An amended version of the One Big Beautiful Bill Act (OBBBA) was passed by the U.S. Senate on Wednesday, and the final version was approved by the House of Representatives on Thursday. Now, on Independence Day, a signing ceremony is expected for President Donald Trump to sign the bill into law, formalizing many aspects of the platform Trump campaigned on in 2024.
The OBBBA contains much car-related legislation. Some federal requirements for automakers are relaxed, some tax credits are going away, and there’s a new incentive for Americans to buy cars made in the U.S.
It’s been predicted since Trump’s reelection that the days are numbered for the federal EV tax credit provided by the IRS. When the OBBBA is signed into law, America’s EV tax credit will officially go away on September 30th, 2025. Previously, it was scheduled to sunset in 2032. Time will tell whether automakers will adjust MSRPs accordingly, especially GM, which offers EVs in three brands across a wide price range.
The bill also eliminates fines for automakers failing to meet corporate average fuel economy (CAFE) standards first established in 1975. As recently as last Summer, GM had to pay a $145.8 million fine to the National Highway Traffic Safety Administration (NHTSA) because of excess emissions from several million 2012 through 2018 model-year full-size pickups and midsize crossovers.
Another Trump promise formalized in the OBBBA is tax-deductible interest on loans for American-made cars. When car shoppers buy a car assembled in the United States, they’ll be able to deduct up to $10,000 annually for tax years 2025-2028. This is well above what the average new car buyer pays in interest in a given year. It’s an “above-the-line” deduction, which means you can take the deduction in addition to the standard deduction and don’t need to itemize.
Another significant car-related piece of the OBBBA involves restrictions on EV battery manufacturing credits. Battery components made with help from “a prohibited foreign entity” won’t be eligible for manufacturing credits, namely China. A more specific list of prohibited entities will be established after the bill is signed into law. Additionally, 65 percent of the “direct material” costs in battery production must be attributable to subcomponents “mined, produced, or manufactured” in the United States in order to qualify for a battery tax credit.
Comments
President trump saves the USA again! Congrats Mr President 👏🏿
Trump is a loser
shut up, you open borders puppet.
The borders were never open. That’s a fabrication. Did Biden try to grant asylum to more migrants facing violence and gangs? Yes. They were given electronic monitors and provided a court date. If they failed to appear, they were arrested. The Borders were never open. That’s campaign rhetoric to make fear an issue.
Liar.
bulls***, tom homan exposed the truth, the borders were opened and you know it.
Are you F‘Ing insane? WTF did he save exactly?!
Now perhaps the automakers can take the money they wasted on EVs and meeting mandates to come out with some compelling new product
Trump pic=Tigger comment.
It hasn’t been compelling since they figured out how to make money on 70k pick ups and warmed over Kia’s. I would like to see a Firebird Esprit like the one Rockford drove. Today, they would put him in an Envista or whatever silver Kia GM has on the lot.
Kudos to GM for hedging a bet against EVs with the Gen 6 V8 investment. Great for those of us who want to see improvements in ICE vehicles instead of going head first into EVs.
Now it’s time to fire mary barra from gm.
Brush up your resume, get on LinkedIn and the job’s all yours. When they hire you, don’t forget I liked my ‘91 Cavalier RS wagon.
A few months ago, there was an article on this site that said that she will be retiring in December 2025, mandatory retirement. Only 6 more months!
I’m not sure it was an article but perhaps a comment of mine. GM has historically had a mandatory requirement age of 65. When numerous prominent GM executives have reached 65, they’ve stepped down. Assuming that policy will apply to Barra, she will retire at the end of next year, not this year. Her birthday is December 24, 1961 so on Christmas Eve next year, she should be gone.
I’d love to see her replaced by more of a “car guy” that would return GM to the days of building interesting cars that people dream of owning. Things do seem to be looking up for GM at the moment but much of the success comes from products I think she reluctantly kept in the lineup. Her grandiose vision of all EVs and autonomous vehicles or zero emissions, zero crashes and zero congestion has been a money wasting boondoggle with only limited success. Perhaps a new CEO would focus more on the customer and put their needs/wants first.
Fire the best CEO in the Auto industry? That would be really stupid. Who should they hire instead? Another white male “car guy/failed race car driver” or ex-jock? I own stock in both Ford and GM, Barra is excellent, I have no idea how Farley still has a job.
Nobody said she should be fired. Rather we said if you don’t like her, and many people don’t, that she’s coming up against GM’s mandatory retirement age soon.
