AsianFin -- U.S. House Republicans on Monday unveiled a sweeping tax reform proposal that would eliminate key federal incentives for electric vehicles, including tax credits and fuel efficiency standards aimed at accelerating the shift to zero-emission transportation.

The measure, which will be reviewed by the House Ways and Means Committee on Tuesday, calls for ending the $7,500 tax credit for new electric vehicles and the $4,000 credit for used EVs as of December 31. However, the new-vehicle credit would remain available for one additional year for automakers that have not yet sold 200,000 EVs.

Genevieve Cullen, president of the Electric Drive Transportation Association, sharply criticized the proposal, warning it would undermine U.S. leadership in clean energy and electrification.

“Abandoning federal investment in electrification is catastrophically short-sighted,” Cullen said, adding that the move could hand a major competitive edge to countries like China and put American manufacturing and jobs at risk.