Latest news with #ElectrificationCoalition
Yahoo
a day ago
- Automotive
- Yahoo
NC congressional delegation should support state's electric vehicle industry
An EVgo fast charging station charges a vehicle. (Photo: Loren Elliott for CalMatters) North Carolina's economy has undergone many important transitions over the last several decades. But in recent years there's been no more promising arrival on the scene than the electric vehicle industry. As experts at the national Electrification Coalition pointed out last week, federal EV tax credits have helped spur the creation of more than sixteen thousand jobs and over twenty billion dollars in investments in the state in recent years. And, of course, these are jobs and investments that are not only good for the state's economy, but for the world as it struggles to end its heroin-like addiction to fossil fuels. Unfortunately, the massive budget and tax bill approved by the U.S. House last week places all of this in jeopardy by eliminating several tax credits supporting the industry. The bottom line: Our nation currently spends hundreds of billions of dollars each year subsidizing the fossil fuel industry. The least North Carolina's congressional delegation can do is help to retain some modest subsidies for an industry of the future that helps our people and our planet. For NC Newsline, I'm Rob Schofield.
Yahoo
2 days ago
- Automotive
- Yahoo
Tennessee's electric vehicle industry could stall under ‘Big Beautiful Bill' tax credit cuts
NASHVILLE, Tenn. (WKRN) — Tennessee's booming electric vehicle industry could be in limbo if the U.S. Senate passes President Donald Trump's 'Big Beautiful Bill' as is. The proposal includes cuts to federal tax credits for EV owners and manufacturers. Tennessee is a leader in the EV industry in the Southeast, with three EV manufacturing plants and multiple battery plants under construction. The industry has created more than 16,300 jobs and drawn $17.6 billion in investments in the Volunteer State, according to the Electrification Coalition. Federal tax credits for EV owners and manufacturers, which were a part of the Inflation Reduction Act passed in 2022, including an up to $7,500 tax credit for many who purchase an EV, have incentivized owning and building EVs, aiding the industry's rapid growth, Ben Prochazka, the executive director of the Electrification Coalition told News 2. 'These credits were designed to help make sure that the U.S. is really a leader and can catch up to other countries that have really invested a lot more in the policy or just direct investments that can support the cultivation of that industry,' Prochazka said. However, those federal tax credits could be cut if the Senate passes the budget bill as is. President Trump's 'Big Beautiful Bill' includes cuts to all tax credits regarding EVs. Prochazka argued the cuts would put EV jobs and investments at risk. 'What the inflation reduction act credits did was it was intended to really unlock huge private sector investments, and that happened, but now those private sector investments are a question mark because companies that were planning to build battery manufacturing facilities and or vehicle manufacturing are slowing down and in some cases canceling those plans altogether,' Prochazka said. 'If we don't make these investments, we have the potential to fall way behind and lose vast numbers of automotive sector jobs, battery jobs, infrastructure jobs, and those are all really critical to states like Tennessee, but also across the country.' ⏩ President Trump has long spoken against the federal tax credits for EVs and has been vocal about his support for the traditional automotive industry and its workers. Republicans hope to send the bill to the President's desk by July 4. Copyright 2025 Nexstar Media, Inc. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.
