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Dozens of people are reporting problems claiming the subsidy — and it’s not even Trump’s fault.

Eric Walker, of Zanesville, Ohio, bought a Ford F-150 Lightning in March of last year. Ironically, Walker designs and manufactures bearings for internal combustion engines for a living. But he drives 70 miles to and from his job, and he was thrilled not to have to pay for gas anymore. “I love it so much. I honestly don’t think I could ever go back to a non-EV,” he told me. “It’s just more fun, more punchy.”
But although he’s saving on gas, Walker recently learned he’d made a major, expensive mistake at the dealership when he bought the truck. The F-150 Lightning qualified for a federal tax credit of $7,500 in 2024. Walker was income-eligible and planned to claim it when he filed his taxes. But his dealership never reported the sale to the Internal Revenue Service, and at the time, Walker had no idea this was required. When he went to submit his tax return recently, it was rejected. Now, it may be too late.
Walker is not alone. Dozens of users on Reddit have been sharing near-identical stories as tax season has gotten underway — and it’s only early February. It is unclear exactly how many EV buyers are affected. What we do know is that it will be up to the Trump administration’s Treasury Department to decide whether any of them will get the refund they were counting on — the same administration that wants to kill the tax credit altogether.
The problem dates back to a change in the process for claiming the tax credit. For the 2023 tax year, dealers had until January 15, 2024 to report eligible EV sales to the IRS. For 2024, however, the IRS introduced a new, digital reporting system and new deadlines. Starting in January 2024, if a customer bought an eligible vehicle and wanted to claim the tax credit, dealerships were required to file a report within three days of the time of sale to the IRS through a web portal called Energy Credits Online.
This change coincided with another: Buyers now had the option to transfer the credit to their dealership instead of claiming it themselves. The dealer could then take the value of the credit off the price of the car and get reimbursed by the IRS. This was voluntary on the dealerships’ part, and many opted in. By October, more than 300,000 EV sales had used this transfer option, according to the Treasury Department. But apparently there were also many dealers who didn’t want to bother with it. And at least some of them never bothered to learn about the online portal at all.
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Charlie Gerk, an engineer living in the suburbs of Minneapolis, bought a Chrysler Pacifica plug-in electric hybrid in February after his wife had twins. Unlike Walker, Gerk knew all about the workings of the tax credit, and he wanted to get his discount up front. But the dealership he was working with — a smaller, family-run business — had not gotten set up to do it. “He’s like, ‘We sell six EVs a year, we’re not going to take the time to sign up for that program,’” Gerk recalled the salesman saying. Gerk decided to claim the tax credit himself, and the dealership even gave him a few hundred bucks off the car since he’d have to wait a year to see the refund. He then emailed the dealership instructions from the IRS for reporting the sale through the online portal, and the dealership assured him it would submit the information. It sent Gerk a copy of form 15400, an IRS “Clean Vehicle Seller Report,” for him to keep for his records — except that the form was dated 2023. When Gerk inquired about it, the finance manager told him it was just because it was still so early in the year, and that they would make sure it got filed appropriately online.
Fast forward to one year later, and Gerk came across a post in the Pacifica Reddit forum from someone whose claim was rejected by the IRS because their dealer failed to report the sale. “I logged into my online dashboard for the IRS, and sure enough, the vehicle’s not there,” Gerk told me. “If it was filed appropriately, it would have shown on my online dashboard that I had an EV clean vehicle credit for 2024, and it’s not there.”
Gerk spoke to his dealership, which said it would look into the situation. He forwarded me an email exchange between the IRS and his dealership in which a representative from the IRS’ Clean Vehicle Team said it was probably too late to fix. “The open period for any unsubmitted time of sale reports is closed,” the staffer wrote. “We are expecting some Energy Credit Online (ECO) updates so contact us via secure messaging in the Spring for additional information.”
Some users on Reddit who, like Gerk, were aware of the reporting requirements when they bought their EVs, have shared stories about visiting more than a dozen dealerships before finding one that was registered with ECO and willing to file the paperwork. Others who didn't know about the rules have recalled inquiring about the tax credit at their dealership and being told they could simply claim it on their taxes. They only found out when they tried to submit their tax paperwork on TurboTax or another e-filing system and received an error message informing them that their vehicle is not registered in the IRS database.
Some blame the dealerships for misleading them and are wondering if they have grounds to sue. Others blame the IRS for not adequately informing customers or dealers about the rules.
