Trump's Spending Bill Targets Electric Car Subsidies, Ends $7,500 Tax Credit

President Donald Trump's massive spending bill just passed the Senate — and if it becomes law, it could wipe out federal tax credits for electric vehicles (EVs) by September 30.

The bill, often referred to as Trump's "Big Beautiful Bill," passed by the narrowest vote possible, 51-50, with Vice President JD Vance casting the tie-breaking vote.

The bill now moves to the House, where lawmakers will finalize it before it can go to the president's desk.

According to CNBC, one of the biggest changes in the bill is the removal of a $7,500 tax credit for new EVs and a $4,000 credit for used EVs.

These incentives have helped make EVs more affordable for many Americans. If the bill passes as is, anyone wanting to take advantage of these savings will need to act fast.

"This is going to be the summer of the EV," said Ingrid Malmgren, policy director at Plug In America. "Because come the end of September, those credits will be gone."

The Senate version of the bill cuts the credits even sooner than the House version, which originally set the deadline for the end of the year. EV buyers would need to buy and take delivery of their vehicles by the end of September to still qualify for the incentive.

Trump's Spending Bill Cuts EV Incentives, Adds Tax Breaks for Rich

This move would undo a big part of former President Joe Biden's Inflation Reduction Act, which aimed to support cleaner transportation options through 2032.

The act helped reduce greenhouse gas emissions by encouraging people to switch from gas-powered vehicles to EVs.

The bill also includes big tax breaks for wealthy Americans, a slight bump in the child tax credit, and a new rule to stop taxing tip income.

However, it would also bring major cuts to Medicaid and food assistance programs, potentially impacting millions of low-income families, WION said.

Critics say this bill favors the wealthy and could hurt both the climate and working families. Tesla CEO Elon Musk even called it a "disgusting abomination," warning that ending the EV tax credits could cost jobs and slow down clean energy progress.

Even though electric cars often cost more than gas ones upfront — about $57,700 compared to $48,100, according to Kelley Blue Book — they are usually cheaper in the long run due to lower fuel and maintenance costs. Experts say tax credits like the $7,500 help bridge that price gap.

Originally published on vcpost.com