Federal EV Tax Credits Might Be Cut Earlier but 45V Hydrogen Credits Could Have Window Extended

U.S. Senate Republicans have updated the Trump administration’s tax and budget bill to end the $7,500 tax credit earlier than the previous version of the bill. It was going be ending 180 days after passage of the law, which is expected to be by July 4, but the new Senate version will end it by Sept. 30. Trump’s Big Beautiful Bill, which passed the House last month, would also accelerate the phase-out of incentives for solar, wind, and energy storage projects, while adding additional taxes if they use any materials from China.

In a surprise move, the Senate revised the budget bill to extend the eligibility window for the 45V hydrogen production tax credits. The updated draft from the Senate Budget Committee brings the construction start deadline from January 1, 2026, to December 31, 2027. It grants developers two additional years to qualify for the incentive, which offers up to $3 per kilogram.

The National Electric Vehicle Infrastructure (NEVI) Formula Program’s $1 billion in electric vehicle charging funds has been reactivated by a federal judge. That comes after a Jan. 29 executive order set up the framework, and a Feb. 6 Department of Transportation (DOT) decision froze the funds. U.S. District Court for the Western District of Washington Judge Tana Lin sided with 16 states, the District of Columbia, and a coalition of environmental groups, ordering the release of federal dollars under the NEVI funding program. The federal justice ruled that the Trump administration’s decision to withhold NEVI funding lacked legal authority, and the plaintiffs demonstrated a likelihood of success on the merits. She also noted that the balance of equities and public interest weighed in favor of granting preliminary relief. The ruling will be taking effect this week, and the Trump administration is expected to appeal it.

New Jersey awards grants: The New Jersey Department of Environmental Protection (NJDEP) awarded $983,950 to reduce vehicle air pollution and greenhouse gas emissions. The eMobility planning grants have been awarded to Avenues in Motion: $145,450 for projects in Morristown and Phillipsburg; Cross County Connection TMA: $400,000 for projects spanning Salem, Cumberland, Atlantic and Cape May counties; EZ Ride: $200,000 for projects in Plainfield and Orange; and Greater Mercer TMA: $238,500 for projects in East Windsor/Hightstown, Toms River and Lakewood.  The eMobility planning grant program will help these four transportation management associations (TMA) work with partner communities improve transportation by alleviating traffic congestion and connecting residents to jobs and other destinations. Additional funding will be available for associations that can include electric shared-use transportation in their planning.

European EV sales: Czech Republic-based Škoda did well in European electric vehicle sales in April, with its Elroq leading the field at 6,630 registrations and another one of its vehicles making the top 10. That comes from the European Alternative Fuels Observatory. Parent company Volkswagen was pleased, taking three of the spots on the sales list. The Renault 5 / Alpine A290 took the second position with 5,633 units sold in April. Volkswagen took the next three spots — ID.3 (5,459), ID.7 (5,332), and ID.4 (5,076). The Kia EV3 was next at 4,752, the BMW iX1 followed at 4,291. Škoda Enyaq sold 4,238 units and came in Number 8 on the list. The Citroën ë-C3 sold 3,541, while the Tesla Model Y rounded out the top ten at 3,303 units sold in April. Volkswagen owns the Skoda brand, and outside of the Czech Republic, Skodas are made in Slovakia, India, Russia and China, predominantly in Volkswagen plants.

Tesla robotaxi ride safety being examined: The 22 June Tesla robotaxi launch in Austin, Texas, initially appeared successful with videos flooding the internet from happy passengers. But as the videos continued, problems started appearing — enough that the National Highway Traffic Safety Administration (NHTSA) had opened an investigation into the service. Video footage from at least 11 rides showed incidents such as a Tesla robotaxi failing to make a left turn and instead drove into a lane meant for oncoming traffic, then corrected itself by driving across a double yellow line. Other videos may have shown the electric, self-driving cars exceeding the speed limit, braking for no discernible reason and dropping passengers off in the middle of an intersection. Tesla staff have been riding along on these trips, to take over under emergency conditions. They’re seated on the front passenger side.

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