House Republicans introduce bill to end federal EV tax credits

CDG News Alert (< 1 min. read)

Driving the news: House Republicans unveiled a bill Monday to eliminate tax credits for electric vehicles and gradually phase out incentives for clean energy sources.

For context: The GOP proposal would end the $4,000 tax credit for used EVs after this year and the $7,500 credit for new EVs after 2026. On top of that, the plan has additional restrictions capping eligibility for manufacturers who've sold more than 200,000 EVs since 2010.

Why it matters: Repealing these credits could derail billions in planned investment, raise prices for EV buyers, and disrupt demand signals driving manufacturing and infrastructure expansion. Even within the GOP, it’s divisive. Freedom Caucus members want a full repeal, while Republicans with clean energy projects in their districts are pushing for carveouts.

What we're watching: Beyond EVs, the bill also gradually reduces tax credits for low-carbon energy sources starting in 2029, with complete elimination after 2031.

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