Electric Vehicles and the Inflation Reduction Act

February 11, 2025

The Guardian article addresses how "Donald Trump’s attempts to slash incentives for electric cars would cause sales of the vehicles to plummet." The major component of slashing incentives is the targeting of a key tax credit for Americans buying an EV, worth up to $7,500. "Should [Trump] succeed... the impact would be significant," according to the study from Shapiro and co-authors. Electric car sales could fall by 27% without the incentive.