Trump Wants To Scrap Federal EV Tax Credit, Open To Musk As Advisor

Former president and Republican presidential candidate Donald Trump reiterated his interest in Elon Musk for a potential role in his administration and told one publication that, should he win, he would at the very least think about eliminating the $7,500 electric vehicle (EV) tax credit.

There had been no talks about Musk playing an advisory role in Trump's administration, according to Musk's denial of a Wall Street Journal report from May that suggested Trump was considering Musk for the position. However, Trump stated he would be open to Musk serving in his administration "if he would do it" in an interview with Reuters on Monday.

Over the past few months, Trump and Musk have been developing a friendship, and last month, Musk formally endorsed Trump in the 2024 election. Since then, some have drawn attention to Trump's and vice presidential candidate JD Vance's anti-EV remarks. Vance has also previously suggested eliminating the tax credit.

Earlier this month, Trump went on to say that he "had to be for EVs" because Musk had endorsed his campaign, despite his earlier claims that he would repeal the nonexistent EV mandate. Last week, Musk and Trump had a similar conversation on X Spaces, following which the CEO of Tesla invited Kamala Harris, the Democratic candidate, to participate.

For over ten years, the federal government has been providing financial support for the manufacturing and retailing of electric cars. Many purchasers of plug-in hybrid and battery-electric cars have lowered their tax bills or used a $7500 Internal Revenue Service credit to offset the sales price of their battery-powered vehicle at the point of sale. Subject to price and income caps, the credits lower a filer's federal income tax for the year. There are no refunds for EV tax credits. This implies that they are only applicable to taxes that are due in the year that the buyers took delivery. However, companies may carry over additional EV tax credits to upcoming years. Numerous restrictions may cause the filer's tax credit to be reduced or forfeited.