From Yahoo Finance: 2025-05-19 08:07:00

President Trump’s ‘Big, Beautiful Bill’ proposes cuts to clean energy incentives, including ending the electric vehicle tax credit by 2025. House Republicans also suggest annual fees for EV and hybrid vehicle owners, potentially impacting car buyers and the affordability of popular electric models like the Tesla Model Y.

The bill, if passed, could significantly increase the cost of electric vehicles by eliminating the $7,500 tax credit. This change would make EVs less affordable and less appealing to consumers, potentially hurting sales and impacting the industry. The Ford F-150 Lightning and Chevrolet Equinox EV are among the models affected by the proposed changes.

President Trump’s stance against electric vehicles aligns with his support for the oil and gas industry. Despite his proximity to Tesla CEO Elon Musk, Trump has shown little support for EVs. The ‘Big, Beautiful Bill’ could mark a major shift for American car buyers who have utilized the tax credit to purchase electric vehicles at a more affordable price.

Read more: Trump’s ‘Big, Beautiful Bill’ would kill tax incentive that’s powered EV sales. What to know