You are here: Home » Reuters » News
Business Standard

White House seeks to end subsidies for electric cars, renewables

Reuters  |  WASHINGTON 

(Reuters) - said on Monday the wants to end subsidies for electric cars and other items, including

Asked about plans after announced U.S. plant closings and layoffs last week, Kudlow pointed to the $2,500-to-$7,500 tax credit for consumers who buy plug-in electric vehicles, including those made by GM, under

"As a matter of our policy, we want to end all of those subsidies," Kudlow said. "And by the way, other subsidies that were imposed during the Obama administration, we are ending, whether it's for renewables and so forth."

Asked about a timeline, he said: "It's just all going to end in the near future. I don't know whether it will end in 2020 or 2021."

The tax credits are capped by at 200,000 vehicles per manufacturer, after which the subsidy phases out. GM has said it expects to hit the threshold by the end of 2018, which means under the current law, its tax credit scheme would end in 2020. said in July it had hit the threshold. Other automakers may not hit the cap for several years.

Experts say the cannot change the cap unilaterally. U.S. last week threatened to eliminate subsidies for GM in retaliation for the company's decision.

Kudlow made clear any changes in subsidies would not just affect GM. "I think legally you just can't," he said.

Democrats will take control of the in January and are unlikely to agree to end subsidies for electric cars and many have been pushing for additional incentives.

Tesla and GM have lobbied for months to lift the cap on electric vehicles or make other changes, but face an uphill battle make changes before the current expires.

In October, Senator proposed lifting the current cap on electric vehicles eligible for tax credits but phase out the credit for the entire industry in 2022. Two other senators in September proposed lifting the per manufacturer credit and extending the benefit for 10 years.

Also in October, Senator a Republican who chairs the Senate Environment and Public Works Committee, proposed legislation to end the EV tax credit entirely.

(Reporting by and David Shepardson; writing by Doina Chiacu; editing by and Lisa Shumaker)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Tue, December 04 2018. 06:04 IST
RECOMMENDED FOR YOU