Yahoo
6 days ago
- Automotive
- Yahoo
Industry orgs: Budget bill's electric vehicle tax credit rollback could hamper Tennessee momentum
Ford BlueOval City, photographed while under construction in April 2023. (Photo: John Partipilo) Congress may be poised to roll back electric vehicle tax credits and institute new annual taxes on electric vehicle owners — moves that could spell trouble for electric vehicle manufacturers in Tennessee and across the country, according to industry organizations. The U.S. House of Representatives narrowly passed a revised version of President Donald Trump's budget reconciliation bill last week. The 'One Big Beautiful Bill Act' slashes multiple tax credits available to consumers who purchase new, used and commercial electric vehicles (EVs). It also creates a new annual tax for owners of EVs ($250) and hybrid vehicles ($100), money meant to make up for a lack of owners' lack of gas tax contributions toward infrastructure upkeep. The bill now moves to the U.S. Senate for consideration. Should it pass, the EV tax credits will expire on December 31, 2025, instead of the original December 2032 sunset date. Industry advocates and analysts warn that axing the tax credits — which can save buyers up to $7,500 on new, American-made and sourced EVs — will kill the industry's momentum in Tennessee and put investments and jobs at risk. Tennessee has incentivized its growing electric vehicle industry with hundreds of millions of dollars of state contributions and tax breaks over the last decade. The Tennessee Department of Economic and Community Development estimates more than 20,000 Tennesseans are employed by companies with EV operations, and EV projects have injected $16.2 billion in capital into the state since 2017. In West Tennessee, BlueOval City's EV assembly line for Ford's new electric truck is still under construction, and BlueOval SK is gearing up for battery production. The massive $5.6 billion campus is expected to reshape and reinvigorate rural West Tennessee. The Electrification Coalition, a nonprofit, nonpartisan group advocating for electric vehicle adoption and supportive public policy, called the move a 'sledgehammer to Tennessee's EV industry' in a statement published Tuesday. EVs in Tennessee: Uncertainty abounds as Trump targets Biden-era electric vehicle funding 'It would eliminate critical tax credits that are spurring private-sector investments, supporting critical mineral supply chain development, creating American jobs and ensuring the United States remains competitive in the global automotive market,' Electrification Coalition Executive Director Ben Prochazka stated. 'Removing these credits would pull the rug out from under the auto and aligned battery industries at a critical time, immediately putting Tennessee jobs at risk. Industry needs policy certainty and consistency to build domestic and allied supply chains.' Reached by email, the Tennessee Department of Economic and Community Development declined to comment on industry organizations' concerns. Tennessee's electric vehicle industry has grown over the last two decades to include manufacturing plants for Ford, Volkswagen and GM, in addition to multiple companies that produce EV batteries or EV battery components. Nissan also assembled its all-electric Nissan LEAF at its plant in Smyrna until recently. The 2026 LEAF will be assembled at the company's Tochigi Plant in Japan, according to a company spokesperson, meaning the company no longer assembles any EVs or hybrid vehicles in Tennessee. The state has invested hundreds of millions of dollars in the electric vehicle industry over the last decade, according to records kept by the state's Department of Economic and Community Development. This includes a $78 million grant for the recruitment of Ultium Cells LLC, an EV battery manufacturer, to locate jobs for 1,300 workers in Maury County. State lawmakers approved a $900 million incentive package for Ford's BlueOval City campus in 2021, including $500 million in reimbursements for construction work on the campus in Stanton, Tennessee. Some U.S. Republicans are pushing to keep energy tax credits. Tennessee lawmakers aren't among them. While Tennessee's growth in the industry predates tax incentives created by the Inflation Reduction Act under former President Joe Biden to support the production of batteries and battery components in the U.S., those incentives helped companies stand up more cost-competitive electric vehicle plants in the U.S., Harrison Godfrey, managing director of clean energy industry association Advanced Energy United, told Tennessee Lookout in November. An October Washington Post analysis found Tennessee received an estimated $12.6 billion in investments in clean energy projects since the IRA passed in 2022. Ford and GM did not respond to requests for comment on the potential rollback of consumer EV tax credits. But the Alliance for Automotive Innovation — an industry group with members from 42 U.S. automotive companies including GM, Ford, Nissan and Volkswagen — listed support for electric vehicle manufacturing among its 2025 policy priorities. The organization specifically stated that policymakers should maintain both production tax credits for vehicle manufacturers and 'consumer incentives for the purchase of electric vehicles.' The Nissan spokesperson stated the company's position on EV tax credits aligns with the policy priorities of Autos Drive America, a trade association representing international automakers in the U.S., including Nissan. Autos Drive America has worked to increase the number of electric vehicles that