White House economic adviser Larry Kudlow said on Monday the United States will end subsidies for electric cars and other items including renewable energy sources.
Asked about actions planned after General Motors 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 federal law.
“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.”
EV subsidies have been a subject of debate recently among lawmakers. U.S. President Donald Trump threatened to end GM subsidies after the company announced plans to shut down production at some U.S. factories. In October, Republican Senator and chairman of the Senate Environment and Public Works Committee John Barrasso introduced a bill to kill off the federal incentives altogether.