Contact: Noah Barnes, Electrification Coalition
noah@electrification.org; (202) 461-2371
WASHINGTON—In a profound blow to U.S. economic competitiveness, advanced manufacturing, national security, and transportation electrification, the Senate has voted to adopt its version of the budget reconciliation bill, which, if passed by the House, would eliminate several federal EV tax credits.
The bill passed by the Senate today pulls the rug out from under more than $157 billion in manufacturing investments catalyzed by the EV tax incentives passed just three years ago. This bill jeopardizes hundreds of thousands of American manufacturing jobs, ensures U.S. advanced manufacturing continues to trail China, and delays the deployment of more affordable and efficient electric transportation, all on a faster timeline than the version of the bill passed by the House.
The Senate bill:
- terminates the clean vehicle tax credit (30D) by September 30, 2025;
- terminates the used electric vehicle credit (25E) by September 30, 2025;
- terminates the qualified commercial clean vehicle credit by September 30, 2025;
- terminates the alternative fuel vehicle refueling property credit by June 30, 2026;
- rescinds unobligated funding for the Clean Heavy-Duty Vehicle and the Diesel Emissions Reduction Act, among several other critical advanced transportation programs; and
- cuts the penalty for non-compliance of the Corporate Average Fuel Economy (CAFE) standards to $0.
Electrification Coalition Vice President of Policy Anne Blair issued the following statement:
“The Senate’s sledgehammer approach to EV tax credits and other advanced transportation programs will hobble not just the EV industry, but American manufacturing in its entirety. As competition between China and the United States ramps up in industries from transportation to defense, advanced auto manufacturing has served as the focal point for developing U.S. critical mineral supply chains and manufacturing expertise. Eliminating the tax credits driving much of the nation’s manufacturing investment at this critical juncture would effectively wave the white flag of defeat, ceding control over the future of transportation to China.
“This bill also undermines the Trump administration’s own national security directive to secure domestic access to critical minerals and build resilient supply chains that do not depend on China. Critical mineral mining and refining are only economical if industries exist to purchase their products, and the EV industry is the only one with the necessary scale to justify such investments. There is nothing big or beautiful about surrendering the future of the automotive and critical minerals industries to China.
“The House must reject this act against the interest of the American people and instead work toward policies that strengthen America’s position in global markets for transportation and other critical technologies.
“Later this week, House members will have one last opportunity to stand up for the historic manufacturing investments that have been made in their districts, protect the jobs of their constituents, and show the world that America can follow through on policies designed to dominate the industries of the future.”
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About the Electrification Coalition: The Electrification Coalition is a nonpartisan, nonprofit organization that promotes policies and actions to facilitate the widespread adoption of plug-in electric vehicles (EVs) on a mass scale to overcome the economic, public health and national security challenges that stem from America’s dependence on oil. ElectrificationCoalition.org