#47: EV tax credits at risk

Congress targets EV incentives, LG exits charging business, the Joint Office shuts down, and Electric Era launches AI-powered retail charging

Author

Steve Taylor
May 10, 2025

The Business and Policy of Charging Infrastructure

The 3 big stories:

  • Congress targets EV incentives

  • LG exits charging business after just three years

  • The Joint Office of Energy and Transportation silently dissolves 

  • Electric Era launches Retailer AI

Plus, featured jobs and news.

Enjoy,

–Steve

Policy Briefing Recap: The Future of EV Charging in the Multi-family Market

This week, EVPowerInsights hosted a policy briefing on how budget reconciliation will reshape charging infrastructure. David Bridges and Robert Diamond from Capitol Counsel offered their perspective and insights.

Here were the key takeaways;

  • House Republicans may cut EV credits (30D, 45W, and 30C) to raise revenue

  • Some House Republicans want full IRA repeal, others defend credits tied to local jobs

  • The bill is being written right now, so industry voices must move fast

  • Expect changes by July 4

Here’s the recording. To learn more about budget reconciliation and its impact on charging infrastructure, contact David and Rob here.

The Big Story

After a week of closed door meetings, congressional negotiations over the budget reconciliation package are intensifying through this weekend, with significant focus on the future of clean energy tax credits, including those for electric vehicles. The outcome of these discussions will have substantial implications for the Inflation Reduction Act (IRA) and the broader U.S. clean energy sector.

The Republican Party is divided over the fate of IRA energy tax credits. While some members, aligned with President Trump's agenda, advocate for repealing these credits to fund extensions of the 2017 tax cuts and other priorities, others, particularly from states benefiting from clean energy investments, support preserving them. 

EV tax credits are particularly vulnerable in the current negotiations. Some Republicans view these credits as consumer subsidies and are considering their elimination to reallocate funds. When asked about the EV tax credit this past Tuesday, House Speaker Mike Johnson (R-LA) said in an interview with Bloomberg “I think there is a better chance we kill it than save it, but we’ll see how it comes out.”

Rob’s Take

The House Ways and Means Committee is expected to begin marking up the reconciliation bill this coming Tuesday, May 13, 2025.  It is not clear, however, when a formal announcement on this markup will be made yet or when draft legislative text will be released due to the significant internal divisions within the Republican Party that continue behind closed doors. 

As recently as Thursday, a group of 12 House Republicans again sent a letter to the Chairman of the House Ways and Means Committee voicing their support for the IRA energy tax credits.  They re-emphasized the importance of the investment tax credit (ITC) and production tax credit (PTC) for projects in their districts.  This contrasts with the May 1 letter sent to Chairman Smith from 38 House Republicans calling for the “urgent need to fully repeal the IRA” and ending the “green new scam.”

Republicans in Congress have a goal to finalize the tax bill by Memorial Day. The next week will be make or break for that timeline to succeed. The internal divisions within the Republican Party and advocacy from industry stakeholders suggest that negotiations will continue to be complex.While a complete repeal of the IRA's clean energy provisions appears unlikely, targeted cuts, especially to EV tax credits, remain a significant possibility.  One thing I know for certain, you need to call your member of Congress NOW and voice your opinion.

–Rob

Business Brief

LG Electronics has announced its exit from the EV charging sector, ending a short-lived three-year effort that began with its 2022 acquisition of South Korean startup HiEV Charger (formerly AppleMango).

The company announced plans to dissolve HiEV Charger, with staff being reassigned across the broader LG Group. Despite the wind-down, LG says it will continue to provide after-sales support for existing customers.

The move comes just 15 months after LG opened an EV charger manufacturing facility in Texas and less than a year after a strategic partnership with ChargePoint was announced in June 2024.

In a statement posted on its website, LG said it would shift focus to “other solutions that will provide new experiences and value to our customers,” citing slower-than-expected EV adoption in key markets as the driver behind its decision.

Steve's Take

LG’s abrupt exit from the EV charging market is a surprising turn that highlights broader uncertainty about the pace of EV adoption, specifically in the U.S., where policy support has grown increasingly volatile.

For a diversified conglomerate like LG, the long path to profitability in EV charging likely conflicted with the pressure of delivering near-term results.

While this move poses short-term issues for partners like ChargePoint, it could ultimately benefit those companies that stay the course through demand swings.

I expect we’ll see more exits and consolidation from companies unable to weather the uncertainty or justify the long investment horizon.

–Steve

Power and Policy

Over the past two years, we have frequently written about the Joint Office of Energy and Transportation, an entity created by the bipartisan Infrastructure Investment and Jobs Act to align energy and transportation efforts in building a national EV charging network.

Launched in 2021, the Joint Office brought together specialists from across federal agencies to tackle complex infrastructure challenges. But since President Trump has taken office, the size of the office has steadily declined.

While some efforts may continue through contractors embedded within individual departments, the cross-agency collaboration Congress envisioned appears to have quietly unraveled.

Rob's Take:

The quiet dismantling of the Joint Office reflects the current state of federal EV charging support and the Trump Administration’s shifting priorities.

What’s surprising is how it happened. The Joint Office didn’t disappear through executive order, but rather administrative attrition.

The industry, along with state and local agencies, has already begun adapting to the vacuum left by the Joint Office. Still, the absence of a central coordinating body presents serious challenges for technical standardization and long-term reliability, which are essential to the health of the broader ecosystem.

Just as concerning is the loss of institutional knowledge. The Joint Office functioned as a vital repository of insights from charging deployments across all 50 states. Without a federal entity to gather and share those lessons, that wisdom is now fragmented at a time when it is needed most.

–Rob

Emerging Tech

Electric Era has introduced Retailer AI, a new platform that combines artificial intelligence and voice technology to elevate the EV charging experience into a personalized, service-driven interaction.

Designed as a digital concierge, the system identifies vehicles, checks battery levels, and connects drivers with nearby amenities turning idle charging time into a tailored retail opportunity.

Core features include voice-guided engagement, on-screen ordering, and seamless integration with retailer loyalty programs to deliver targeted discounts and promotions.

“As more retailers move into the EV charging space, they’re becoming hyper-focused on making those moments brand-aligned and intentional,” said Quincy Edmund Lee, founder and CEO of Electric Era.

The company will pilot Retailer AI at select sites in late 2025, with a focus on convenience stores, grocery chains, and quick-service restaurants.

Electric Era’s battery-backed platform has already demonstrated strong performance cutting installation time by 50%, retrofit time by 75%, and maintaining 90% session reliability with 99% port uptime.

Steve's Take:

Electric Era’s Retailer AI addresses a simple but often overlooked question: what do drivers do during the 20-30 minutes it takes to charge?

For retailers, that downtime is now a low-friction sales channel. Instead of relying on foot traffic, they can engage customers directly through the charging screen offering food, beverages, and promotions without requiring drivers to leave their vehicle.

Many retailers have been cautious about investing in EV charging due to unclear ROI. By unlocking revenue beyond electricity sales, Electric Era strengthens the business case and aligns charging with core retail goals.

–Steve 

Featured Jobs

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⚡️Steve and Rob

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