Congress moves to kill EV tax credits, raising car prices for ordinary buyers

What it does

This bill repeals three federal tax credits for electric vehicles: the $7,500 credit for new EVs (Section 30D), the credit for used EVs (Section 25E), and the credit for commercial EVs (Section 45W). It also eliminates the tax credit for EV charging infrastructure. The bill takes effect 30 days after enactment. The primary beneficiaries are fossil-fuel vehicle manufacturers and oil companies; the primary losers are consumers who would have received tax credits and EV manufacturers.

Why we flagged it

The bill's sole operative purpose is to eliminate three federal tax incentives for electric vehicles and charging infrastructure. It contains no other substantive provisions beyond conforming amendments to remove cross-references.

What the text implies

• Repeal is retroactive to contracts signed before enactment (30-day window), potentially trapping consumers who negotiated EV purchases expecting the credit.
• Elimination of commercial EV credits (Section 45W) may slow fleet electrification for delivery, transit, and logistics companies, indirectly raising transportation costs.
• Removal of EV charging-infrastructure credit (Section 30C) may slow private investment in charging networks, creating a chicken-and-egg problem for EV adoption.
• The bill does not address fossil-fuel subsidies or credits, creating asymmetric tax treatment favoring conventional vehicles.

Section numbers refer to the bill text the analysis read — linked under Primary records below.

Who it affects

Ordinary consumers lose access to tax credits worth thousands of dollars per vehicle purchase, making EVs more expensive relative to gas vehicles. The bill shifts purchasing incentives away from cleaner technology toward fossil-fuel vehicles, increasing long-term climate and air-quality costs borne by the public.

Who stands to gain

• fossil-fuel vehicle manufacturers
• petroleum refiners and distributors
• internal-combustion engine suppliers
• oil and gas companies

Named in the bill

Internal Revenue Code of 1986, Section 30D (new clean vehicle credit), Section 25E (used clean vehicle credit), Section 45W (commercial clean vehicle credit), Section 30C (alternative fuel vehicle refueling property credit), EV manufacturers, Charging infrastructure providers

Where it stands

14 cosponsors: 14 Republicans.

• Feb 12, 2025 — Introduced · Congress.gov: “Introduced in Senate”
• Feb 12, 2025 — Referred to Senate Committee on Finance · Congress.gov: “Read twice and referred to the Committee on Finance”

Dates and quoted wording are Congress.gov's action record; the timeline shows status changes, not every procedural step.

Money around this bill

3 lobbying clients named this bill on 5 disclosure filings across 2 quarters, Dec 2025 to Jun 2026. Those filings disclosed $1,290,000 in lobbying spend. A filing names 33 bills on average, so that figure is what each filing reported, not a share belonging to this bill.

More lobbying clients named this bill than 61% of bills with at least one filing.

John Barrasso, the sponsor, reported $408,500 in PAC receipts in the 2026 cycle.

• Case New Holland Industrial Inc — $680,000 on 2 filings
• Syensqo USA LLC — $420,000 on 1 filing
• American Lung Association — $190,000 on 2 filings

Lobbying Disclosure Act filings through Jul 20, 2026. A filing shows who paid to lobby on a bill it names, not what changed.