**Potential EV Tax Credit Cut Under Trump Administration Threatens Industry Growth**

A potential move by the Trump administration to cut the $7,500 consumer electric vehicle (EV) tax credit could significantly impact the American auto industry, according to a report by Reuters. The tax breakup is part of a broader tax overhaul and could jeopardize the incentives put in place by President Joe Biden's Inflation Reduction Act (IRA) of 2022, which aimed to lower the initial cost of EVs and promote domestic EV production.

The removal of the tax credit threatens to undermine the progress made by states like Georgia, which has become a national leader in EV production. Georgia's economic development projects include significant investments in EV factories, battery factories, and other corporate commitments throughout the battery supply chain. Although Biden's plans for electrifying the automotive industry were well-received, any reversal of these incentives could be damaging.

Gov. Brian Kemp's spokesperson criticized the Biden administration for what he saw as policies that unfairly chose "winners and losers." The Electrification Coalition, an environmental nonprofit, warned that ending federal incentives could threaten hundreds of thousands of American jobs and that American manufacturers who have invested heavily in transitioning to electric propulsion would face a setback.

This potential policy change could benefit international competitors like China. According to Kevin Ketels from Wayne State University, retracting the credit would leave the U.S. as an outlier in the global shift towards electric vehicles. The Zero Emission Transportation Association (ZETA) stressed that federal tax credits have been critical in establishing the "battery belt" that extends from Georgia through Kentucky to Michigan, a major automobile hub.

High-profile automakers like Hyundai have accelerated their plans in response to the IRA's incentives. Hyundai's $7.6 billion EV factory near Savannah exemplifies this trend, although the company declined to comment on the potential policy change. ZETA argued that removing these incentives would hurt job growth and undercut investments that aim to bring EV jobs to America.

Rivian, an EV startup with plans to build a $5 billion factory in Georgia, also expressed concerns. Most of Rivian's current models do not qualify for the tax credits, although their forthcoming R2 crossover is expected to qualify and could reach more price-sensitive consumers.

The American Fuel & Petrochemical Manufacturers group supports ending the tax credit, calling it a poor use of taxpayer dollars. They, along with Trump, have labeled the incentives as a federal "EV mandate." However, the potential policy shift could considerably slow down EV adoption in the U.S., leaving the country trailing behind the global trend towards electric vehicles.