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“Unleashing American Energy Executive Order” & Rescinding EO 14037 Strengthening American Leadership in Clean Cars and Trucks

On January 20, 2025, President Trump issued an Executive Order (EO) titled, Unleashing American Energy. This executive order undoes support for electric vehicle manufacturing jobs and other investments in clean car and truck technologies. President Trump’s stated intentions to reverse the Inflation Reduction Act (IRA) and related policies would strand $145 billion in new investments and cost more than 35,000 job-years (a measure that calculates one person’s work over one year) in truck assembly and parts manufacturing work. This will put U.S. producers at a competitive disadvantage, disincentivize research and development of new vehicle technologies, and encourage offshoring manufacturing of both internal combustion engine and low- and no-emission vehicles and parts. In addition, pausing the tax credits and investments listed above will make it more expensive for U.S. consumers and businesses to purchase and maintain electric vehicles. Fully revoking the provisions of the IRA would require further action.

Among other measures, the “Unleashing American Energy” EO directs all agencies to immediately “pause the disbursement of funds appropriated through the Inflation Reduction Act of 2022 (Public Law 117-169) or the Infrastructure Investment and Jobs Act (Public Law 117-58)…until the Director of OMB and Assistant to the President for Economic Policy have determined that such disbursements are consistent with any review recommendations they have chosen to adopt.” This includes:

  • Used Clean Vehicle Credits (IRA Section 25E) providing consumers up to $4,000 for the purchase of qualifying used clean vehicles
  • Alternative Fuel Vehicle Refueling Property Credits (IRA Section 30C) for businesses and homeowners installing vehicle charging infrastructure
  • New Clean Vehicle Credits (IRA Section 30D) providing up to $7,500 for consumers for purchase of qualifying clean vehicles
  • Commercial Clean Vehicle Credits (IRA Section 45W) providing up to $40,000 for businesses purchasing qualifying clean vehicles
  • Advanced Manufacturing Production Credits (IRA Section 45X) supporting U.S. investment and manufacturing of advanced storage batteries and components.
  • Qualifying Advanced Energy Project Credits (IRA Section 48C) providing $10 billion for investments in advanced energy projects that meet prevailing wage and registered apprenticeship standards, which supported more than 240 projects in 35 states
  • Advanced Technology Vehicles Manufacturing Loans supporting investment, technological development, and manufacturing of light-duty and heavy-duty motor vehicles, trains, maritime vessels, and aircraft

 

The EO also rescinds a previously standing order 14037 titled, Strengthening American Leadership in Clean Cars and Trucks that established a goal for 50% of new car and truck sales to be clean vehicles by 2030.