Missouri has more than 13,000 all-electric vehicles registered, according to recent U.S. Department of Energy figures. However, threats to federal incentives and tax credits for EVs may derail the momentum.
As part of President Donald Trump's goal to restructure the country's budget, U.S. House Speaker Mike Johnson has proposed removing a $7,500 tax credit for EV owners, and a $4,000 credit for buying a used EV by the end of this year.
John Higham, a member of the Electric Vehicle Association's board of directors, said he wonders if this will cause potential buyers to back away.
"It's not going to kill the electric vehicle," he said. "It might slow the acceleration of the adoption of the electric vehicle, but it's certainly not going to reverse the trend."
Higham said he expects a 10% to 12% growth rate for EV purchases, but admits that number could drop to between 8% and 9% if the tax credits disappear. The federal budget proposal could pass between the end of May and the end of July.
The U.S. House has proposed legislation that would extend the tax credits until the end of 2025. And analysts say the largest EV automaker -- Tesla, led by Elon Musk -- would be among those most affected if the tax credits end.
Higham said repealing these tax credits could split opinions along party lines.
"That economic engine that is in those 'red' districts -- where there's new battery manufacturing put in, new automotive manufacturing put in -- those are the voters that are going to feel it the most," he said. "It is harder to repeal than I think most people realize."
In 2024, it's estimated that the federal government spent about $2 billion in advance point-of-sale touting the EV tax credit payments. Buzz about possibly ending the credits may push some drivers to buy EVs sooner rather than later.
The Missouri Public News Service is a partner with KRCU Public Radio.
