Overview

• The Senate approved a tax and spending package on July 1 that sunsets the $7,500 new-EV and $4,000 used-EV credits effective Sept. 30, 2025
• Vice President JD Vance cast the decisive vote in the chamber’s 51–50 split decision to accelerate the repeal
• The measure now moves to the House, where GOP leaders aim to secure final approval and send it to the president by July 4
• Automakers and advocates warn that ending the credits seven years early will drive up vehicle prices and hinder U.S. EV adoption
• Tesla CEO Elon Musk has condemned the budget bill and threatened to form a new political party if the repeal succeeds