Subsidies for electric vehicles and renewables are coming to an end. Can these industries survive without incentives? The tax credit of up to $7,500 was intended to encourage the public to buy EV’s. It was not intended to last forever. But how long should tax credits continue? Have they served their purpose? Has the goal been realized?

Tesla has already reached the cap of 200,000 qualifying vehicles for the tax credit. Several auto-manufacturers, including Tesla and General Motors have lobbied for months to extend subsidies. Senator Dean Heller proposed lifting the current cap on electric vehicles eligible for tax credits but phase out the credit for the entire industry in 2022. Two other senators proposed lifting the per manufacturer credit and extending the benefit for 10 years. Senator John Barrasso proposed legislation to end the EV tax credit entirely. White House economic adviser Larry Kudlow stated, “As a matter of our policy, we want to end all of those subsidies…” In the past, solar tax credits were extended and the results have been positive. In that time, solar installations went up and prices went down. The federal Investment Tax Credit extension gave customers time to maximize returns. However, if further extensions are not granted, how will these industries continue to be profitable? How should they prepare for the end of subsidies?