One of the policies that Republican President Donald Trump declared before his election was to withdraw tax credits for the purchase of electric vehicles in the United States. In favor of the ecological transition, many authorities in different countries have opted to make government aid available to citizens for the purchase of electric vehicles. In the United States – until Trump decides to eliminate it – they have tax benefits for citizens. They are offered an assistance from the IRS of $7,500 at the time of betting on clean energy with the purchase of an electric vehicle.
Ecological transition
The last few years have been marked, among other things, by the global trend towards an energy transition. This has not only been an issue for companies and their production, but also for private individuals. In the case of North American citizens, there has been a remarkable acceptance of the idea of acquiring electric vehicles. However, it is a very expensive purchase. It requires not only the initial investment of the purchase, but also the installation of a charging point at home. The vast majority of us want to do our bit in the fight against pollution, but clearly this option is not suitable for all budgets.
Trump says goodbye to benefits for EVs
Within his “One Big Beautiful Bill” proposal, Trump includes a series of cuts and new laws from which few areas escape. One of them is the cancellation of subsidies when buying an electric vehicle. This decision not only affects buyers, but also the brands and factories operating in the United States. Why would they want to expand in a country that does not favor the purchase of their product? According to Trump, this measure would become effective as soon as he was elected, but the truth is that the subsidies are still in place. He probably has some more urgent problems to deal with.
You are still on time (for now)
As of today, you can still enjoy a federal credit thanks to the Inflation Reduction Act. It applies to eligible electric vehicles, and the amount can reach $7,500. There is also another one for used cars, which goes up to $4,000. However, not all vehicles are eligible. There are very strict requirements as to which vehicles are eligible. If the vehicle is new, the buyer has to take into account two aspects. On the one hand, that it complies with assembly standards and the origin of the battery components. On the other hand, the use of critical minerals processed in the US or allied countries. If both factors are met, then the sum of $7,500 can be obtained.
Another aspect to consider is the selling price of the vehicle. The credit would only be valid for those that do not exceed $55,000. However, in the case of SUVs, pickup trucks or vans, it can go up to $80,000. The gross household income of the buyer is also very important. There are limits to ensure that this assistance is received by those who really need it. It is $150,000 for singles, $225,000 for families and $300,000 for married couples.
What will happen if this tax is eliminated?
According to President Trump, the moment the One Big Beautiful Bill is passed, it would take 180 days for those credits to disappear. It will be 90 days in the case of used vehicles. A ridiculously short period that gives no room for adaptation. Credits for vehicles manufactured outside the U.S. will be even worse off, eliminated altogether. That is why car companies are reluctant to continue operating on US soil. What about you? Are you planning to buy an electric car or have you lost the desire?