of tax breaks in a government spending bill that’s likely to move this week.