President Trump's "Big, Beautiful Bill" Will Kill the EV Tax Credit

by Tim Healey

Published: July 3rd, 2025

president trump s big beautiful bill will kill the ev tax credit

President Donald Trump's "Big, Beautiful Bill" passed today, and the bill holds mixed news for new-car buyers.

The good news is that if you buy a new, American-made* car and take out a loan, you can deduct up to $10,000 in interest from taxable income.

The bad news is that if you want an electric vehicle, the federal tax credits of up to $7,500 will go away in September, instead of 2032 as originally planned.

*What "American made" means in this context is unclear, especially since components for some new cars are build in other countries. We'd guess, if we had to, that this would apply to cars undergoing final assembly within U.S. borders.

Trump is expected to sign the bill tomorrow. We'll have more on the bill as the news merits, but for now, if you're an EV intender, you better get going.

[Image: Jonah Elkowitz/Shutterstock.com]

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Tim Healey

Tim Healey grew up around the auto-parts business and has always had a love for cars — his parents joke his first word was “‘Vette”. Despite this, he wanted to pursue a career in sports writing but he ended up falling semi-accidentally into the automotive-journalism industry, first at Consumer Guide Automotive and later at Web2Carz.com. He also worked as an industry analyst at Mintel Group and freelanced for About.com, CarFax, Vehix.com, High Gear Media, Torque News, FutureCar.com, Cars.com, among others, and of course Vertical Scope sites such as AutoGuide.com, Off-Road.com, and HybridCars.com. He’s an urbanite and as such, doesn’t need a daily driver, but if he had one, it would be compact, sporty, and have a manual transmission.

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ToolGuy™ on Jul 12, 2025

Oh, Canada (Part II) [2023]

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ToolGuy™ on Jul 20, 2025

HEY CAN WE DISCUSS TOMATOES PLEASE? THANKS

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