Tesla has released a new statement on Thursday, opposing the removal of energy tax credits proposed in Donald Trump’s new bill.
The tax breaks — introduced by the Biden Administration in 2022 to stimulate energy-efficient homes and the adoption of EVs — would be brought to an end on December 31.
The company stated on X that “abruptly ending the energy tax credits would threaten America’s energy independence and the reliability of our grid.”
Tesla, which produces electric vehicles, solar technologies and battery storage systems, urges the Senate “to enact legislation with a sensible wind down of 25D and 48e.”
The highlighted sections give homeowners a 30% tax credit for solar installations and companies a 30% credit for clean energy projects.
The company added the move would “ensure continued speedy deployment of over 60 GW capacity per year to support AI and domestic manufacturing growth.”
X User Gailalfaratx replied to Tesla‘s post questioning, “Are Oil/fossil fuel credits ending? It appears they are not.”
She added that “slashing solar energy credits is unjust” and that “what’s more unjust is the damage that is done to people’s lives during storms and blackouts, because ultimately you can’t replace a human life.”
Spain and Portugal suffered a major energy outage late last month that lasted for several hours. On X, Tesla wrote on May 9 that its Powerwall was able to provide over 6,000 hours of collective backup power.
Tesla‘s CEO Elon Musk quoted Gailalfaratx‘s post stating, “There is no change to tax incentives for oil & gas, just EV/solar.”
Back in January, Donald Trump signed a series of executive orders to promote fossil fuels and cut government support for renewable energy.
“We’re going to drill, baby, drill and do all of the things that we wanted to. We aren’t going to do the wind thing,” Trump stated then, promising that he would end the benefits introduced by Biden’s Inflaction Reduction Act (IRA).
Signed into law in August 2022, the IRA aimed to reduce government spending, lower prescription drug costs, and combat climate change. It included tax breaks for consumers choosing clean energy, which would be available at least until 2032.
For EV adoption, eligible consumers were offered up to $7,500 on a new electric vehicle and up to $4,000 on a used one, including leasing.
Last week, Trump’s “big, beautiful bill” entered Congress, and was passed by the Republican majority in the House (215 votes in favor and 214 against), moving to the Senate.
Following the approval of the bill, the President wrote on Truth Social that “this is arguably the most significant piece of Legislation that will ever be signed in the History of our Country.”
According to Reuters, the American Petroleum Institute praised the bill for “preserving competitive tax policies.” The bill expands oil lease sales and removes fees on methane emissions from the oil and gas industry.
The U.S. has offered tax credits for electric vehicle buyers since 2008, when President George W. Bush introduced a $3,400 credit for the first 60,000 vehicles sold by each manufacturer.
The credit was then raised to $7,500, for the first 200,000 vehicles, by Barack Obama. Only Tesla and GM registered sales over those figures annually.
