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White House seeks to end subsidies for electric cars and renewable energy

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White House economic adviser Larry Kudlow said on Monday the Trump administration wants to end subsidies for electric cars and other items, including renewable energy sources.

Asked about plans after General Motors Co (GM.N) announced U.S. plant closings and layoffs last week, Kudlow pointed to the $2,500-to-$7,500 tax credit for consumers who buy plug-in electric vehicles, including those made by GM, under federal law.

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“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.”

Asked about a timeline, he said: “It’s just all going to end in the near future. I don’t know whether it will end in 2020 or 2021.”

The tax credits are capped by Congress at 200,000 vehicles per manufacturer, after which the subsidy phases out. GM has said it expects to hit the threshold by the end of 2018, which means under the current law, its tax credit scheme would end in 2020. Tesla Inc (TSLA.O) said in July it had hit the threshold. Other automakers may not hit the cap for several years.

Experts say the White House cannot change the cap unilaterally. U.S. President Donald Trump last week threatened to eliminate subsidies for GM in retaliation for the company’s decision.

Kudlow made clear any changes in subsidies would not just affect GM. “I think legally you just can’t,” he said.

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Democrats will take control of the U.S. House in January and are unlikely to agree to end subsidies for electric cars and many have been pushing for additional incentives.

Tesla and GM have lobbied Congress for months to lift the cap on electric vehicles or make other changes, but face an uphill battle make changes before the current Congress expires.

In October, 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 in September proposed lifting the per manufacturer credit and extending the benefit for 10 years.

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Also in October, Senator John Barrasso a Republican who chairs the Senate Environment and Public Works Committee, proposed legislation to end the EV tax credit entirely.

Reporting by Jeff Mason and David Shepardson; writing by Doina Chiacu; editing by Sonya Hepinstall and Lisa Shumaker

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New Zealand may postpone general election after 4 test positive for COVID-19: PM Jacinda Ardern

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New Zealand locked down nursing homes nationwide Wednesday after a 102-day streak without the coronavirus ended, as Prime Minister Jacinda Ardern said the outbreak could force her to postpone next month's general election.

Ardern said authorities were scrambling to trace anyone who had been in contact with four Auckland residents who tested positive Tuesday, ending the dream run in which the virus had been contained at New Zealand's borders.

A three-day stay-at-home order for Auckland, New Zealand's biggest city with a population of 1.5 million, was announced on Tuesday night and went into force at lunchtime on Wednesday.

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2020 Election

Android phones to get ‘ShakeAlert’ earthquake warnings — and phones may double as tremor detectors

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Android phones will receive warnings triggered by a "ShakeAlert" earthquake early-warning system implemented on the West Coast by the US Geological Survey and partners.

ShakeAlert uses signals from hundreds of seismometers across the state to trigger warning messages that "an earthquake has begun and shaking is imminent," according to the system's website.

"We saw an opportunity to use Android to provide people with timely, helpful earthquake information when they search, as well as a few seconds warning to get themselves and their loved ones to safety if needed," principal software engineer Marc Stogaitis said in a blog post.

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2020 Election

‘Don’t talk about racism, racist’: Trump scorched after claiming Biden-Harris campaign has a ‘racism problem’

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President Donald Trump continued to lash out at Kamala Harris after the California Democrat was chosen to join the 2020 Democratic Party ticket as presumptive nominee Joe Biden's running mate.

At a news conference following the selection, Trump complained about Harris being "nasty."

After 10 p.m. on Monday, Trump tweeted out an attack ad claiming "Joe Biden has a racism problem."

Here's some of what people were saying about Trump's line of attack:

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