Future of green incentives under Trump
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Electric vehicle buying is expected to rise this winter as consumers look to take advantage of the $7,500 tax credit that President-elect Trump has threatened to repeal.
Why it matters: EV tax credits represent just one of the green incentives introduced under President Biden's Inflation Reduction Act that could be removed under Trump.
- But experts say Illinois consumers will have more than a few months to use them, regardless of what Trump decides.
The big picture: "Illinois has received $430 million in [Inflation Reduction Act] Climate Pollution Reduction Grant funding that is already being put to work to accelerate electrification, expand our clean energy workforce programs, and more," Angela Xu, municipal engagement manager at the Illinois Environmental Council, tells Axios.
- "This is progress we can't afford to slow down on here in Illinois or anywhere else across the country."
State of play: Illinois has already gotten about 40% of its Inflation Reduction Act funds, but the remaining 60% are expected to be distributed under the next administration if the polices are not repealed.
Home energy rebates give consumers money back for weatherizing their homes and installing heat pumps, electric stoves and other energy-efficient appliances.
- Illinois is slated to receive about $132 million for the rebate program but funds are being distributed in installments that could end under Trump, officials warn.
Climate pollution reduction grants fund state efforts to reduce greenhouse gas emissions through transportation, agriculture, electricity generation, waste management and more. Illinois has already received $430 million under this program.
Under Illinois' Climate and Equitable Jobs Act (CEJA), the general assembly this year allocated $14 million for EV rebates residents can start applying for Jan. 21, 2025.
Between the lines: While Trump has vowed to roll back environmental provisions of the Inflation Reduction Act, the policies have pumped billions in economic investment into red states, whose leaders are expected to resist rollbacks.
- Eighteen GOP lawmakers have already sent a letter opposing the repeal of Inflation Reduction Act energy tax credits.
- Any formal changes to the tax credits would require issuing a notice of proposed rulemaking and gathering public comment on the changes, a process that could take several months after the new rules are proposed, U.S. Treasury Department officials say.
The bottom line: If you were thinking about buying an electric car, weatherizing your home or installing a heat pump, you still have time to cash in on rebates, but don't tarry.