qualify for the Clean Vehicle Tax Credit since the IRA's passage in 2022. The Tennessee Chamber of Commerce did not respond to a request for comment. In April, Gov. Bill Lee celebrated the latest EV-related business expansion in Tennessee: a $54 million investment from automotive supplier Avancez in assembly operations at the BlueOval City Supplier Park. A spokesperson for Lee did not respond to a request for comment on how EV tax credit rollbacks may impact Tennessee's continued industry growth. Lee voiced his support for the budget bill in a post on X on May 21, saying it will 'secure the border, unleash American energy & deliver tax cuts — all measures that guarantee opportunity, security & freedom for the American people.' The Electrification Coalition urged U.S. Sens. Marsha Blackburn and Bill Hagerty to 'take a more balanced approach' and preserve the tax credits to ensure the U.S. does not fall 'further behind' in the global EV market. Blackburn and Hagerty did not respond to requests for comment. All of Tennessee's U.S. Representatives voted in favor of the budget reconciliation bill, except for U.S. Rep. Steve Cohen, a Democrat based in Memphis. The bill passed in the House 215-214. All Democratic representatives voted against the bill. Cohen could not be reached for comment by press time. U.S. Republican Reps. DesJarlais, Fleischmann, Green, Harshbarger, Kustoff, Ogles and Rose did not respond to requests for comment. U.S. Rep. Tim Burchett, a Republican representing East Tennessee, said in an emailed statement to Tennessee Lookout that he voted in favor of the bill due to national debt concerns. 'Our nation is currently $36 trillion in debt,' Burchett stated. 'This bill rolls back Biden's Green New Deal tax credits that we don't have the money to pay for. I believe in an all-of-the-above energy approach, but we shouldn't plunge our country deeper in debt as a result.' Burchett also stated that the new tax for EV and hybrid owners 'makes sure all drivers contribute towards our nation's infrastructure,' as 'electric vehicle owners don't pay a gas tax which is used to fund vital highway projects.' The Electrification Coalition and Nissan both expressed support for EV and hybrid drivers paying their 'fair share' toward infrastructure, but the new tax level is more punitive than practical. 'We believe the new annual tax should be more in line with the gas tax equivalent ($150) rather than being set at a level that seems punitive,' the Nissan spokesperson stated. 'While all drivers should pay their fair share, this proposal is nearly three times what the average driver pays in federal gas taxes, which have not covered the cost of infrastructure for nearly 20 years,' Prochazka, of the Electrification Coalition, stated. 'Rather than imposing a punitive tax on a subset of Americans, Congress should identify a fuel-neutral solution to the Highway Trust Fund's structural insolvency.' SUBSCRIBE: GET THE MORNING HEADLINES DELIVERED TO YOUR INBOX
Yahoo
27-05-2025
- Automotive
- Yahoo
Advocates say US House budget cuts will harm NC's electric vehicle industry
An EVgo fast charging station charges a vehicle. (Photo: Loren Elliott for CalMatters) Advocates for speeding the nation's transition to electric vehicles have joined the list of groups and individuals criticizing the massive budget reconciliation bill that was narrowly approved by U.S. House Republicans last week. In a news release distributed Tuesday, Ben Prochazka, the executive director of the nonprofit Electrification Coalition said the bill 'takes a sledgehammer' to North Carolina's electric vehicle (EV) industry and would undo EV tax credits that have led to 16,300 jobs and $20.4 billion in investments in the state. Among the provisions in current law that would be eliminated by the legislation: a tax credit of up to $7,500 for the purchase of an eligible new EV a 30% tax credit up to $100,000 per single item or $1,000 for eligible home refueling infrastructure a credit that supports a portion of the cost of producing certain technologies a credit of up to $7,500 for the purchase of eligible commercial EVs under 14,000 pounds and up to $40,000 for those over 14,000 pounds a credit of up to $4,000 for the purchase of an eligible used EV. The bill 'would eliminate critical tax credits that are spurring private-sector investments, supporting critical mineral supply chain development, creating American jobs and ensuring the United States remains competitive in the global automotive market,' Prochazka said in the statement. 'Removing these credits would pull the rug out from under the auto and aligned battery industries at a critical time, immediately putting North Carolina jobs at risk. Industry needs policy certainty and consistency to build domestic and allied supply chains.' The bill now heads to the Senate, where Prochazka said he hopes North Carolina Republican Sens. Thom Tillis and Ted Budd fight to preserve the EV credits. The legislation also would implement a new car tax, which would levy an annual tax of $250 on owners of electric vehicles and $100 for owners of hybrid vehicles. 'While all drivers should pay their fair share, this proposal is nearly three times what the average driver pays in federal gas taxes, which have not covered the cost of infrastructure for nearly 20 years,' Prochazka said. 'Rather than imposing a punitive tax on a subset of Americans, Congress should identify a fuel-neutral solution to the Highway Trust Fund's structural insolvency.' According to the Electrification Coalition, North Carolina is currently home to eight EV and battery manufacturing facilities.