“My frustration lies with the fact the IRS would even allow this to be an option,” Gerk told me. “If you’re going to allow the credit to be taken by me, I have to be dependent on my dealer doing the right thing?” (Gerk asked that we not share the name of his dealership.)
I spoke with a former Treasury staffer who worked on the program, who told me that the agency went to great lengths to educate dealerships about the new online portal and filing requirements, including hosting webinars that reached more than 10,000 dealerships and a presentation at the National Automobile Dealership Association’s annual convention in Las Vegas. The agency put up pages of fact sheets, checklists, and other materials for dealers and consumers on the IRS website, they said. But the IRS doesn’t have a marketing budget, and also relied heavily on NADA, the Dealership Association, for help getting the word out.
NADA did not respond to multiple emails and phone calls asking for comment. I also contacted several of the dealerships who sold EVs to buyers who are now having their tax credit claims rejected, none of which got back to me.
Many of the affected buyers are trying to get their dealerships to contact the IRS and see if they can retroactively report the sales, as Gerk did. Some are having more luck than others. When Walker contacted his dealership in Cleveland, Ohio, to see if there was anything it could do to help him, it still seemed to have no idea what he was talking about. Walker forwarded me a response from his dealership asking him if he had spoken to his accountant. “My sales desk is pretty insistent on that this is something your accountant would handle,” it said. (Walker did not want to disclose the name of his dealership as he is still trying to work with them on a solution.)
I reached out to the Treasury Department with a list of questions, including whether this issue was on its radar and what consumers who find themselves in this situation should do. The agency confirmed receipt of the request, but had not gotten back to me by press time. We will update this story if they do. There are reports on Reddit of EV buyers having a similar issue claiming the tax credit in 2024 for purchases made in 2023. Some filed their taxes without the EV credit and then submitted appeals to the IRS after the fact, with seemingly some success.
Buyers stuck in this situation have few other places to turn. Some Reddit users have posted about reaching out to their representatives, who offered to contact the IRS on their behalf. One challenge, as noted by the former Treasury staffer I spoke with, is that unlike the dealers, who have NADA, there is no consumer advocacy group for electric vehicle buyers who can engage with lawmakers and the Treasury and request a solution.
“I don’t necessarily need the money,” Walker told me. “It was just gonna go towards some more student loans — I’m just trying to pay down all of my debt as soon as possible. So I didn’t need it. But it would have been certainly something nice to have.”
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My colleague Emily Pontecorvo has a fascinating story today about Net Power, an energy and power development company whose technology once seemed key to decarbonizing the country’s electricity grid.
When Net Power went public in 2023, it was working on a natural gas-burning power plant that would generate little to no emissions in part by using carbon capture and storage. Its invention seemed to have big implications, and not just for the company’s bottom line: Back then, the Environmental Protection Agency was drafting climate rules that would have required new natural gas plants built in the 2030s to capture their carbon dioxide emissions. Net Power’s technology seemed like one of the best available ways to meet that standard.
Cut to 2026, and the world looks different. Thanks to the artificial intelligence boom, electricity demand is surging. But Net Power hasn’t successfully commercialized its proprietary power plant technology. Even if it had, few companies are willing to pay the high premium required by Net Power’s technology, especially when cheaper options are available. And the government certainly isn’t going to require it. Emily’s story reveals what happened next.
When I helped start Heatmap more than three years ago, I never thought I would write this much about data centers. I believed that electricity demand growth was inevitable, sure, and I thought the U.S. power grid had to expand for the country to decarbonize. But I didn’t foresee such a staggering near-term surge in electricity demand. (To be fair, even long-time students of the computing industry’s energy use didn’t see the coming increase, either.)
What I didn’t anticipate — or understand — were two fast-moving trends. The first was that the AI models were responding to scale: the more text or images they consumed, or training they received, or (crucially) computational power they had access to, the better they got. The second was that Wall Street was happy to pay to continue that speedy scale-up. As long as models kept getting better, investors were willing to keep lending or investing more money to the companies making them. Through the power of those two scaling functions, the data center boom became one of the biggest infrastructure buildouts in American history.
In recent days, the second of those trends has started to falter. After a surprisingly hot inflation report last week, and a disclosure on Wednesday evening that Meta has gone free cash flow negative to finance its ongoing AI buildout, stocks with any proximity to AI or data centers stumbled on Wall Street today. The data center developers Coreweave and Vistra were each down about 10%, while Microsoft, Alphabet, and Nvidia all fell in daily trading. Meta’s stock lost almost 7% of its value; GE Vernova, which produces gas turbines, was down 10%.
