Latino Jobs at Risk Under Trump Proposal to End EV Tax Credits

Opinion for The Latino Newsletter

David Medina Álvarez, a 25-year-old Mexican immigrant residing in Detroit, Michigan, had a thought: if there are electric cars, why not make electric ATVs? However, he faced a significant hurdle in turning his idea into reality—funding. The solution was through new Biden administration investments to support young entrepreneurs like himself aiming to contribute to the clean energy sector. 

Thanks to a $200,000 government grant, David is working on hiring new talent and expanding his company, LIVAQ. There are thousands of aspiring entrepreneurs like David seeking to start a business and contribute to their local economies, as well as tens of thousands of workers looking for jobs. Over the past four years, the Biden administration’s clean energy investments have filled a necessary gap to meet both these needs. Unfortunately, job losses and missed funding opportunities are imminent if the incoming Trump administration makes good on its pledge to end all electric vehicle (EV) tax credits and investments.

EV sales have more than quadrupled in the last four years. This remarkable growth in EV manufacturing has been largely driven by government incentives such as tax credits, which have spurred private investments and increased national demand. However, eliminating these tax credits will substantially threaten the rapidly expanding clean energy sector and jobs it’s created for working-class people, including Latinos. 

Saving American consumers over $1 billion this year, these tax credits have sustained thousands of manufacturing jobs while making electric vehicles more affordable and driving demand for clean energy technologies. Trump’s plan to eliminate these incentives could threaten jobs in communities across the country.

While Latinos make up 19% of the overall U.S. labor market, they represent an even larger share of the clean energy industry, comprising 21% of solar jobs and 22% of wind. This overrepresentation highlights the critical role that clean energy plays in providing employment opportunities for Latino communities. The current plan has spurred over 330,000 jobs across the country. Of the 646 new clean energy projects, 290 are in low-income communities, bringing $114 billion in investment and creating 134,385 jobs, demonstrating the sector's potential for economic revitalization.

The clean energy sector has been a significant driver of job creation, particularly for Latino workers. In 2023 alone, nearly one-third of the new energy jobs were held by Latinos, with the workforce growing by 79,000 individuals. Within that growth, clean energy jobs are growing at more than twice the rate of the overall economy, underscoring the sector's importance in providing stable, well-paying jobs to communities historically facing economic challenges.

If the Trump administration squashes these incentives, it risks stalling the sector’s growth, which could lead to job losses and reduced investment in communities that need it the most. For Latino workers, the stakes are particularly high. Clean energy has provided a pathway to economic stability and upward mobility for many Latino families. Jobs in this field often come with competitive wages and benefits, helping to lift workers out of poverty and into the middle class. Clean energy jobs also have higher unionization rates than the overall U.S. workforce. Any loss will devastate Latino communities, exacerbating existing economic disparities and limiting opportunities.

In addition, the sector has been instrumental in addressing climate change, an issue that disproportionately affects low-income and minority communities. Dismantling these efforts is a step backward.

Eliminating EV tax credits directly threatens all this. Support for clean energy investments is strong within the Latino community, and for good reason. We must continue to back policies that promote clean energy and safeguard the jobs critical to our nation's economic future. By maintaining these policies, we can ensure that all Americans, irrespective of their background, have the chance to thrive. 

About the Author

Antonieta Cádiz is the deputy executive director of Climate Power En Acción, a Climate Power project focused on reaching and mobilizing Latinos for climate action.

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The Latino Newsletter welcomes opinion pieces in English and/or Spanish from community voices. You can email our publisher, Julio Ricardo Varela. The views expressed by outside opinion contributors do not necessarily reflect the editorial views of this outlet.