Supporters of electric vehicle ownership said there are a number of advantages to owning one.
Studies show EVs can convert 85% to 90% of their energy into forward movement. A majority of the electricity used in an EV vehicle is American-made and an EV can be charged at home, just like a cellphone.
Despite the benefits and their popularity, Rep. Mike Johnson, R-La., the Speaker of the House, has proposed removing a $7,500 tax credit for EV owners as part of President Donald Trump's goal to restructure the country's budget.
John Higham, board member of the Electric Vehicle Association, wondered if it will cause potential EV car buyers to back away.
"Do I think if this $7,500 tax credit suddenly disappeared, it's not going to kill the electric vehicle?," Higham asked. "It might slow the acceleration of the adoption of the electric vehicle but it's certainly not going to reverse the trend."
Trump's budget proposal could pass between the end of May and the end of July. Higham acknowledged the tax credit is a strong motivator for people to buy or lease an electric car. And he expects a 10% to 12% growth rate for purchases. Higham admitted the number could drop to between 8% and 9% if the tax credit disappears.
As of December 2023, the Department of Energy shows slightly more than 26,000 Hoosiers own an electric vehicle.
The Republican controlled House has proposed legislation to extend the tax credit until the end of 2025 and analysts said the largest EV automaker, Tesla, owned by Trump associate Elon Musk, would be affected the most if the tax credit ends. Higham noted the fallout of repealing the tax credit could break down along party lines.
"That economic engine that is in those red districts, where there's new battery manufacturing put in, new automotive manufacturing put in," Higham pointed out. "Those are the voters that are going to feel it the most, are in those red districts. And so there are Republican congressmen who are saying, not quite so fast. It is harder to repeal than I think most people realize."
In 2024, it is estimated the federal government spent about $2 billion in advance point-of-sale EV tax credit payments. Buzz about the tax removal may push consumers to buy EVs sooner than later, to take advantage of the credit before it disappears.
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Workers and families in Indiana could feel the impact of the "One Big Beautiful Bill Act" moving through the U.S. Senate. The legislation would roll back clean-energy tax credits and investments passed in the Inflation Reduction Act.
Jim Clarida, business manager for the International Brotherhood of Electrical Workers in northwest Indiana, said those investments have helped create jobs and attract nearly $8 billion in private energy development to the state.
"Since the IRA was passed," he said, "$7.8 billion in private clean-energy investments have flown into my home state here in Indiana, fueling the construction and manufacturing of EV battery plants, expanding solar and wind developments."
Clarida said Indiana has about two gigabytes of utility-scale solar projects under its belt and has another gigawatt in the pipeline.
Supporters of the big budget bill have argued that the changes are necessary to cut federal spending and reduce the national deficit by eliminating costly subsidies, although it also includes an extension of tax cuts that benefit mostly wealthy Americans.
U.S. Senate minority leader Chuck Schumer, D-N.Y., warned that the bill could drive up household electricity costs by hundreds of dollars and eliminate clean-energy job growth across the Midwest.
"This could create a recession if we lose them all," he said. "And so first, our union members - not just electricians, but everyone - should know that jobs are at stake in their union, either for themselves or their brothers and sisters who are in the union."
Indiana ranks among the top 10 states for clean-energy job growth since the Inflation Reduction Act passed. Schumer urged Hoosiers to weigh in on what he calls "critical energy investments" as the Senate debates the bill.
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A federal proposal moving through Congress could stall Michigan's booming rooftop solar industry by ending key tax credits that have fueled clean energy growth, nationwide.
What is being called the "One Big Beautiful Bill Act" would eliminate the 30% credit for rooftop solar and other home energy systems, including those leased by companies.
Michigan leads the nation in Inflation Reduction Act-funded projects, attracting more than $27 billion in investment and creating more than 26,000 jobs.
Allan O'Shea, founder and CEO of 50-year-old CBS Solar in Copemish, said about 90% of his family-owned business is residential rooftop solar.
"That 90% would lose one of the benefits that go with solar and that's a 30% tax credit," O'Shea pointed out. "The other 10% of our business is commercial and it would survive but the damage would be done. We're talking 25+ employees here."
O'Shea sent a heartfelt letter to most senators, expressing concerns about the bill's effects on his livelihood and others'. Supporters of the big tax-cut and spending bill argued it would boost the economy and strengthen national security.
Backers also said the bill delivers the biggest tax cut in U.S. history for those earning $30,000 to $80,000 a year, with 15% off their taxes. O'Shea emphasized he and his customers are money-smart and value long-term investments, adding the issue is not the goal, but how the bill is being pushed through.
"I just hope for the saner minds, the senators and the Congress people that we have in Michigan, to step up and slow the pace down," O'Shea urged. "You can sunset it."
In 2023, solar power jumped 51% nationwide, with solar making up more than half of all the new electricity added to the grid.
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A new analysis of what Congressional lawmakers have dubbed the One Big Beautiful Bill Act found it would eliminate thousands of jobs in South Dakota and slow economic growth.
The bill's current language repeals multiple federal policies, funding programs and tax credits meant to boost American clean energy and manufacturing.
Daniel O'Brien, senior modeling analyst for the nonpartisan think tank Energy Innovation, said South Dakota could lose as many as 1,600 jobs by 2030 as funding is diverted to jobs in the coal, oil and gas industries.
"Those are but a fraction of the number of jobs that are being lost in manufacturing, construction, utilities, farming and agriculture," O'Brien explained.
O'Brien noted up to 840,000 jobs nationwide could be eliminated over the next five years if the current bill remains intact. It repeals more than $500 billion in Inflation Reduction Act investments, which some House Republicans have dubbed a "green new scam."
South Dakota households currently benefit from low energy prices, partly due to the growth of renewable energy. The industry has drawn more manufacturing to the state, along with data centers in need of large amounts of cheap power. But the analysis showed a shift toward fossil fuels will increase annual statewide energy bills by more than $180 million by 2035.
O'Brien stressed industries looking to reduce costs may choose to operate elsewhere.
"When you repeal these tax credits, you lose the incentivization of companies to build out cheap renewables in South Dakota," O'Brien pointed out. "For that reason, companies that are relying on their cheap power might go to other states or they might move outside of the U.S."
He added gas prices are also expected to rise with the repeal of EPA rules on vehicle tailpipe emissions and fuel economy standards. Zero-emission vehicle sales in South Dakota are expected to fall from more than 50% in 2030 to around 30% over the next five years.
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