Republican Senators Target Your EV Tax Credit | Carscoops

      If you're considering purchasing an EV, it might be wise to act quickly.

      A proposed bill could eliminate tax credits for new and used EVs within months.

      Leased electric vehicles manufactured outside of North America would also lose tax incentives under this new legislation.

      Revisions to the bill may shift the timeline before it receives Senate approval.

      The U.S. government may soon impose restrictions on electric vehicle buyers, as President Donald Trump's "One Big Beautiful Bill Act" seeks to eliminate the $7,500 EV tax credit. Although the Senate has several months to deliberate, Republicans have already prepared a separate tax and budget proposal that could terminate the credit even sooner, impacting both new and used EVs.

      Should the bill pass, it would revoke the $7,500 credit for new EV purchases within 180 days. Additionally, it targets leased electric vehicles, especially those manufactured outside North America, by removing tax incentives immediately. Buyers of used EVs wouldn't benefit either, as the $4,000 credit for used EVs would disappear just 90 days post-approval.

      Accelerating the Phase-Out of the EV Tax Credit

      Under the "One Big Beautiful Bill Act" approved by the House in late May, the EV tax credit would phase out after 2026—six years sooner than the Biden administration's previous plan. However, for most car manufacturers, the credit would be unavailable by the end of this year, as in 2026 it would only apply to those selling fewer than 200,000 EVs in the U.S.

      Trump's proposal also intends to eliminate the used EV tax credit by the end of 2025. Notably, as the bill progresses through the Senate, modifications will likely be necessary before approval.

      Continued Cuts to the EV Credit

      The recently proposed bill from the Republican Senate Finance Committee also suggests ending the $7,500 credit for leased vehicles, which currently has no restrictions based on the origin of the vehicle's components or where an EV is manufactured. However, leased EVs adhering to North American content standards would still qualify for the credit, but only for 180 days following the bill's approval, according to reports from Reuters.

      Regardless of the approval timeline, it is evident that Republicans are targeting EV subsidies, so if you're looking to purchase or lease a new or used EV and benefit from a substantial tax credit, you likely have only a few months left to do so.