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White House calls for end of electric vehicle subsidies

National Economic Council Director Larry Kudlow on Monday said the White House wants to put an end to subsidies for electric cars and renewable energy sources.

Under federal law, consumers who purchase plug-in electric vehicles receive tax credits worth $2,500 to $7,500, and "as a matter of our policy, we want to end all of those subsidies," Kudlow said. "And by the way, other subsidies that were imposed during the Obama administration, we are ending, whether it's for renewables and so forth." The plan is to end the subsidies by 2020 or 2021, he added.

The subsidies already end after a manufacturer hits 200,000 vehicles. Last week, after General Motors announced it was closing several North American facilities, President Trump threatened to end electric car subsidies, but the company is already expected to reach the cap by the end of this year. GM and Tesla, which hit the threshold in July, have been calling on Congress to lift the cap, and once Democrats take control of the House in January, it's unlikely they will end the subsidies, as many have been calling for more incentives, Reuters reports.