After months of stating the intention to remove clean-vehicle tax credits, Republican House members have passed a version of President Donald Trump’s “One Big Beautiful Bill Act” that could potentially decimate electric vehicle sales in America. If passed into law, the bill would cut subsidies for battery manufacturing and remove incentives for purchasing electrified vehicles.

Specifically, the bill would phase out the Clean Vehicle Credit, first put in place under President Barack Obama and expanded in the Biden administration through the Inflation Reduction Act. Currently, buyers of hybrid and electric cars can get $7500 off qualified new vehicles with restrictions based on vehicle price and household income.

The new bill would officially end the clean-vehicle credit program on December 31, 2026. In practice, though, the credit would be effectively killed for nearly all established automakers at the end of this year. That’s because the bill stipulates that for any automaker that has sold more than 200,000 qualifying vehicles, the program ends on December 31, 2025.

After They’re Gone
In addition to removing the clean-vehicle credits, the bill would add new registration fees for hybrid and electric vehicles as a stand-in for fuel taxes. Hybrid vehicles would become subject to a new $100 registration fee, while electric vehicles would add a $250 annual fee. Combined with the removal of clean-vehicle credits, the new registration fees would help to significantly raise the cost of electric vehicle ownership.