These declines look more significant when you zoom out. Since late June, a good chunk of the AI portfolio has sagged into the red. Coreweave’s stock is down 54% over the past six months. Alphabet and GE Vernova have also posted declines since the summer. (The trend isn’t uniform: Nvidia and Microsoft are still very much in the green.)
None of this, to be sure, guarantees that the AI boom is ending or even slowing down. But this finance-applied friction is what such a slowdown could look like. Investors aren’t (yet) saying that AI is a business dud, to be clear, just that companies perhaps don’t need to go and construct all this stuff so fast. And given what the data center buildout has meant for energy construction — not to mention greenhouse gas emissions — that’s a trend nobody in climate or energy can ignore.
The zero-emission pioneer is doing the dirty work for the AI boom.
All kinds of companies have refashioned themselves to exploit the AI boom. A bitcoin miner became a data center developer, a shoemaker is building GPUs, and an electric vehicle company is integrating its powertrains into server racks.
Now, a company that once aspired to build one of the lowest-emitting power plants has pivoted to building one of the dirtiest in order to meet data centers’ requirement for speed to power above all. Net Power was founded to pioneer a new form of natural gas power plant with zero emissions, but it has given up on that technology and recently acquired 10 natural gas reciprocating engines that it plans to co-locate with a data center on the site intended for its first commercial plant.
“We believe the clean piece is important,” Net Power CEO Danny Rice said during an August earnings call when he announced the company’s pivot to building unabated natural gas plants. “But just as it’s always been, it will only come at scale once society’s basic energy pillars of reliable, affordable power are fully in place. Power demand is outstripping supply today.”
Net Power’s pivot is a sign not only that the AI boom has eroded market appetite for clean power, but that U.S. policies supporting carbon capture — primarily the 45Q tax credit that President Trump’s One Big Beautiful Bill Act recently expanded — are still not enough to support the technology’s deployment in the power sector.
“The long history of doing CCS in the United States is there isn’t enough public funding to get companies to deploy it at scale,” Jack Andreasen Cavanaugh, a senior research associate at Columbia University’s Center on Global Energy Policy, told me.
This is actually the second major pivot the company has made in less than a year. Last November, Net Power was still testing its proprietary oxy-combustion technology at its demonstration site in La Porte, Texas. The tech was designed to burn natural gas in a chamber with pure oxygen, producing a purer stream of CO2 than when natural gas is burned in regular air. Net Power’s system could recycle some of that CO2 for power generation and capture the rest more efficiently than a conventional gas plant could. The company had not yet demonstrated that the system could generate more energy than it used, however.
By that point, Net Power had determined that its oxy-combustion plants, if they ever even did generate net power, would not be economically competitive anytime soon. In its 2025 Q3 financial report, the company said it had “decided to broaden the scope of its business” and develop more conventional natural gas plants with carbon capture equipment tacked on. It signed a letter of intent with Entropy, a Canadian company building “post-combustion” carbon capture equipment, to bring the tech to the United States, and ordered two 30-megawatt Siemens natural gas turbines for 2028 delivery.
“For us and everyone else in the power and data center space these days, speed is everything,” Rice said at the time. “We believe gas turbines with [post-combustion capture] can and should be the fastest-to-market and most cost-competitive clean, firm solution for our prospective customers.”
He told investors that rising costs were one of the setbacks Net Power faced in building its first-of-a-kind oxy-combustion plant. It was highly unlikely the company could finance and build a $1.7 billion, 200-megawatt plant before completing all its testing, he said. The best-case scenario for the plant to come online was 2030 or 2031, and costs might keep rising with inflation. The company could either bet on that prospect and keep bleeding cash, or “slow down that spending in order to free up some of our resources for near-term accretive opportunities.” As a public company with shareholders to answer to, there was really only one choice.
By the end of 2025, Net Power decided to suspend its oxy-combustion development and testing activities altogether, according to its year-end SEC filing.
Six months later, the company’s thesis changed again. Gas turbines with post-combustion capture, it turned out, were not the “fastest-to-market and most cost-competitive” solutions that the company had hoped they’d be. Whereas once upon a time, electricity buyers considered a range of factors when shopping around for power, including carbon emissions, the reality was that they were now only looking for three qualities: speed, reliability, and scale. “Natural gas power generation, co-located with customer load, and deployable on a fast timeline, is how we expect to meet that demand today,” Rice told investors, adding that the company hoped to add carbon capture to its projects in the future.
