Overview

• The proposed bill would phase out the $7,500 new-vehicle and $4,000 used-vehicle EV tax credits by December 31, 2025, with a one-year extension for automakers with fewer than 200,000 EV sales.
• A provision would bar battery tax credits for vehicles using components linked to certain Chinese companies or licensing agreements starting in 2027.
• The legislation also seeks to rescind funding for an advanced technology vehicle loan program and roll back other clean energy incentives, including wind and solar subsidies.
• Industry groups warn that the measure could harm U.S. manufacturing, jobs, and competitiveness, while benefiting international competitors like China.
• The bill faces an uncertain path in the Senate, but President Trump is expected to sign it into law if it passes both chambers.