GOP’s Clean Energy Funding Axe: Your Electric Vehicle Dreams Just Got $7,500 More Expensive

Why slash now? Republicans have disclosed draft budget legislation targeting virtually every clean energy tax credit established by the Inflation Reduction Act. The timing couldn’t be more pointed as EV adoption was finally gaining momentum. Their plan doesn’t just trim—it hacks away at incentives that made cleaner vehicles accessible to average Americans.

The proposal terminates the popular $7,500 clean vehicle tax credit by the end of 2025. No gradual phaseout, just gone. That Tesla or Ford Lightning you’ve been eyeing? Suddenly costs an extra $7,500. Thanks for nothing.

The death knell for EV affordability—$7,500 more overnight with no warning, no transition, no mercy.

Used EV buyers aren’t spared either. The $4,000 tax credit for previously-owned clean vehicles faces elimination. So much for affordability. Commercial fleet operators would lose up to $40,000 per vehicle in tax incentives—devastating for businesses trying to electrify their operations.

And charging infrastructure? That credit’s on the chopping block too.

Wind and solar aren’t completely decimated but face accelerated phaseouts of their “tech-neutral” production incentives. The phaseout timeline has been advanced by three years compared to what the IRA originally established. Some Republicans claim these industries are already “distorting investment signals.” Translation: they’re working too well.

The plan slashes about $844 million from clean energy grants overall. The Department of Energy‘s loan program that’s successfully funded numerous clean tech innovations? Gutted. EPA’s Greenhouse Gas Reduction Fund? Targeted for elimination.

Meanwhile, fossil fuels get the red carpet treatment. The proposal expedites natural gas permitting, boosts oil drilling, and expands the Strategic Petroleum Reserve. This approach mirrors China’s conflicting energy strategy where energy security concerns are prioritized over climate commitments despite renewable growth. Apparently, last century’s energy sources deserve tomorrow’s investment.

These proposals are packaged for inclusion in a broader Trump-supported tax plan, though moderate Republicans and senators might resist the most severe cuts. The battle lines are drawn between those claiming market readiness for renewable shift and those clinging to fossil fuels.

One thing’s certain: if these cuts pass, going green just got a lot more expensive. Not exactly the bargain Americans were promised. According to the Ways and Means Chairman, the plan aims at holding the woke elite accountable for tax code benefits they receive.