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The measure, passed by the House, would roll back incentives for people to buy electric vehicles and for automakers to make them in the U.S.
May 23, 2025Updated 9:28 a.m. ET
A tax and policy bill passed by House Republicans on Thursday would deal a serious blow to electric vehicles by repealing many of the subsidies that have been critical to the growth of the technology.
If passed by the Senate and signed into law by President Trump, the bill would sharply slow the sales and production of battery-powered cars and trucks in the United States and set back the global effort to address climate change.
The measure would gut subsidies for battery manufacturing, incentives for purchases of electric vehicles by individuals and businesses, and money for charging stations that Congress passed during the Biden administration. And it would impose a new annual fee on owners of electric cars and trucks.
Republican leaders have said the subsidies they want to repeal were ill conceived and largely benefited affluent car buyers. They aim to use the money the government saves on the incentives to cut taxes, primarily for high-income households and businesses.
Electric vehicles will not disappear from dealerships if the bill becomes law, analysts said, but they are likely to become a lot more expensive than they would have otherwise been. Some automakers may decide to delay plans for new car and battery factories.
The rollback of sales incentives will leave the United States even further behind China and Europe, where electric vehicles make up a larger percentage of new car sales and are growing much faster. Most auto executives believe that electric vehicles will eventually displace cars with internal combustion engines.
