From Yahoo Finance: 2025-05-12 20:12:00

House Republicans proposed eliminating the electric vehicle tax credit and fuel efficiency rules as part of a tax reform bill. The plan includes repealing the $7,500 new-vehicle tax credit and a $4,000 used-vehicle credit, potentially giving an advantage to competitors like China. The proposal also aims to bar credits for vehicles using Chinese components.

The U.S. Treasury awarded over $2 billion in EV rebates in 2024. The proposal keeps a battery production tax credit but may prohibit it for vehicles using Chinese components. A provision could impact cars powered by Chinese battery tech licensed by American companies. Republicans also aim to end a loan program supporting advanced tech vehicle manufacturing.

Outstanding loans from President Biden’s term include $9.63 billion to Ford-SK On for battery plants, $7.54 billion to Stellantis-Samsung SDI for EV battery plants, and $6.57 billion to Rivian for an EV plant. The proposal could impact these loans and corporate fuel economy standards. The Energy and Commerce Committee will review this portion of the plan.

Read more: US House Republicans seek to kill EV tax credit, loan program