Senate Move to End EV Incentives Jeopardizes U.S. Jobs, Economic and National Security

Contact: Noah Barnes, Electrification Coalition
noah@electrification.org, (202) 461-2371

WASHINGTON—Late Friday, the Senate released the latest legislative text for the budget reconciliation bill. The proposed Senate text will: 

  • terminate the clean vehicle tax credit (30D) by September 30, 2025; 
  • terminate the used electric vehicle credit (25E) by September 30, 2025; 
  • terminate the qualified commercial clean vehicle credit by September 30, 2025; and 
  • terminate the alternative fuel vehicle refueling property credit by June 30, 2026.

Electrification Coalition Executive Director Ben Prochazka released the following statement:

“The Electrification Coalition is deeply disappointed by the Senate’s latest proposed text that will eliminate federal electric vehicle (EV) tax credits through the recent budget reconciliation bill. These tax provisions are supporting billions of dollars of private investment in communities across the country. This action represents a profound setback for U.S. economic competitiveness, national security, and the future of American transportation. 

“In the House-passed version of the bill and the Senate Finance Committee’s text, the credits were significantly cut, but the new proposed bill text would result in an even worse outcome for the electric vehicle industry.

“By dismantling these critical incentives, the Senate has taken a sledgehammer to the U.S. EV industry at a time when global competition—particularly from China—is intensifying. Federal EV tax credits have been instrumental in catalyzing private investment, accelerating innovation, and creating hundreds of thousands of high-quality American jobs across the EV supply chain. Their removal threatens to stall this momentum and cede leadership in transportation electrification to foreign adversaries. 

“This bill would make it impossible to meet the president’s goal of American dominance in critical minerals that are essential to our national defense industry and rebuilding American mining and mineral processing capabilities. This leaves our national defense industry and military vulnerable to manipulation by our adversaries.

“The Senate must reject this short-sighted move and work toward policies that strengthen, rather than weaken, America’s position in the global transition to electric transportation.” 

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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

Amy Malaki

Amy Malaki is the head of policy and sustainability at SkyNRG and SkyNRG Americas, pioneering global leaders in sustainable aviation fuel production and supply. Prior to SkyNRG, Amy was the associate director for the transportation portfolio at the ClimateWorks Foundation where she developed philanthropic investment strategies to advance a sustainable, equitable and low-carbon mobility system. She also pioneered the organization’s international aviation decarbonization strategy. Prior to that she focused on Asia business development at Better Place, a Silicon Valley electric vehicle network startup. She has a B.A. in Chinese and China studies from the University of Washington and an M.A. in international policy studies (energy and environment) from Stanford University.