Sponsors (15)
The bill simplifies the tax code and reduces federal subsidies by repealing and narrowing several clean-vehicle and charger credits, but in doing so raises costs for new and used EV buyers, small businesses, and charger installers — likely slowing EV adoption and worsening equity and environmental outcomes in the near term.
Taxpayers, small businesses, and the IRS face a simpler tax code because the bill repeals or narrows multiple clean-vehicle and charger credits, reducing administrative complexity, compliance burdens, and fraud risk.
Buyers who complete purchases of qualifying new clean vehicles within the 30-day transition window keep eligibility for the credit, preserving benefits for a narrow group of imminent purchasers.
Taxpayers who do not own EVs or chargers will no longer subsidize EV charging installations or certain vehicle credits, reducing federal outlays and potential market distortions.
Buyers of new qualifying clean vehicles (beyond the 30-day window) lose the federal clean vehicle tax credit, raising out-of-pocket costs and likely slowing EV purchases and related emissions reductions.
Low- and moderate-income purchasers of used clean vehicles lose the used clean-vehicle credit, making cleaner transportation less affordable and reducing equity in access to lower-emission vehicles.
Small businesses and commercial fleets lose the §45W and related credits, increasing vehicle acquisition costs for firms that otherwise would electrify fleets and slowing commercial vehicle decarbonization.
Based on analysis of 5 sections of legislative text.
Repeals federal tax credits for new, used, and commercial clean vehicles and excludes EV charging property from a refueling-property credit.
Introduced February 12, 2025 by John A. Barrasso · Last progress February 12, 2025
Repeals the main federal tax credits for electric vehicles and related charging-property incentives. Specifically, it eliminates the new clean vehicle credit, the credit for previously-owned clean vehicles, and the qualified commercial clean vehicle credit, and it removes electric vehicle recharging property from a separate refueling-property credit. The changes take effect for purchases or written binding contracts made more than 30 days after enactment, and the bill makes multiple conforming edits across the Internal Revenue Code and one change to title 23, U.S. Code, to remove references to the repealed credits.