What the federal spending bill means for Michigan climate, EVs

• A US Senate-passed budget reconciliation bill would cancel tax credits for EV purchases and renewable energy developments years ahead of schedule
• Experts said that could slow Michigan’s energy transition and cause automakers to rethink investments in new EV plants and assembly lines 
• The US House of Representatives is expected to vote on the bill as soon as this week

The budget reconciliation bill that passed the US Senate Tuesday and awaits a House vote would eliminate a host of federal incentives for clean energy and electric vehicle production, with significant implications for Michigan’s auto industry and energy transition.

Experts who analyzed the proposal told Bridge Michigan that if it passes the House as written, Michigan utilities will likely slow their investments in renewable energy and prolong their reliance on planet-warming fossil fuels, while automakers may again extend EV production timelines and their multibillion-dollar investments in new Michigan battery plants and assembly lines.

But so far, utilities and automakers aren’t saying much about how the bill’s proposed cuts would impact specific Michigan projects or their long-range plans. 

Here’s what to know:

What the bill says on climate, EVs

In general, the budget bill would cut taxes, with the biggest benefits accruing to the wealthy, while the federal government would spend less on Medicaid, nutrition programs, education and clean energy and more on immigration enforcement and the military. 

President Donald Trump has urged Congressional Republicans to pass the legislation, taking to social media on Tuesday to claim that if they do, the country will “explode with Massive growth” and the federal deficit will shrink.