What would happen if the Trump administration puts a stop to electric vehicle tax credits next year? It will probably be a bumpy year, with the market counting on a few states to offer good incentives.
Don’t get your hopes up too high, says Jay Turner, an environmental studies professor at Wellesley College who studies the market. Californians will be happy to see Gov. Gavin Newsom’s recent announcement that the state will work hard at filling the gap if the feds cut their tax incentive.
What about other states? Colorado and Massachusetts already offer substantial support that EV buyers can combine with those on offer from the federal government, Turner said. But the gains made through the Inflation Reduction Act of 2022 will likely dry up as the Republican-led House and Senate come together in January.
Will Trump’s newfound friend and ally, Tesla CEO Elon Musk, tap into their relationship when it comes to EV sales? Tesla long ago went over the line on the cap of EVs sold getting access to the federal tax credit. That changed at the beginning of 2023 with the Inflation Reduction Act changing the rules — with some of the Tesla models qualifying depending on specifications for each tax payer. The KBB chart above provides some of those details. As for Tesla vehicles under the newer guidelines and whether you qualify, that will depend on your own tax status under the Inflation Reduction Act. “Your eligibility for any tax credits depends on your personal tax situation. We recommend speaking with a tax professional for guidance,” Tesla’s website says.
How Utilities Can Thrive As EV Demand Grows: Utilities can handle more demand on their grid as electric vehicles grow in numbers and charging hours, according to a new study by AES Indiana, a utility subsidiary of global power firm AES Corp. The study analyzed AES Indiana’s service territory with different applications of how it uses data and sets its rates. Utilities will be able to save money even as EV demand grows as they prepare to charge a larger number of EVs in the coming years — even if EV adopting in their system isn’t yet a high level. EVs have large battery packs with the potential to both load and offload electricity, which will be part of solving grid problems. With growing out a grid system can be costly, building it out with realistic usage data would help solve the problem, according to the study.
What about hydrogen under Trump administration?: Like other alternative fuels, President Trump has not been supportive. As for hydrogen, “The one thing I can’t get used to is hydrogen. You know, the story with hydrogen, it’s great until it blows up,” newly reelected Trump said during a rally in October 2024, repeating a claim he has made that hydrogen vehicles run a risk of exploding. While hydrogen is seeing a growing list of users for heating, industrial machinery, and transportation, it’s likely to be affected by Trump’s rollbacks tied to the Inflation Reduction Act of 2022. One of those benefits was the 45V hydrogen tax credit. One advantage it has is that many hydrogen hub projects are concentrated in Republican-held states, says Kyle Hayes, a partner of Foley & Lardner, which implies that its unlikely to be on Trump’s list of rollbacks. Hydrogen secured a lot of funding through the H2Hubs program in the federal funding. Two hydrogen hub projects in the US Midwest, and Texas, secure up to $2.2bn in federal funds.
California charging incentives: Don’t forget that you can save money with Communities in Charge electric vehicle (EV) charging incentives. Up to 100% of eligible Level 2 AC costs may be covered, says Chargepoint. The California Energy Commission’s Communities in Charge incentive is providing $30 million in EV charging station funds for qualifying sites. Funds cover up to $6,500 per Level 2 AC port or 100% of eligible costs, whichever is less.
RNG looking good: During an Oct. 29 earnings call, BP CEO Murray Auchincloss said he was still optimistic that BP subsidiary Archaea could build 15 new renewable natural gas plants in 2024, despite the company only being about halfway to that goal by the end of the third quarter. Seven plants are ‘online and operating.’ Getting up to 15 is realistic for Archaea, he said. Other companies are going forward, too. Waste Management (WM) expects to have seven RNG projects online by end of the year in its 20-project portfolio. Republic Services has finished four projects so far this year, and expects four more to be done by end of year. Smaller waste management companies are also going forward, Wastetdive reports.