Senate Republicans push to eliminate key EV tax credits, proposing immediate reductions for leased imports and a complete phase-out within 180 days.
US Senate Republicans introduced a tax and budget bill that would eliminate several electric vehicle (EV) tax credits on 16 June 2025.
The proposal would end the USD 7,500 credit for new EV purchases 180 days after enactment and immediately terminate the credit for leased EVs assembled outside North America.
Leased EVs would remain eligible for the credit for 180 days if they meet the same assembly, battery, and mineral content requirements as new vehicles. The bill also proposes ending the USD 4,000 tax credit for used EVs 90 days after approval.
The Senate plan differs from a separate House proposal, which would extend the USD 7,500 credit for new EVs through 2025 and for manufacturers that have sold fewer than 200,000 EVs through 2026.
The House version also includes a USD 250 annual fee on EVs and USD 100 for hybrid vehicles to fund road maintenance, and proposes phasing out EV battery production credits in 2028.
The Senate bill also includes a provision to exempt interest on auto loans for new US-made vehicles from federal tax through 2028, with a phase-out for individual taxpayers earning more than USD 100,000 annually.
