U.S. Senate Republicans Propose Killing Federal EV Tax Credits

Over the past few months, the Trump administration and members of Congress have sought to roll back or eliminate certain automotive regulations pertaining to things like emissions, fuel economy standards, and electric vehicle mandates. Last month, the Senate voted to repeal California’s right to set its own emissions standards and force the phaseout of new ICE vehicle sales, and members of the House of Representatives introduced a bill aimed at nixing the federal EV tax credit around that same time. Now, those efforts continue.

According to Reuters, a group of Republicans in the U.S. Senate have proposed a new tax and budget bill that aims to kill off the existing $7,500 federal EV tax credit for consumers. If approved, that bill wound end the credit 180 days after it’s signed into law, and would also immediately put a stop to leased EV credits for models produced outside of North America. Additionally, the $4,000 credit on used EVs would end 90 days later, too.

This proposal is a bit different from the previously-mentioned House bill that would allow the new EV tax credit to continue through the end of 2025, and through 2026 for automakers that haven’t yet sold 200,000 electric vehicles. It would also provide an auto loan interest exemption on taxes for new vehicles vehicles produced in the U.S. through 2028 (with an exception for individual taxpayers making more than $100,000 annually), and it would impose a $250 annual fee for EVs and a $100 levy on hybrids slated for road repairs.