To date, only one proposed U.S. natural gas plant with carbon capture has announced a deal to sell its prospective power. In October 2025, Google signed a power purchase agreement with the Broadwing Energy Center, an Illinois plant under development by a company called Low Carbon Infrastructure.
“There is a massive demand for unabated gas right now, and there is much less of a demand for carbon capture,” Cavanaugh said. He told me there are still lots of conversations happening between hyperscalers and carbon capture companies, but the physical realities and costs of capturing, transporting, and storing carbon from natural gas plants remain obstacles.
The Global CCS Institute published its annual Global Status of CCS report this week, which found more than 266 carbon capture, transport, or storage projects are under development in the U.S., but permitting delays and policy uncertainty are stalling their progress. “Inflation and rising capital costs have weakened project economics, reducing the effectiveness of existing policies, such as tax and investment credits,” the report said.
That doesn’t mean there aren’t still companies trying. Net Power may have given up on oxy-combustion power plants for now, but Arbor Energy, a startup founded by former SpaceX engineers, is just ramping up. Arbor announced a milestone in the development of its own oxy-combustion power generator last week, running a key piece of its system — a supercritical CO2 turbocompressor — for more than two hours at high speeds.
Arbor differentiates itself by using 3D-printed turbines and developing smaller, more modular plants. It’s scaling more incrementally than Net Power tried to, starting with a 1-megawatt demonstration plant in California that is “weeks away” from operating, the company’s Chief Operating Officer Alicia Harmon told me — although the project won’t include carbon storage. It plans to build a 25-megawatt demonstration plant by 2028, also sans storage, before manufacturing commercial-scale systems.
Arbor actually went through a pivot of its own due to the data center boom. The founders originally planned to focus on bioenergy with carbon removal, using the oxy-combustion technology to generate power from biomass and storing the resulting CO2 underground. Over time, though, it became clear that demand for power outpaced demand for carbon removal, and natural gas was more abundant than biomass.
I asked Harmon whether the company thought there was market demand for carbon-capture gas plants. Is anyone willing to pay that green premium right now? “Honestly, my answer is no,” she said, but the company sees a path to erasing the green premium by the early 2030s. She added that Arbor’s technology is already “very close” to parity with combined-cycle natural gas plants when the 45Q tax credit is taken into account.
Last month, Net Power announced it had acquired 123 megawatts’ worth of Wärtsilä reciprocating engines, in addition to the Siemens turbines it had already ordered. Reciprocating engines are among the dirtiest natural gas power-generation technologies. A recent report from Earthjustice estimated that a 1-gigawatt plant powered by reciprocating engines would emit 1.5 times as much CO2 per year as one powered by the “combined cycle” technology most modern plants use, and twice as much nitrogen oxides and fine particulate matter. It has not yet disclosed any data center partners to sell the power to.
Net Power declined to comment on this story.
Ben Allen wants to reform the existing market. Jane Kim wants a revolution.
From Crescent City to Coronado, California voters are facing decisions on a down-ballot strewn with over a dozen propositions and a series of statewide Democrat-versus-Republican races with mostly foregone conclusions.
And then there’s the insurance commissioner.
In the race to oversee California’s insurance market, a $452 billion-in-premium-volume monster imperiled by insurer defections and disaster risks, Democratic State Senator Ben Allen, whose district includes Pacific Palisades, is facing off against Jane Kim, a progressive former San Francisco supervisor.
Kim has the support of Vermont Senator Bernie Sanders — it’s the first thing you see about her when you Google her campaign. She previously served as his California political director during the 2020 presidential race, and she appeared earlier this month at an event with the senator in support of the state’s proposed billionaire wealth tax.
Allen, by contrast, won the endorsement of the state’s Democratic Party and its two incumbent senators.
There has been little public polling of the race, but one September survey showed Kim leading Allen 25% to 18%, with more than half the electorate undecided.
“My opponent and I are not even running for the same office,” Kim told me. “He’s running for what this office used to be, and I’m running for what this office could be.”
Allen wasn’t worried about Kim’s characterization in my interview with him, telling me, “I want to fix the market that we have and make it work. My opponent wants to build a new state insurer that nobody has priced.”
Nowhere are the stakes of insurance regulation higher than in California. On its own, the state’s insurance market would be the third largest in the world, according to the National Association of Insurance Commissioners. Homeowner insurance premiums have risen 84% from the end of 2020 to March 2026, according to research from Stanford’s Climate and Energy Policy Program. Several large insurers have either left the market entirely or stopped writing new policies.
