For years, the United States has offered tax benefits to those who buy an electric car. These credits have helped drive the transition toward cleaner mobility.
But that reality could change soon. The Senate has given the green light to Donald Trump's new bill, called "One Big Beautiful Bill." The impact would be enormous.
Trump's plan against green subsidies
The bill, approved with the tie-breaking vote of Vice President J.D. Vance, seeks to cut several public expenditures. Among them is the elimination of incentives for electric vehicles.
These subsidies were established in the Inflation Reduction Act. They include $7,500 when buying a new electric car and $4,000 if buying a used one. If the House of Representatives also approves the measure, both will disappear on September 30, 2025.
It's a decision that has caused concern. Experts from MIT and the University of Michigan insist that these credits have been key to reducing emissions. They not only make electric cars more accessible, but also help fight climate change.
What will consumers lose?
Electric vehicle prices have dropped in recent years. Still, they're more expensive than gasoline-powered ones. In May 2025, a new electric car cost an average of $57,700, while a gasoline car was around $48,100.
Even used ones show differences: $36,000 versus $34,000, which is why subsidies are essential for more people to choose clean alternatives. Researchers from Michigan state that without those credits, it will be harder for electric vehicles to become competitive. That would delay their mass adoption and their environmental benefits.
The planet
Transportation is the most polluting sector in the U.S., responsible for 28% of emissions according to the EPA. Reducing its impact is key to meeting the country's climate goals. Electric vehicles don't emit exhaust gases. Although their manufacturing and charging also generate emissions, MIT studies conclude that they're "clearly better for the climate."
That's why these incentives were created. It wasn't just about selling more cars, but about transforming the energy model and reducing dependence on fossil fuels.
Time is running out
According to Ingrid Malmgren, an expert in electric mobility, this will be "the summer of the electric car." Many will try to buy before the subsidies disappear. Her advice is clear: take advantage of the tax credit at the time of purchase, not when filing taxes.
The benefit can make the difference. The future of electric cars in the U.S. is at stake. The Big Beautiful Bill wants to roll back years of progress. If it's approved, it will do so starting September 30 of this year 2025.