Is this the end of America’s affordable electric vehicles?
Lawmakers return to launch details of Trump’s “big beautiful bill”
Lawmakers returned from the break and presented details of President Donald Trump’s legislative agenda.
- “Big and beautiful bills” include tax cuts, Medicaid reductions, and SNAP expenditures.
- The tax bill also proposes to eliminate the Obama administration’s federal electric vehicle tax incentives entirely.
- Eliminating the EV tax credit could make some of the most popular electric vehicles undesirable for consumers.
President Donald Trump’s “The Big Beautiful Building” covers 1,116 pages. These pages include significant reductions in clean energy incentives in many sectors, such as transportation.
To reduce the emissions produced by gas-powered vehicles, the federal government began offering Americans an electric vehicle tax credit of up to $7,500 during the Obama administration. This makes expensive electric cars more affordable and accessible to the average American driver. Among Trump and House Republicans, the proposal for a “big, beautiful bill” is a measure to kill tax credits in the coming years.
President Donald Trump’s “Big Beautiful Building” aims to get EV tax credit
One big and beautiful invoice document, 30 pages, section 112002, titled “Clean Vehicle Credit End.” The credits were originally scheduled to expire on December 21, 2032. The provisions of the bill are set to “accelerate the expiration until December 31, 2025.” Americans will lose the ability to claim EV tax credits in 2026.
According to MarketWatch, the bill also targets EV and hybrid vehicle owners under a proposal from the House Transportation and Infrastructure Committee. Electric vehicle owners can charge $250 a year, and hybrid owners can charge $100 a year if the invoice is passed. So why are there attacks on electric vehicles and what does this mean for car buyers?
Why federal electric vehicle tax credits are under attack
The president has long been targeting EVs and has openly expressed his negligence against the former president’s mission calling for former President Biden’s mission to impress a large portion of his portfolio by 2030. Trump says 40% of Biden’s electric vehicle missions will disappear.
President Trump is not an advocate for electric vehicles despite his proximity to Tesla CEO and senior adviser Elon Musk. Instead, the president is a massive supporter of the oil and gas industry. His pledge to “drills, babies, drills” was one of the main topics on his campaign trail.
What is EV Tax Credit Removal for American Drivers?
If a “big and beautiful invoice” is finally passed, it could be the end of the era for American car buyers who use tax credits strategically to buy vehicles. The tax credits have created popular electric vehicles like the Tesla model, which is affordable for many drivers. Eliminating that could have a serious impact on EV sales across the industry.
If EVS is suddenly affordable, it can become undesirable for many consumers. The Chevrolet equinox EV offers a tax incentive of $26,100. If you remove the incentive, its starting price is $33,600 before taxes and additional charges.
The Ford F-150 Lightning Electric Pickup truck starts at $55,495 before taxes and fees for the EV tax credit. Without incentives, the price is $62,995. The existence of tax credits is a big seller for many popular EVs. Passing the bill would likely make electric vehicles much more expensive.
