The One Big Beautiful Bill Act repeals federal EV tax credits, removing $7,500 for new and $4,000 for used vehicles starting September 2025.
A GOP-backed bill set to take effect in September 2025 eliminates federal tax credits for electric vehicles, scrapping the $7,500 incentive for new EVs and $4,000 for used ones. The move follows stalled funding for EV charging infrastructure and reduced manufacturing subsidies under the One Big Beautiful Bill Act.
The credits were originally introduced under the Inflation Reduction Act to accelerate EV adoption. Analysts had projected the incentives would support domestic EV sales through 2030, but the rollback aligns with broader policy shifts favoring fossil fuels.
Markets have yet to react significantly, though automakers and clean energy sectors may face headwinds as demand incentives disappear.