President Donald Trump’s “Big, Beautiful Bill” proposes eliminating the federal electric vehicle tax credit, which could make affordable electric cars less desirable to consumers. The bill includes significant cuts to clean energy incentives and would accelerate the expiration of the EV tax credit from December 21, 2032, to December 31, 2025. Americans would lose access to the $7,500 tax credit in 2026.
The elimination of the EV tax credit could severely impact electric vehicle sales across the industry. Popular models like the Tesla Model Y and Ford F-150 Lightning would become less affordable without the incentive. The absence of the tax credit would increase prices by thousands of dollars, making electric vehicles less attractive to consumers.
Trump’s administration has been critical of electric vehicles, with some stating that they could lead to 40% of all U.S. auto jobs disappearing if manufacturers are forced to meet a mandate for electrification. However, experts have disputed this claim, citing no evidence to support it.
If the “Big, Beautiful Bill” passes, it would mark the end of an era for American car buyers who relied on the tax credit to purchase electric vehicles. The impact on consumers and the auto industry would be significant, with many popular EV models becoming less accessible due to increased prices.
Source: https://eu.usatoday.com/story/money/cars/2025/05/19/trump-big-beautiful-bill-electric-vehicle-tax-credit/83673329007