FILE PHOTO: A charging port is seen on a Mercedes Benz EQC 400 4Matic electric vehicle at the Canadian International AutoShow in Toronto, Ontario, Canada, February 13, 2019. REUTERS/Mark Blinch
HOUSTON - Electric vehicle demand is likely to drop if the United States eliminates a tax credit worth up to $7,500 as President Donald Trump has proposed, a senior U.S. Transportation Department official said on Tuesday. The White House said on Monday that nixing the credit, which phases out after companies hit 200,000 vehicles sold, could save taxpayers $2.5 billion over the next decade. Automakers have pushed for the credit to be extended.
“As you take away some of these incentives, demand will likely come down a bit,” Derek Kan, the Transportation Department’s under secretary of transportation for policy and a former Lyft Inc executive, said at the CERAWeek energy conference in Houston. “When you take away a tax credit, we know from basic economics demand will likely fall because the price is a little high.”
Thank you Captain Obvious.
It's a good thing we're going to be the leading producer of oil and gas in the world thanks mr. President
So don't drop the tax credit then…
Well, it's important to support the oil industry.