If you’re considering buying a new electric vehicle (EV), you have less than three months to combine tax credits from both the Joe Biden and Donald Trump administrations. Here’s how to stack these credits to save thousands:
The 2022 Inflation Reduction Act offers up to $7,500 in tax credit for new plug-in EVs or fuel-cell electric vehicles, while “Big Beautiful Bill” provides an annual tax credit of up to $10,000 on the interest of loans for new vehicles assembled in the US. However, this credit phases out for incomes above $100,000 (individual) and $200,000 (jointly).
To maximize savings, consider purchasing a used EV, which can cost $20,000 less than new models. You can also combine Biden’s $7,500 tax credit with Trump’s annual interest credit, but be aware of the income limits.
According to Kelley Blue Book, the average price paid for a new EV is $57,734, while used EVs cost around $37,734 (after the $4,000 tax credit). Over five years, this can save you $9,490 on gas compared to a gas-powered car. However, if you’re set on purchasing a new EV with advanced features, it may not be the most cost-effective option.
Before making a decision, review the fine print: Big Beautiful Bill excludes fleet purchases, commercial vehicles, and leasing, while the Inflation Reduction Act requires you to buy the car for your own use and assemble in North America.
Source: https://eu.usatoday.com/story/graphics/2025/07/05/trump-big-beautiful-bill-car-tax-credits/84450714007