Donald Trump’s ‘Big Beautiful Bill’ Could Make These Electric Vehicles Much More Expensive For You
The US House of Representatives has passed President Donald Trump’s tax and spending bill, known as the “Big Beautiful Bill.” A key outcome of this legislation is the elimination of the $7,500 tax credit for new, US-made electric vehicles (EVs).
What Happened
The popular tax incentive is slated to be discontinued starting September 30th, making electric vehicles significantly more expensive for potential buyers. Some manufacturers have already begun adjusting their pricing strategies in anticipation.
Notably, Slate Auto, an EV startup backed by Jeff Bezos, recently removed the “under $20,000” projected price point for its upcoming electric pickup truck from their website, signaling an expected increase in vehicle costs.
According to the US Department of Energy, currently, 20 electric and hybrid vehicles benefit from the $7,500 tax credit. However, only certain models and trims qualify based on specific criteria such as model year and price caps, which are set at $80,000 for vans, SUVs, and pickups, and $55,000 for all other vehicles.
For instance, only the 2026 version of the Hyundai IONIQ 9 is eligible for the credit under existing rules. Additionally, the credit is only accessible to buyers with an adjusted gross income of $150,000 or less. The limit is extended to $300,000 for married couples filing jointly and $225,000 for heads of households.
A separate federal tax credit of up to $4,000 for used EVs and hybrids will also come to an end in September.
Currently, several electric vehicles qualify for the full $7,500 federal tax credit. Some of these include the Acura ZDX; Cadillac LYRIQ, OPTIQ, and VISTIQ; Chevrolet Blazer, Equinox, and Silverado; Chrysler Pacifica (hybrid); Ford F-150 Lightning; Genesis Electrified GV70; GMC Sierra; Honda Prologue; Hyundai IONIQ 5 and IONIQ 9; Jeep Wagoneer S; Kia EV6 and EV9; and Tesla Cybertruck, Model 3, Model X, and Model Y. Eligibility for this tax credit is contingent upon factors such as vehicle configuration, MSRP limits, battery sourcing, and assembly location.
Why It Matters
The discontinuation of this tax incentive represents a significant setback for the EV industry, which has relied on government subsidies to bolster sales. The removal of the $7,500 credit could potentially deter consumers from switching to electric vehicles due to increased costs, thereby slowing down the adoption of EVs. This change could also affect the global competitiveness of US-made electric vehicles.
The bill’s impact is particularly concerning for up-and-coming companies like Slate Auto, which are attempting to introduce more affordable EV options to the market. The elimination of the tax credit might compel these companies to revisit their pricing strategies and business operations to remain viable in a competitive industry.