E&E News
23-05-2025
- Automotive
- E&E News
Congress ends the road for EV support
Congressional Republicans on Thursday effectively parked the electric vehicle on the side of the road and abandoned it as tool for American policy. The moves were thorough and unambiguous. The Senate sank California's effort to remove gasoline-powered cars from its roads within a decade, while the House in its budget reconciliation bill erased nearly every special treatment that Democrats created a few years ago to make EVs easier to buy or manufacture. It could not be a starker turn from four years ago, when then-new President Joe Biden made EVs the centerpiece of his efforts to create jobs, fight climate change and combat China. Advertisement Reactions to Congress' actions revealed how divisive federal support for EVs has become. Republicans see the government picking winners, while Democrats see a crucial nation-building tool — and both sides claim their approach is best for countering China's rise. Ben Prochazka, the executive director of the Electrification Coalition, a nonprofit that promotes EVs, said in a statement that the House's bill 'takes a sledgehammer to the U.S. EV industry and undermines efforts to build robust, secure and reliable access to critical minerals.' Meanwhile, two oil and gas industry groups, the American Fuel and Petrochemical Manufacturers and the American Petroleum Institute, issued a joint statement calling the Senate's vote 'a victory for American consumers, manufacturers, and U.S. energy security.' The Senate's ending of the California clean-cars waiver also drew strong support from the auto industry, including parts makers and auto dealers. 'Congress has safeguarded this important hub of innovation and American engineering prowess,' said the Specialty Equipment Market Association, which represents manufacturers of auto parts. It noted that a third of its members' products are meant for internal-combustion engines. While the GOP's moves were decisive, they were not conclusive. The House's giant bill faces a rewrite in the Senate, and the Senate's killing of the waiver immediately drew a court challenge from California. Nonetheless, the consequences could be profound for the trajectory of Americans' EV adoption and of U.S. auto manufacturing. Observers of the EV market worry that Congress' withdrawal of support at best discourages investment in EVs and at worst clears the field for China to further dominate advanced cars and their batteries. 'This market is less certain than it was a few days ago, and that's going to be bad for investment,' said Nick Nigro, the founder of Atlas Public Policy, which studies EV trends. The objectors cave Ever since Trump returned to office with a united Republican Congress behind him, supporters of EVs have wondered: Could a small band of House Republicans buck their party and take a stand for the EV? On Thursday, the answer came back with a resounding no. Only two Republicans voted against the bill, which sought to removed virtually every stick and carrot to promote the electric vehicle, while adding a few penalties besides. EV advocates had been hoping for a different outcome. The benefits of Biden's policies, especially from the giant Inflation Reduction Act, spurred $208 billion of factory investment, the vast majority of it in Republican congressional districts. Yet as the vote came in, it was clear that Republicans like Buddy Carter of Georgia, whose district includes Hyundai's huge new EV plant outside Savannah, and Mark Amodei of Nevada, whose district encompasses a battery cluster around Reno, would not vote against the EV tax cuts, even though they threatened to do so last year. Thursday 'didn't win the day for anyone to demonstrate that profile in courage,' said Nigro. Other days are ahead: The Senate has members who are on the record in support of clean energy rules, including Lisa Murkowski (R-Alaska), Thom Tillis (R-N.C.) and Jerry Moran (R-Kan.). What the House did The House bill removed most of the incentives that Biden and a Democratic congress created in 2022 in the Inflation Reduction Act, while making the purchase of an EV more expensive than a comparable gasoline vehicle. The actions are a reflection of the gulf between the Biden and Trump views of how to