Honda unveils its 0 Saloon prototype, a futuristic vehicle concept, during the 2025 Consumer Electronics Show in Las Vegas on Jan. 9, 2025. (Getty Images)
Former President Joe Biden implemented a tax credit of up to $7,500 for the purchase of EVs under the Inflation Reduction Act in an effort to push auto buyers to select greener alternatives.
However, President Donald Trump has been walking back the Biden-era green energy policies, and the Republican-led Congress is seeking to end the use of taxpayer dollars for EV purchases.
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Arrington's legislation aims to stop taxpayer money from subsidizing the purchase of luxury electric vehicles and close the "loophole" that allows for individuals to get a tax credit for leasing an EV.
"I will remain on mission to repeal Green New Deal climate handouts along with other woke and wasteful spending programs while we restore fiscal sanity, reignite prosperity, and Make America Great Again," the congressman said.
President Donald Trump recently signed an executive order recently ending former President Joe Biden's mandate that 50% of all new car sales be electric vehicles by 2030. (Scott Olson)
Stewart said axing the EV tax credit gives members of the auto industry the opportunity to shift back to traditional production lines.
Tesla CEO Elon Musk, who is heading Trump's newly formed Department of Government Efficiency, revealed in July that he supports getting rid of the credit. "Take away the subsidies," Musk posted to X, saying "it will only help Tesla."
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Companies that are financially sound, such as Tesla, could benefit if the playing field for electric vehicles is narrowed, while the smaller companies that rely on the tax credit for consumer affordability could face setbacks, analysts have suggested.
Aubrie Spady is a Writer for Fox News Digital.
https://www.foxnews.com/politics/gop-lawmaker-seeks-slam-brakes-bidens-woke-wasteful-ev-tax-credit