Advocates say US House budget cuts will harm NC's electric vehicle industry

An EVgo fast charging station charges a vehicle. (Photo: Loren Elliott for CalMatters)
Advocates for speeding the nation's transition to electric vehicles have joined the list of groups and individuals criticizing the massive budget reconciliation bill that was narrowly approved by U.S. House Republicans last week. In a news release distributed Tuesday, Ben Prochazka, the executive director of the nonprofit Electrification Coalition said the bill 'takes a sledgehammer' to North Carolina's electric vehicle (EV) industry and would undo EV tax credits that have led to 16,300 jobs and $20.4 billion in investments in the state.
Among the provisions in current law that would be eliminated by the legislation:
a tax credit of up to $7,500 for the purchase of an eligible new EV
a 30% tax credit up to $100,000 per single item or $1,000 for eligible home refueling infrastructure
a credit that supports a portion of the cost of producing certain technologies
a credit of up to $7,500 for the purchase of eligible commercial EVs under 14,000 pounds and up to $40,000 for those over 14,000 pounds
a credit of up to $4,000 for the purchase of an eligible used EV.
The bill 'would eliminate critical tax credits that are spurring private-sector investments, supporting critical mineral supply chain development, creating American jobs and ensuring the United States remains competitive in the global automotive market,' Prochazka said in the statement. 'Removing these credits would pull the rug out from under the auto and aligned battery industries at a critical time, immediately putting North Carolina jobs at risk. Industry needs policy certainty and consistency to build domestic and allied supply chains.'
The bill now heads to the Senate, where Prochazka said he hopes North Carolina Republican Sens. Thom Tillis and Ted Budd fight to preserve the EV credits.
The legislation also would implement a new car tax, which would levy an annual tax of $250 on owners of electric vehicles and $100 for owners of hybrid vehicles.
'While all drivers should pay their fair share, this proposal is nearly three times what the average driver pays in federal gas taxes, which have not covered the cost of infrastructure for nearly 20 years,' Prochazka said. 'Rather than imposing a punitive tax on a subset of Americans, Congress should identify a fuel-neutral solution to the Highway Trust Fund's structural insolvency.'
According to the Electrification Coalition, North Carolina is currently home to eight EV and battery manufacturing facilities.

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