EVWire brief: A new bill introduced by House Republicans wants to eliminate the current $7,500 federal tax credit for new EVs in the US, the $4,000 used clean vehicle credit, and the commercial clean vehicles credit.
Republicans also want to end the Commercial Clean Vehicle credit and alternative fuel vehicle refueling property credit on Dec 31, 2025. On commercial vehicles, it writes this โshall not apply with respect to vehicles placed in service before January 1, 2033 and acquired pursuant to a written binding contract entered into before May 12, 2025.โ
You can find the find the specifics in this bill document from page 216 starting with โTERMINATION OF PREVIOUSLY-OWNED CLEAN VEHICLE CREDITโ
Both of these would expire on 31 December 2025 with the new bill, except for the manufacturers which havenโt surpassed the 200,000-unit sales cap, as they would be eligible for one more year.
The bill is set for review by the influential House Ways and Means Committee this week. The battery production tax credits currently in place is preserved, although slightly adjusted to disqualify EVs using battery components made by certain Chinese companies or under Chinese licence agreements starting in 2027.
Republicans are also seeking to eliminate the Department of Energyโs Advanced Technology Vehicles Manufacturing Loan Program, which has so far allocated over $23B in loans to three large gigafactory projects: $9.63B to Ford+SK joint venture BlueOval SK, $7.54B to Stellantis-Samsung SDI venture and $6.57B to Rivian.
We knew this plan was coming for a while, but this is the first step in legislation to make it happen.
Elon Musk also left his on the topic of this bill text:
Sources: Official bill proposed; Reuters.