I don’t like her not because of her gender but rather because she’s spent lavishly on so many big ideas like Triple Zero and then GM keeps having layoffs and product cancellations to pay for all that. The layoffs have been devastating to morale in Warren and reduced it to a new low and the money wasted on Cruise, for instance, could’ve paid for actual products for Buick or many other things the company badly needs.
Save the v8 manual sedan!
It would appear that all the “alternative facts” bald face lies, dirty underhanded tactics, and having Vance as VP , has been worth it to get rid of these insane lefty eco terrorist policies and restore north american auto manufacturing back to good ol’ gasoline. !!
So, the ends justifies the means? What happened to truth and reason? This July 4th should remind everyone on our foundational principles. Enlightenment. We are supposed to be a a beacon for the world. Give me a good reason why you resort to name calling?
See how you feel when your grandmother loses her Medicaid.
LOL. The price of everything in the economy is set to what old people with several decades of wealth building can afford. Boomers are the largest and wealthiest generation in the history of mankind. Prices and the entire economic system are also set to keep overinflated 401k balances and real estate values high via companies like Blackrock, who own and control every company in the Fortune 500. Their plan is to make sure younger, smaller,
less wealthy generations have to rent/ lease/ subscribe to everything they own. They have promised us that we’ll own nothing. Young people simply can’t afford life.
You think young people want or are even able to pay more taxes so the already wealthy generation can have free/ cheap Healthcare? How about rich doctors do more volunteer work for the poor elderly instead?
The Millennials are an even larger generation. Just wait until they retire.
Grandma would be on Medicare. It’s the abuse of Medicaid that’s being rooted out from the scammers and illegals.
Well if “your grandmother” is an illegal alien. Then she doesn’t deserve Medicaid.
As was pointed out Jose, most grannies are on Medicare, not Medicaid.
One of my friends had a son who had been living with a woman for 20 years, and had a son with her. He had a good job, owned a very nice house, and two late model cars with everything in his name so they could scam Medicaid. He had healthcare through work, but his “partner” and their son were on Medicaid and SNAP. She rarely worked but when she did she always took part time or under the table jobs so she wouldn’t loose her Medicaid and food stamps. He was making well above the national average and they were living a comfortable life. These are the kind of people the new bill is going to remove from Medicaid, and I’m all for it.
The BBB is a good start.
Medicaid cuts will cost him the congress at mid-term if good common sense us citizens open their eyes. Cuts on income taxes, mainly aimed at TTTTT( trumpy-trump-tariffs-turmoil- threaten) rich friends is a non sense when you see besos spend millions to get married in Venice, ITALY, not in the US.
trump-STRIKE ONE- cuts in Medicaid plus less taxes for his billionaire friends. trump-STRIKE TWO-cuts in weather prevision employees(see what happened in Texas, will be more than 70 dead persons including at least 30 children. And he does not believe in climate changes, H………ello. STRIKE TWO AND A HALF, muks is back with his trillions of dollars. ANXIOUS TO SEE THE MID-TERMS IN 2026.
I loved the smell of gasoline since I was a kid. Drill Baby Drill!
Burn baby burn!!! Hope you enjoy the smell of burning flesh.
It’s good that the Federal EV subsidies will end soon.
In 2025, it was reported that GM had a $1.7 billion loss on its EV business.
Unfortunately, someone always pays for the Government’s social engineering experiments. In this case, the consumer via price hikes will bail out Mary. We always get stuck paying for this crap. Thank goodness it will end soon.
Time for mary barra to be fired next.
If you’ve ever driven an EV, they’re actually pretty nice cars. I’ve driven numerous models.
The mistake is the hurried rush to produce more than the market can absorb through normal demand, and producing so many before there is infrastructure to support them.
The reason for this headlong rush can be traced to Tesla- Wall Street was dumping every dime they had into the “dream” of the future. Tesla’s actual business dynamics did not, and still does not, support their heady market capitalization value. Give credit – Elon Musk was good at selling this “vision” – kudos to him.
Fortunately, many companies now clearly see the error, and are wisely transitioning back to hybrids – which do have a good consumer acceptance rate.
Following misguided government policy is never smart business practice. Allowing the government to choose technology winners and losers is foolish at best.
Hydrogen fuel cells and solid state batteries show a lot of promise as future propulsion sources – why not let them develop? What’s the rush?
Time to drop a Blackwing V-8 in Celestiq!! That’s how you sell this vehicle.