grow the U.S. auto industry. Biden focused on government incentives and regulations, while Trump has erected tariffs against foreign-made vehicles. Biden's approach was 'more about manufacturing and trade policy, to get both domestic and foreign companies to build their supply chains in America,' said Loren McDonald, an analyst for Paren, an EV data consultancy. Trump's attitude is 'the exact opposite,' McDonald added, 'putting everyone in the penalty box with tariffs.' The increase in price came in the form of a $250 fee to be assessed on an EV's annual registration. Republicans say the fee is necessary to offset the fact that electric vehicles bypass gas stations and in doing so, don't pay into the Highway Trust Fund, which is funded by taxes on sales of gasoline. Hybrids would also pay a $100 fee, including milder hybrids that can't plug into an electric socket. The most well-known EV incentive, a $7,500 tax credit to buy a new EV, would sunset at the end of 2026, instead of 2032. Furthermore, the only vehicles that would be eligible are those from automakers that have not yet sold 200,000 EVs — a measure that would remove any car made by Tesla, General Motors and possibly Toyota, Nissan and Ford. A $4,000 tax credit for buying a used EV also would go away by the end of this year, along with a $7,500 credit for businesses buying EVs as fleet vehicles. Other sweeteners are less visible but key to the sprawling EV ecosystem. For example, one provision would end a tax credit that gives a substantial tax discount for homeowners and businesses that build charging stations. Another would end a program to fund electric heavy-duty trucks, and yet another halts billions of dollars that is underwriting a transition to electric goods movement at ports. A modification to another part of the tax code, called 45x, might have immediate impacts on battery-makers and their suppliers, because it would drastically curtail their ability to use materials from China. The House bill bars battery supplies from 'foreign entities of concern,' a government classification of unsavory countries to trade with and that is designed to exclude China from benefiting from U.S. industry. Republicans often criticize Biden's EV policies for not fully slamming the door on Chinese inputs. The Inflation Reduction Act did close that door, but more slowly. The Biden administration applied the limit by stepping down Chinese content over seven years and never cutting Chinese supply off completely. That was an acknowledgment of the fact that it is currently impossible to make a China-free battery. China overwhelmingly controls the battery supply chain, from mines and chemical refineries to cathode materials and finished battery cells. Senate wastes the waiver Meanwhile, the Senate took the unprecedented step of tossing out a waiver that allowed California to set its own aggressive goals for EV adoption. The 51-44 vote included all Republicans and one Democrat, Sen. Elissa Slotkin (D-Mich.). The House voted to overturn the waiver earlier this month. The vote was especially controversial because the Senate brushed aside both its own parliamentarian and the Government Accountability Office, both of which said that the body did not have the authority to overturn the rule. Shortly after the Senate's vote on Thursday, California said it would sue to save its waiver. EPA has granted more than 75 clean-vehicle waivers to California since the relevant law passed in 1967, according to a tally by the Natural Resources Defense Council. This waiver, for a program known as Advanced Clean Cars II, is the first to be overturned, alongside two others that reduce pollution from diesel trucks. The waiver would have required 35 percent EV sales as of next year, by each automaker, a number that no state including California was close to achieving. It was the growing gap between tepid EV sales and the ambitious California mandate that led to strenuous opposition from groups like the National Automobile Dealers Association. 'This unrealistic mandate, coupled with an insufficient and unreliable charging infrastructure, would have drastically reduced consumer choice and raised prices for new and used cars and trucks for all Americans,' the group said. This story also appears in Climatewire.