California’s creaky and complex regulatory environment for insurers has combined with its famously flammable environment (all beset by a warming climate) to put regular policyholders at risk of losing their policies or bailing out those who can’t get covered. “Climate risks grow, and our mechanisms for dealing with it lag behind,” Matt Weiner, the chief executive of the wildfire policy group Megafire Action, told me. (Weiner said he was supporting Allen in his personal capacity).
Rates for homes insured by the FAIR Plan, the barebones insurer of last resort, have more than doubled from about 2% to 5% over that same period, with FAIR Plan coverage spreading from just high-risk areas to even areas with low and moderate wildfire risk. The plan required a $1 billion assessment from the state’s insurers in 2025 following major Southern California fires. “This trend is a symptom of many homeowners’ inability to secure insurance in the conventional market,” according to the Stanford researchers.
Allen seeks to make the insurance market work better, building on reforms implemented by current Insurance Commissioner Ricardo Lara. Allen described the reforms, which encourage insurers to write policies in high-risk areas and allow them to use forward-looking projections, as a “bit of a band-aid” that doesn’t “actually get to the core of the problem, which is making these communities less risky.”
Allen’s plan for the California insurance market involves both reviewing rate proposals more quickly, incorporating more data into those rates (which may push rates up, but also keep insurers in the market), and mobilizing the whole of government to invest in home hardening and resilience to lower risk and bring premiums down. Allen wants to, well, insure “that risk reduction is actually incentivized and rewarded by the insurance market,” he told me.
This would mean that “there will continue to be certain properties that are going to be so high risk that they really will and ought to be paying significantly more than everybody else,” he added.
When I asked him to elaborate on his vision for California’s insurance future, he told me, “My hope is that when a family and a neighborhood commit to hardening defensible space and community-scale mitigation, that should show up on the bill.”
Jane Kim, on the other hand, is interested in an insurance revolution, which would require — as her most famous supporter might put it — a political revolution as well. Her centerpiece proposal will be familiar from anyone who has followed Sanders’ career: a single-payer disaster insurer.
The plan, which she told me was a “concept and a proposal,” would be funded by a levy placed on insurers, and then a public insurer would invest in the market, buy reinsurance, and pay out claims. (Her opponents have criticized her for not being forthcoming enough with details). She says her plan would not be able to cover a Palisades- or Altadena-level fire in its first year, “but no insurance company can cover a catastrophe of that level.”
The nonprofit nature of the program, she adds, would let the state fund mitigation work directly. While such a program would require legislative action, “the great thing about campaigns is that this is trying to debate big ideas with voters,” Kim said.
In response, Allen cited a report from the California Earthquake Authority, which modeled a state disaster insurer (albeit not Kim’s plan specifically) could require $25 billion in capitalization. A more thinly capitalized insurer could mean $2,000 assessments on every policyholder in the state to cover an extreme wildfire disaster, the report said. “That’s the honest price of what she’s proposing,” Allen said.
“I also have a plan that’s actually grounded in reality and fixing the problems right now. It's not based on some pie-in-the-sky set of ideas that have no precedent, that have no real meat on the bones,” Allen told me.
One of Allen and Kim’s former opponents, Patrick Wolff, who fell short in the top-two primary election in June, told me that “the charitable interpretation of Kim’s platform is she does not think the current system can be made to work, and so she essentially wants to redesign and reimagine the entire system.” (Wolff has endorsed Allen). But, he added, “she’s coming at it from a set of solutions that were baked-in before she started, and then she's fitting [those] into her campaign.”
Moira Birss, a senior fellow at the Climate and Community Institute who said she had “provided input” to Kim’s campaign, but wasn’t speaking on its behalf, told me she “really recognizes that we are yet again in a situation where the private insurance market is not responding to a need that we as communities and as society have for this financial safety net of disaster insurance, and that we need a public approach.” She said the plan would build on lessons learned from New Zealand, which has public natural disaster insurance funded through a levy on fire insurance, and from the National Flood Insurance Program and the FAIR Plan.
Kim is happy to embrace the more ideologically charged vision of her campaign, telling me, “I am talking about transforming this office to be a place where we are leading on, and taking on, economic inequity, a wealth gap, and the climate crisis.
“I don’t even view my opponent as Ben Allen — I’m not running against Ben Allen,” she went on. “I’m running against the status quo.”