Sen. Bernie Moreno proposes changes to Trump’s auto legislation targeting EVs

A proposal by car dealer-turned Senator Bernie Moreno of Ohio, to modify certain elements of President Trump’s “big, beautiful” bill could elevate its impact on the auto industry—sooner rather than later.

The details: Moreno is pushing for a few tweaks to the legislation—known as President Trump’s “big, beautiful bill”—with a specific focus on cars and trucks, he told Semafor. 

• One element of Moreno’s proposal is to limit the car loan interest deduction initiative to only new vehicles assembled in the U.S., rather than the broader range of cars approved by the House.

• The Ohio Senator is also seeking to eliminate the federal EV tax credit by September 30, 2025, instead of waiting until the end of the year to kill the measure. 

• In addition, Moreno is pushing for the House to double the annual fees for EVs from $250 to $500 and raising the fee for hybrids from $100 to $250 while lowering the excise tax on big trucks from 12% to 2%.

Why it matters: Ending EV tax credits three months early and doubling fees on electrified cars would make them significantly more expensive just as automakers are already struggling with weak EV sales. Meanwhile, limiting loan deductions to U.S.-assembled vehicles would give domestic manufacturers a major advantage over imports.

Between the lines: That fate of Trump’s bill in its current state is uncertain, as it’s being currently debated in the Senate. However, Moreno—who is highly regarded in D.C. for his work advocating for dealers—certainly wields some weight in garnering support for his proposals. 

• According to insiders, Trump has already expressed support for Moreno’s suggestion that the measure involving car loan interest deductions be limited to only new vehicles assembled in the U.S.

• The President has also been adamant about wanting to rollback the EV measures put in place by the Biden administration, making it unlikely that he would object to pushing up the date to eliminate the EV tax credit.  

Bottom line: The modifications would fundamentally change the economics of car buying by removing financial support for electric vehicles while adding incentives for domestically-produced cars. Whether this accelerates American manufacturing or hampers the transition to cleaner technology depends on how buyers and automakers respond to the new cost structure.

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