5 Key Points About EVs From the 'One Big Beautiful Bill'

If you are interested in electric vehicles, the One Big Beautiful Bill (OBBB), signed by President Donald Trump, introduces significant changes. The legislation reduces various forms of US government support for vehicles with lower emissions. This development adds uncertainty for the American auto industry, which is experiencing significant changes.

According to a May survey by JD Power, nearly one in four US vehicle shoppers report being "very likely" to consider purchasing an EV, and 35 percent are "somewhat likely." These figures are consistent with last year. In response, experts have provided advice for consumers considering electric vehicles during this period.

Go Electric … Soon? Now?

The new bill ends the electric vehicle tax credit of up to $7,500, which was previously scheduled to continue until 2032. The credit is now set to expire on September 30. This federal program made some electric vehicles, such as the $43,000 Tesla Model 3, the $37,000 Chevy Equinox EV, and the $61,000 Hyundai Ioniq 9, more accessible to a wider range of buyers.

Until the end of September, certain new electric and plug-in hybrid vehicles remain eligible for the $7,500 tax credit. Used EVs are eligible for a $4,000 credit. Joseph Yoon, a consumer insights analyst at Edmunds, suggests that those currently in the market for an EV may wish to make a purchase soon.

There are several eligibility requirements for these tax credits. Not all vehicles or buyers qualify. Eligibility depends on factors such as the manufacturer's price, the location of assembly, and the origin of battery components. Income limits also apply: buyers cannot make more than $300,000 per year if married and filing jointly, $225,000 if head of household, or $150,000 for others.

After the tax credit window closes, it is possible that US buyers may still find favorable pricing on electric vehicles. Following recent increases in vehicle and parts tariffs, some manufacturers reduced prices. For example, Ford and Stellantis offered "employee pricing" to all buyers, and Nissan lowered prices on certain models.

Nick Nigro, founder of Atlas Public Policy, anticipates increased interest in EVs due to recent legislative attention. This could result in more competitive pricing in the coming months, so some consumers may consider waiting before making a purchase.

Think About EV Charging

The bill also ends a tax credit for at-home electric vehicle charging installation. This credit remains available until June 2026. It is limited to individuals living in low-income or non-urban areas and covers 30 percent of installation costs, up to $1,000.

Subtle Slashing

The bill also affects the broader US EV ecosystem. It does not eliminate tax credits for manufacturers introduced during the previous administration, which have helped reduce costs for automakers, battery producers, and critical mineral suppliers.

However, the legislation introduces stricter requirements for domestically manufactured components in the manufacturing credit program. According to Kathy Harris, director of the clean vehicles program at the Natural Resources Defense Council, these changes may make it more difficult for some parts of the EV supply chain to qualify for credits. She notes that this will present challenges for continued progress.