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White House Seeks to End Subsidies for Electric Cars, Renewables
Written by <a href="index.php?option=com_comprofiler&task=userProfile&user=81"><span class="small">Reuters</span></a>   
Sunday, 09 December 2018 09:25

Excerpt: "White House economic adviser Larry Kudlow said on Monday the Trump administration wants to end subsidies for electric cars and other items, including renewable energy sources."

Electric cars sit charging in a parking garage at the University of California, Irvine. (photo: Lucy Nicholson/Reuters)
Electric cars sit charging in a parking garage at the University of California, Irvine. (photo: Lucy Nicholson/Reuters)


White House Seeks to End Subsidies for Electric Cars, Renewables

By Reuters

09 December 18

 

hite House economic adviser Larry Kudlow said on Monday the Trump administration wants to end subsidies for electric cars and other items, including renewable energy sources.

Asked about plans after General Motors Co (GM.N) 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.”

The tax credits are capped by Congress 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. Tesla Inc (TSLA.O) said in July it had hit the threshold. Other automakers may not hit the cap for several years.

Experts say the White House cannot change the cap unilaterally. U.S. President Donald Trump 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 U.S. House 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 Congress for months to lift the cap on electric vehicles or make other changes, but face an uphill battle make changes before the current Congress expires.

In October, Senator Dean Heller 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 John Barrasso a Republican who chairs the Senate Environment and Public Works Committee, proposed legislation to end the EV tax credit entirely.

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Last Updated on Sunday, 09 December 2018 10:22
 

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+12 # Citizen Mike 2018-12-09 11:36
Just amazing how Republican policy is geared to doing as much harm as possible in every direction.
 
 
+14 # Elroys 2018-12-09 13:22
This is nothing less than a cabal of depraved, corrupt and genocidal criminals in the current administration. If you'd like your children and future to have a life, these criminals - with trump as the most corrupt gang member - must be taken down, sent to jail for a long time.
However, if they believe that early subsidies for electric cars, solar, wind and other clean renewable energy production is unfair to the American taxpayers, then they must also believe that subsidizing Exxons and all fossil companies should end immediately, Don't you think a 100 years of subsidies is a bit "unfair". And not merely the few billion $ most people talk about. It's the 100s of billions of $ every year that these oil companies get yearly
Does anyone reading this get their garbage picked up free of charge? Do you think that the coal, oil and gas companies should have their "garbage" picked up free of charge? Their garbage is our undoing - CO2, methane and more - one trillion tons of excess CO2 need to be picked by someone - we're dead if we think this "garbage" is just thrown "away" - there is no "away" folks.
At a mere $50 / ton, that's a $50 Trillion cost that will be paid - either by all of humanity being "charged" by mother nature by having us thrown out of the "house" or by someone ready to cleanup the vast mess being made. Kudlow and trump want to continue subsidies to their friends in the oil / gas / coal business. This is completely insane.
 
 
0 # economagic 2018-12-09 16:25
Indeed. For another aspect of the same scam, see my comment to "The Next Big Legal Case to Assassinate Unions" on RSN yesterday.
 
 
+1 # Texas Aggie 2018-12-09 18:21
You expressed my first thought. Why should the fossil fuel industries be getting anything?

The purpose of subsidies is to help a new industry get on its feet so that it can then maintain itself. The fossil fuel industry has been going for over a century and shouldn't need any subsidies, so there is no reason to give them any. If they can't stand on their own by now, there is no hope for them.
 
 
+5 # economagic 2018-12-09 15:43
Read the Wikipedia article on Larry Kudlow. He has a degree in history from Rochester University, but apparently he didn't learn anything as he has spent his entire career in the tooth-fairy school of economic thought. Think "Laffer Curve."
 
 
0 # elizabethblock 2018-12-09 17:29
But of course - of course! - keep the massive subsidies for fossil fuels.
 
 
0 # draypoker 2018-12-19 14:48
Apparently the Tory government in Britain is also ending support for renewables by removing subsidies for solar energy sold to the grid owners. There seems to be a worldwide infection of stupidity.