YOUNGSTOWN - As top U.S. administration changes are on the horizon, one of the first items said to be on the agenda for some newly elected officials is eliminating the electric vehicle tax credit. 

When someone buys a new electric vehicle from a dealership they may be eligible for $7,500 off the price. It was an incentive put in place in 2023 to try and boost sales for the clean energy sector.

But now, Ohio U.S. Senator-elect Bernie Moreno and President-elect Donald Trump have indicated they’re in favor of getting rid of it.

“Without these policies … we will not be able to chose we will have to buy a gas car,” Gil Tal, Director of the Electric Vehicle Research Center at UC Davis said. 

“Anytime anybody gets a deal worth 7,500 dollars they’re likely to take advantage of it,” John McElroy with AutoLine said. “You take that away and people will start to look elsewhere as to what to buy.”

If fewer people are buying an EV, manufacturers would have to make tough decisions.

“Battery plants will be put on hold, maybe closed down or certainly scaled back and same goes for any of the other componentry that goes into EVs,” McElroy said. 

McElroy explained the reason behind the idea to get rid of the credits is that the Trump administration believes the industry should be able to survive on its own without needing taxpayer subsidies. 

“Unfortunately, electric cars have become highly politicized … the problem for the auto industry of course is that it’s put ten of billions of dollars into making these cars and if all of the sudden the sales dry up it's going to hurt them financially,” McElroy said.

Tal said the credit was always meant to be eliminated at some point - but he believes it needs to stick around until at least 2030. 

“It's a little bit too early, we're still building the capacity. We still need a big transition and people need to know they're doing the right decision,” Tal said. “Right now this entire transition is the hardest one for individuals and for governments. It's a big upfront investment in order to save in the long run.”

On top of the rumors of eliminating the EV tax credit, the Trump administration's tariff plan could also be a blow to electric and gas vehicles. 

“If it's a tariff on parts coming out of Mexico that's a problem for all car companies … all of that is just going to raise the cost of vehicles because it’s very difficult to just turn around and find a domestic source for them,” David Welch, a writer with Bloomberg News said. 

It's unclear if these policies will actually be put in place - but if they are - it could send a ripple effect into the already slow EV industry for the United States.