WASHINGTON — In a bold move, House Republicans have introduced legislation aimed at ending federal electric vehicle (EV) tax credits and repealing fuel efficiency standards designed to accelerate the shift toward zero-emission vehicles. The proposal, part of a sweeping tax reform package, was revealed ahead of a House Ways and Means Committee hearing scheduled for May 13.
If enacted, the legislation would eliminate the $7,500 tax credit for new EVs and the $4,000 credit for used EVs by December 31, except for automakers that have not yet reached the 200,000-vehicle sales cap for whom the credit would remain for one additional year.
Genevieve Cullen, president of the Electric Drive Transportation Association, sharply criticized the move, stating that slashing federal support for vehicle electrification would undermine America’s leadership in clean energy innovation and risk ceding a major competitive edge to China. She warned the changes would threaten U.S. manufacturing and thousands of American jobs.
Data from the U.S. Treasury shows that, in 2024 alone, more than $2 billion in point-of-sale EV rebates have been distributed to consumers.
While the proposal would keep a battery production tax credit for automakers and battery manufacturers, it introduces a new provision: beginning in 2027, EVs assembled with battery components made by certain Chinese companies, or under licensing agreements with Chinese firms, would be barred from receiving the credit. This could impact vehicles produced with Chinese battery technology licensed by American automakers such as Ford or Tesla.
Additionally, House Republicans are calling for the cancellation of a federal loan program supporting the manufacture of advanced technology vehicles. Any unused funding would be rescinded, and existing fuel economy and greenhouse gas emission regulations for 2027 and beyond would also be revoked. That portion of the legislation is set to be addressed by the House Energy and Commerce Committee.
Some of the largest federal loans finalized during President Biden’s administration include $9.63 billion for a Ford and SK On joint venture to build three battery plants in Tennessee and Kentucky; $7.54 billion for Stellantis and Samsung to establish two battery factories in Indiana; and $6.57 billion to Rivian for its planned Georgia facility focused on manufacturing smaller, more affordable EVs starting in 2028.
