GOP wants EV tax credit gone; it would be a disaster for Tesla

In response, Trump is threatening Tesla’s subsidies again.

The Republican Party's opposition to tax credits for electric vehicles has stepped up a notch. As its members in the US Senate add their input to the budget bill that came from their colleagues in the House of Representatives, among the changes they want to see is a faster eradication of the IRS clean vehicle tax credit. The tax credit provides up to $7,500 off the price of an EV as long as certain conditions are met, and the language from the House would have given it until the end of the year. Now, it might be gone by the end of September.

The looming passage of the bill appears to have reopened the rift between Tesla CEO Elon Musk and the Republican Party, which the billionaire funded to the tune of hundreds of millions of dollars in the last election. After a brief war of words earlier this month that was quickly smoothed over when Musk apologized to President Trump, it seems there's the potential for strife again.

Yesterday, Musk once again took to his social media platform to denounce the budget bill, threatening to form a third political party should it pass and reposting content critical of the GOP spending plan.

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GOP budget bill poised to crush renewable energy in the US

Say goodbye to clean-energy tax credits, hello to new oil wells.

Far from the front lines of the climate crisis, 100 men and women in air-conditioned offices, 61 of them millionaires, are making decisions that could increase United States carbon dioxide emissions, and the warming of the climate they are driving, for decades to come.

In the latest political wrangle over energy and climate policy, a group of Republican senators over the weekend added provisions to the U.S. federal budget bill that, as currently written, would end clean energy tax credits at the personal level and at utility scale and increase taxes on foreign-made parts for solar power equipment.

Ending federal subsidies for most renewable energy projects, including residential heat pumps, for example, would affect thousands of projects that are already in planning or development and jeopardize future investments in manufacturing renewable energy equipment.

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