Ohio EV fans concerned as federal tax credits face elimination

Farah Siddiqi

One thing prompting some Ohioans to make the switch to an electric vehicle has been a $7,500 federal tax credit for the purchase but it might be going away.

As part of the big budget reconciliation bill now in Congress, the EV credit would be phased out. President Donald Trump has pledged to dismantle what he refers to as the "electric vehicle mandate," challenging goals set during the Biden administration aiming for half of new vehicle sales to be electric by 2030.

John Higham, board member of the Electric Vehicle Association, believes that would definitely slow EV growth.

"It's not going to kill the electric vehicle," Higham asserted. "It might slow the acceleration of the adoption of the electric vehicle but it's certainly not going to reverse the trend."

More than 76,000 electric vehicles were registered to Ohio drivers as of last year, less than 3% of all vehicles in the state. Most are plug-in hybrid models.

The legislation could also affect EV manufacturers like Tesla, which has significant investments in Ohio. Higham noted the economic effects of repealing the tax credit might be most pronounced in areas which have benefited from EV-related manufacturing jobs.

"That economic engine that is in those 'red' districts -- where there's new battery manufacturing put in, new automotive manufacturing put in -- those are the voters that are going to feel it the most, are in those red districts," Higham projected.

Ohio does not offer state-level EV tax incentives, but residents may be eligible for federal tax credits if the vehicle qualifies, at least for now, as the U.S. Senate debates the contents of the budget reconciliation bill.