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Are billions in federal EV incentives for Panasonic plant in limbo?

Panasonic EV battery facility
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KANSAS CITY, Mo. — KSHB 41 has been covering the impact of Panasonic's electric vehicle battery facility slated to open in April.

For several weeks, KSHB 41 reporter Alyssa Jackson has been breaking down where billions of dollars are being committed from all levels of government on the project.

However, federal funding signed into law under President Joe Biden's administration could be in limbo.

The Inflation Reduction Act was passed in 2022.

Its focus included clean energy, technology, climate-related projects, and manufacturing.

The Advanced Manufacturing Production Credit, the "45X credit," in the legislation received support along party lines.

Panasonic EV battery facility

It includes incentives that provide electric vehicle factories with $1 billion each year to encourage production.

For Panasonic, the funding could end up totaling $6.8 billion, but there's uncertainty on whether that funding will be repealed under President Donald Trump.

In the past month, President Trump said he intends to save money for taxpayers and the government.

Attempts by the president to freeze funding include certain provisions of the Inflation Reduction Act that have some funding for electric vehicles.

Trump signed an executive order, "Unleashing American Energy" on his first day in office.

The order mentions eliminating the electric vehicle (EV) mandate and considering the elimination of "unfair subsidies and other government-imposed market distortions that favor EVs over other technologies".

What could this mean for Panasonic?

It's unclear whether the advanced manufacturing credit will be affected.

KSHB 41 reached out to the Kansas congressional delegation.

Democrat U.S. Rep. Sharice Davids was the only member of the Kansas delegation to vote in favor of the Inflation Reduction Act.

Davids was the only member of the delegation to respond to our inquiry about the advanced manufacturing credit.

"What is unacceptable is uncertainty when budgets have already been created," she said. "When something is in federal law, when something like the Inflation Reduction Act gets passed, those obligations that the federal government makes should not ever be uncertain for anyone."

Kansas Governor Laura Kelly had a one-on-one discussion with KSHB 41's Alyssa Jackson last month.

She mentioned the uncertainty and how they will have to wait and see if any directives from President Trump impact the Panasonic plant.

"Federal funding is incredibly important," Kelly said. "Just like our local communities can’t deal without a partnership with the state. There are some things we can’t do if we don't have the support of the federal government."

Discussions about repealing the tax credit came up on the campaign trail

Repealing the Inflation Reduction Act was a campaign trail focus for President Trump.

There have been previous U.S. House attempts to repeal provisions of the legislation.

Last August, 18 House Republicans sent a letter to House Speaker Mike Johnson advocating for the tax credits to remain.

There are legal hurdles to repealing any parts of the bill. The Trump Administration can't unilaterally stop clean energy tax credits or funding mandated by Congress.

Judges have already stopped attempts from the Trump Administration to freeze federal funding.

Panasonic sent KSHB 41 a statement in response to funding questions:

"Panasonic has made a long-term commitment to investing in and advancing the electric vehicle battery industry in the United States, and we have grown to be the North American market leader in EV lithium-ion batteries. While our commitment began before the passage of the IRA, manufacturing tax credits that encourage the EV supply chain investment is making the United States an even better place to build the newest EV battery technology and accelerate the expansion of more transportation options for Americans."

KSHB 41 reporter Alyssa Jackson covers portions of Johnson County, including Overland Park, Prairie Village and Leawood. Share your story idea with Alyssa.