The $7,500 federal EV tax credit from the IRS has been in jeopardy since President Donald Trump’s second inauguration in January. Trump mentioned cutting electric vehicle incentives during his 2024 campaign, and there appears to be enough political will in Congress to do so. Now, Reuters reports that Senate Republicans proposed a tax budget bill on Monday that would end the tax credit 180 days after it’s signed into law if it reaches the president’s desk. It would also eliminate the $4,000 incentive on used EVs 90 days after approval.
This plan is slightly different than the version of the bill that the House of Representatives passed last month. The House version of the One Big Beautiful Bill Act accelerates the timeline for sunsetting the federal electric car tax credit for both new and used cars from the end of 2032 to the end of 2025.
However, the House version of the bill extended a grace period for automakers that have sold fewer than 200,000 EVs to the end of 2026. The Senate version eliminates this grace period. This wouldn’t impact GM either way because the automaker hit this milestone in 2019 since the Chevy Volt plug-in hybrid was included in that equation. Although not a BEV, the Volt qualified for the full $7,500 tax credit back then.
For the time being, the provision to make interest on car loans for American-made vehicles tax deductible is still in the bill. If it passes, drivers can deduct up to $10,000 in car loan interest for eligible models. For GM EVs, this would apply to all but the Chevy Equinox EV and Chevy Blazer EV, which are both made at GM’s Ramos Arizpe plant in Mexico. All other electric GM models currently on the market are assembled in the U.S.
The bill also includes an annual federal fee of $250 for EV owners, intended to offset lost gas tax revenue. A bill was introduced in the Senate in February to add a $1,000 one-time tax to electric vehicle purchases, but that idea didn’t make it into the One Big Beautiful Bill Act.
Comments
In Michigan we already pay a $155 EV “lost 28 cent/gal gas tax” add-on fee in our our annual registration ($400+ total). Now the Feds want their cut of an additional $250/yr for their 18 cent/gal “lost tax”? Quick math, that is collecting Fed fuel tax for 115 gallons of gas PER MONTH! DC math!
I already did the math, I would have to drive 40,670 miles per year to break even on the Federal tax alone. I pay the state of WI $185 each year on top of the registration fee.
The Republicans once again prove how they are in the pocket of Big Oil and never cracked a science book.
Big Oil does not maintain the roads.
Who TF said they did?
You, implying that the added tax was to benefit big oil.
The taxes paid on the sale of “Big Oil” products maintain our roads ! While EV freeloaders use them “no charge” .
Taxpayers should not be funding someone else’s car purchase…
Agreed. And I own a lyriq. Anyone that can afford a new $50,000 car does not need a government break. Best vehicle I have ever owned and will never go back to an ICE vehicle.
I agree, so you’re telling us you didn’t take the $7500 tax break?
Tax credits mean people getting to keep more of their own money. Thought conservatives liked tax cuts?
And taxpayers should not help foot your mortgage interest with a tax credit. Why does the administration want to allow interest deduction for ne US built vehicles? If you make money from tips and overtime it is income and should be taxable.
ironically after the credit ends the prices will drop the same. huh weird
What a mistake. The EV credit isn’t to make it easier to BUY an auto. It’s an incentive to stop POLLUTING the air, water, and land by taking dirty ICE cars off the road.
Just part of the plan by the dirty Oil industry to keep Americans buying their expensive gas as ICE cars continue to pollute the air in our towns and cities. That oil will only get more expensive as Oilys deplete their oil fields.
Unless you have a jackhammer, there is no way you’ll ever get that to penetrate the thick skull of the of the MAGA cult.
Exsanguinate and cruzin131.
Two more hapless victims of the Democrat death cult
Overcolleged imbeciles.
Everything they know, they read in a book.
It must be true , thier loser professor, who never had any experience outside of the leftist bubble of academia, told them so.
In the community we know this type well.
They are the “saviors” of the “oppressed”
The worship the creation but deny the creator.
The are laughed at and despised.
Good for nothing but a $$$ shakedown.
