KSHB 41 reporter Elyse Schoenig covers the cities of Shawnee and Mission. She also focuses on issues surrounding the cost of health care, saving for retirement and personal debt. Share your story idea with Elyse.
President Trump's budget bill will end tax credits on electric vehicles later this year. This could impact both consumers and manufacturers in the Kansas City area as De Soto's Panasonic plant gets ready to celebrate its grand opening this July.
The $7,500 tax break for new electric vehicles and $4,000 tax break for used ones will end in September, raising questions about whether higher prices will drive customers away from EVs.
"It's an attempt to stimulate an industry," said economist Chris Kuehl.
Kuehl said these credits were designed to incentivize consumers by reducing the sticker shock associated with electric vehicles.
"There's an awful lot of conversation about, how do you keep interest in the EV when some of the breaks are taken away?" Kuehl said.
In De Soto, the Panasonic plant is set to begin its electric vehicle battery production this month. It's unclear if ending the tax breaks will impact the industry's manufacturing. A Panasonic spokesperson said hiring plans for the plant have not changed.
Kuehl said he'll be watching to see if Panasonic adjusts to the changing demand as the tax credit deadline approaches.
"It's not necessarily prohibiting, but it's certainly going to inhibit the demand for the vehicle at least short term," Kuehl said.
For new EV owners like Olivia, who purchased her first Tesla just over a week ago, the benefits go beyond tax credits.
"I don't have to pay high prices for gas, I can choose, I can plug in at my house and I can use my own electricity instead of having to pay the dictated prices of gas with what goes on in the economy," Olivia said.
After months of research into electric vehicles and available incentives, Olivia said she's still happy with her purchase.
"I'm so excited. It's going to be an awesome first car already and I've had no buyer's remorse," Olivia said.
This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
