Trump previously pledged to undo what he called the "electric vehicle mandate," referencing the Biden-era goal for half of new vehicle sales in the U.S. to be electric by 2030.
John Higham, board member of the Electric Vehicle Association, said the administration's approach may slow the growth of the EV industry.
"It's not going to kill the electric vehicle," Higham stressed. "It might slow the acceleration of the adoption of the electric vehicle but it's certainly not going to reverse the trend."
Data from the U.S. Department of Energy showed about 40,000 EVs are on Utah roads. All EV owners in the state must pay an annual registration fee of about $140. The U.S. House passed the massive budget bill last week, moving it to the Senate for consideration.
House lawmakers have proposed legislation to extend the tax credit until the end of the year. Analysts said Tesla, the largest EV automaker, owned by Trump adviser Elon Musk, would be affected the most by the loss of the tax credit. Higham projected the proposal to repeal the tax credit could break down party lines.
"That economic engine that is in those red districts, where there's new battery manufacturing put in, new automotive manufacturing put in," Higham pointed out. "Those are the voters that are going to feel it the most, are in those red districts."
According to the Argonne National Laboratory, consumers can save more than $6,000 in lifetime repair and maintenance costs from an EV compared to a gas-fueled vehicle. It is estimated the federal government spent about $2 billion on EV tax credit payments in 2024.