Poor MAGAT got his poor little feelings hurt, SABOD!
Dumb DemocRAT has no facts, again, just the usual insults and worthless “opinion” as he continues to lament the departure of his Pedophile cult leader.
Sadly, it’s true that unburned hydrocarbons and other pollutants from gas and diesel engines have caused massive air pollution in cities and towns in the US. The Lung Association recently put out a report listing the cities with the dirtiest air. Los Angelos and Houston are at the top but also lots of other towns. This pollution causes tens of thousands of deaths a year in the US. Heart disease and respiratory disease, and reduced lung function in children. The Oil and Gas industry is making billions of dollars off of selling their products. They don’t care about your health. Kick your fix and get off the gas.
So how much pollution does it take to make the batteries for the ev’s.Its quite a bit more than everyone thinks!
Poor Montie must be on of Trump’s uneducated supporters. He doesn’t even know how to spell words correctly…..(thier)? I guess he must have been disappointed when we fired his King in 2020.
Man you gotta love these “we lost last November” meltdowns. So entertaining.
Unless you take every ICE vehicle off the road globally and replace them with EVs, the so called pollution will not be reduced in any measurable way. Then there is the questions of what powers these EVs. In China, it is king coal so for that nation, any pollution reduction is nullified.
Got it, unless we can do it 100% immediately, we should just do nothing. I guess god will take care of it if we all pray really hard.
There’s a trade off for everything. Are people willing to spend more for EVs (they may not want), appliances, green energy, and job loss for the notion that doing so MIGHT reduce CO2s? There’s a lot of moving variables here including politics. Perhaps the government instead of giving away tax breaks, they should take that same money to invest in research for on board carbon capture device systems and synthetic fuels?
Tigger – Transportation and power generation are responsible for over 50% of CO2 emissions. Easily cutting back on those will take a big chunk out of the total CO2 emissions. But remember, the really toxic pollutants are emitted in our local communities. They are causing all those health impacts now and reduction of that local pollution will save lives and reduce other harmful health effects immediately.
You is right . Butt tigger produces more METHANE GAS. with it*s mouth then all
the things you mention . You is right Cruzin131. Also tigger is rite we need carbon devices systems to
HOLD THAT tigger.
The wonderful thing about Tiggers
Is Tiggers are wonderful things
Their tops are made out of rubber
Their bottoms are made out of springs
They’re bouncy, trouncy, flouncy, pouncy
Fun, fun, fun, fun, FUN!
But the most wonderful thing about Tiggers
Is I’m the only one
Tiggers are cuddly fellas
Tiggers are awfully sweet
Everyone elses is jealous
That’s why I repeat and repeat
The wonderful thing about Tiggers
Is Tiggers are marvelous chaps
They’re loaded with vim and with vigor
They love to leap in your laps
They’re jumpy, bumpy, clumpy, pumpy
Fun, fun, fun, fun, FUN
But the most wonderful thing about Tiggers
Is I’m the only one
I’m the only one
I didn’t know you were such a fan.
Hogwash. Another EV Troll lying.
Hey this is GM Authority, we don’t want to hear about your “partners” bath soap.
An end to subsidizing this climate alarmist pseudo science can’t happen soon enough.
Every year the summers are hotter, the winters milder, devastating storms are more frequent and powerful, but it’s pseudo science. I guess it’s possible you’ve already suffered heat stroke and you’re now mentally challenged, it’s the only excuse for your comment.
All those terrible things only exist in the computer modeling world. Check the actual NOAA data.
Looks like you’re not flying to anymore vacations or business meetings….or is that for everybody else?
AUUU tell us how you really feel. As we don*t give a S—. You not fooling us. You is
ROCKET SCIENTIST ( yapping about climate change) scared people will realize you are full of it. And you *ll loose you r job . Me thinks. How is dat for a mentally challenged person???
@Money For Nothing Hey numbskull, me saying that Republicans are in the pocket of big oil implies that big oil buys off the Republicans. Geez you MAGATS are bonkers
The sooner the better!