In a historic move that aligns with President Trump’s vision for a stronger America, the Senate has passed a sprawling tax-and-spending bill that will eliminate the $7,500 tax credit for electric vehicles by the end of September.
Republicans are racing to get the bill to Trump’s desk by July 4, which would strike down one of Biden’s signature climate policies.
The Senate version of Trump’s bill passed with a razor-thin 51-50 vote, with Vice President JD Vance casting the tie-breaking vote.
This version ends the EV tax credits three months sooner than the House proposal, which would have terminated the incentive 180 days after being signed into law.
President Trump has set a clear Independence Day deadline for the bill’s passage, highlighting his administration’s commitment to swift action on campaign promises to dismantle wasteful government spending programs.
The soon-to-be-eliminated tax credits were part of Biden’s 2022 Inflation Reduction Act, which allowed consumers to claim up to $7,500 for new electric vehicles and up to $4,000 for used EVs priced under $25,000.
The credits were originally scheduled to last through December 31, 2032, but Trump’s bill amends IRS Section 30D(h) to end them for vehicles acquired after September 30 this year.
The Senate bill also eliminates the federal tax credit for commercial clean vehicles, which had provided a maximum credit of $40,000.
Senator Bernie Moreno pointed out the hypocrisy in Democrat claims about who benefits from tax cuts.
“The Democrats gave that billionaire a check for $7,500. They say we’re helping billionaires, when they’re giving $7,500 checks to people who lease these cars. Sick,” Moreno said.
This highlights how wealthy Americans have exploited a loophole that allows them to receive the tax benefit when leasing expensive electric vehicles.
The elimination of these credits represents a victory for everyday taxpayers who have been footing the bill for luxury purchases.
Moreover, the American Energy Alliance has been a strong supporter of ending the EV tax credits, viewing them as an unnecessary burden on hardworking American taxpayers.
The market reality shows Americans are not embracing electric vehicles despite years of government incentives.
In the first quarter of 2025, only 9.6% of new U.S. light-duty vehicle sales were electric, representing a decrease from the previous quarter.
EVs currently make up just 2.1% of all vehicles in operation in the U.S., indicating that Americans continue to prefer traditional gasoline vehicles despite substantial government subsidies.
The Senate bill also proposes cuts to tax credits for wind and solar projects, further dismantling the green energy agenda pushed by the previous administration.
Additionally, the legislation may impose new taxes on companies that use Chinese components, which reinforces President Trump’s commitment to reducing economic dependence on China and promoting American manufacturing.
The Senate bill may also eliminate fees on automakers that do not comply with fuel economy rules, potentially weakening regulations that have burdened the American auto industry.
The bill now heads to the House, where it must be reconciled with their version before reaching President Trump’s desk.
Despite outcry from EV manufacturers and environmental groups, Republicans remain committed to ending what they see as wasteful subsidies.
The transportation sector is the largest contributor to U.S. greenhouse gas emissions, accounting for approximately 28%.
While opposition claims this bill hinders progress, true patriots recognize its potential to reduce unnecessary spending while fostering a broader market renaissance.
Under Trump’s leadership, these calculated measures are not only timely but represent a commendable commitment to America’s economic resilience.
