Congress Passes Bill Ending EV Tax Credits 2025

Congress has passed a major Republican tax and spending bill that will end the federal $7,500 tax credit for new electric vehicles (EVs) and the $4,000 credit for used EVs after September 30, 2025, pending President Trump's signature. The legislation also phases out other clean energy credits and rebates, reversing incentives introduced under the 2022 Inflation Reduction Act. Experts warn this move will raise EV prices, potentially increase consumer electricity bills—especially in high EV adoption states like California—and hurt US automakers and the broader clean energy transition. Elon Musk has publicly criticized the bill and President Trump, who has suggested reviewing subsidies to Musk's companies in response. Dealers have urged a more gradual phase-out of the incentives, while analysts expect a rush in EV purchases before the credits expire. The bill passed the Senate by a narrow margin and now awaits final approval.