The plan, which is still pending in the House, would eliminate many tax incentives for clean energy programs after this year.

A House Republican bill introduced this week would do away with tax credits that had encouraged Americans to buy electric vehicles and automakers to invest in new factories.

In the U.S., electric car sales grew by about 10% year-on-year in 2024, reaching more than 1 in 10 cars sold, according to the report. Europe Union countries saw sales stagnate as subsidy programs and other supportive policies waned, though the market share of electric cars remained around 20%.

Republican plans call for axing consumer tax credits for home upgrades, EVs and rooftop solar, while sunsetting incentives that have brought billions in manufacturing investment to Michigan.

The bill would boost the tax break to as much as $2,500 but end it for children of undocumented immigrants and married parents who file separate returns.