Republicans in the Senate have now updated Trump’s tax and budget bill to kill the $7,500 tax credit for electric vehicles by the end of September.
The Senate is currently finalizing its version of the GOP’s budget and tax bill, better known as Trump’s Big Beautiful Bill, that passed the House last month.
As expected, the entire thing looks like it’s coming straight out of a fossil fuel industry wet dream, which should be surprising considering Trump told the oil industry he would do this if they gave him over $1 billion, which they did.
The only person who appears surprised is Elon Musk, even though Trump and the GOP campaigned on doing this with his own money.
While it has been clear for a while that they are going to eliminate all incentives for electric vehicles and renewable energy, we have been reporting on the evolving details about how it will happen over the last few months.
As of earlier this month, the plan was to end the $7,500 tax credit for electric vehicles 180 days after the bill was signed, which they aim to achieve by July 4th, with a provision for automakers who have delivered fewer than 200,000 EVs in the US.
The Senate has now released an updated version of the bill that now kills the electric vehicle tax credit altogether by September 30th:
IN GENERAL.—Section 30D(h) is amended by striking ‘‘placed in service after December 31, 2032’’ and inserting ‘‘acquired after September 30, 2025’’
The new bill also accelerates the phase-out of incentives for solar, wind, and energy storage projects, while adding additional taxes if they use any materials from China.
Electrek’s Take
The US is already significantly behind the rest of the world in terms of EV adoption, and this will only increase this gap.
It will only further isolate the US from the world’s transition to electric vehicles and make the domestic auto industry uncompetitive on the world stage.
Ironically, Tesla, whose CEO helped make this happen by giving Trump and the GOP $300 million, is going to be the most affected.
I expected Tesla to start losing money in Q1 2026, but if this passes, I can see Tesla beginning to lose money in Q4 2025.
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