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President-elect Donald Trump has proposed eliminating the federal electric vehicle tax credit established by the Inflation Reduction Act, which could save taxpayers an estimated $2.5bn over the next decade. Demand for the Massachusetts MOR-EV program, which offers rebates for electric and fuel cell vehicles, surged in 2023, with 9,265 rebates valued at over $33.6m, a 350% increase from the previous year. However, the program may run out of funding by next June. The agency overseeing it noted that legislative action is required “if the program is to continue.” Critics argue that the program primarily benefits affluent consumers, with Paul Craney from the Massachusetts Fiscal Alliance stating: “Electric vehicles are widely considered a luxury item”. Massachusetts aims for 300,000 electric vehicles by 2025, but only 75,000 were registered as of July.
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