The Road Ahead for Electric Vehicles and Infrastructure in the U.S.

With a new presidential administration coming to the White House next year in addition to a new Congress, many are questioning the future of the electric vehicle market. While there are no definitive answers just yet, we can speculate how a second Trump administration might speed up or slow down the expansion of electrification from EVs to infrastructure in the United States.

First, the reality – electrification is not going away. The momentum and the investment from the market is already there at both the macro and micro level, with many manufacturers and communities having invested deeply into electric development and research. While some pieces regarding infrastructure development and regulation may slow in the next four years, we do not predict that it will come to a halt.

Much of the Trump administration’s policy regarding alternative fuel incentives and regulations will come from his nominees for the Department of Energy, Department of Transportation and Environmental Protection Agency – Chris Wright, Sean Duffy and Lee Zeldin, respectively. These department heads will have the authority to roll back initiatives from the Biden administration geared toward EVs. For businesses wondering how to move forward with their alternative fuel and electrification goals and plans, there are a few key questions to ask as we head into 2025 and a new administration. 

Is the tax incentive my only incentive?

It’s been widely reported that President-elect Trump intends to repeal the $7,500 consumer tax credit for purchasing EVs that the Biden administration established in the Inflation Reduction Act (IRA). This likely means that the Trump administration would repeal all clean vehicle tax credits from the IRA, including those of up to $40,000 for businesses and tax-exempt organizations that purchase qualified green vehicles.

For business owners looking to purchase an EV fleet, the uncertain fate of the tax credits might be cause for concern. But before making any decisions, it will be important to consider whether the tax incentive is your business’ only incentive to build an EV fleet. Your sustainability or emissions reduction goals might outweigh the cost even without the added tax benefit.

Do I need to wait for infrastructure growth before I invest?

Through the Infrastructure Investment and Jobs Act (IIJA), the Biden administration secured $5 billion in funding for the National Electric Vehicle Infrastructure (NEVI) program and $2.5 billion for the Charging and Fueling Infrastructure program. The programs provide grants to states and communities with the goal of creating a nationwide network of EV charging stations and making charging stations publicly accessible in communities. On the campaign trail, President-elect Trump promised to use the unspent funds from the IIJA for different infrastructure projects unrelated to EVs.

While it’s unknown if the new administration will be successful in reallocating the funding, EV infrastructure growth is likely to slow over the next four years. The question for businesses will be whether they have the capital to overcome the speed bumps and continue to invest in EV infrastructure. It might make sense to adapt in the short term, but in the long term EVs should remain a target.

Is my state prioritizing EVs on its own?

Although things might change at the federal level, many states will continue to move ahead on their plans to advance infrastructures for alternative fuel. The rollback at the federal level might provide incentive for more states to take electrification initiatives into their own hands and rely less on the federal government.

Businesses can have a voice in the matter by choosing to lobby Congress at the state level to encourage legislatures to keep the momentum going on EVs and the necessary infrastructure planning. Getting a seat at the table now among state and federal lawmakers and influencers who will shape the future of electric infrastructure policy will prove valuable for companies, municipalities, and development authorities.

Stay the Course

Businesses looking to invest in EV infrastructure or fleets should not be discouraged. Right now, it’s important to understand your limitations in terms of capital and scale, and to review incentives or initiatives that will remain available at the state level. 

Our government relations team can help your business have a seat at the table with complex policy advocacy, support key relationship-building, and strategic planning that supports your short and long-term business goals in electrification.