President Donald Trump's controversial One Big, Beautiful Bill has passed the House of Representatives with a 218-214 vote, with Trump expected to sign the bill into law on July 4. Here's what it means for EVs in the U.S.
What Happened: "It is obvious that the future of transportation is electric; this bill forfeits America's role in that future to China," The Electrification Coalition, a pro-EV group, said on Thursday, according to Reuters.
The tax bill eliminates the federal EV credit, worth $7,500, on all purchases of new electric vehicles, as well as a $4,000 credit on used EVs, which could be a blow to the growing EV sector in the country.
The bill also eliminates the civil fines imposed on corporations for not meeting the Corporate Average Fuel Economy (CAFE) norms and repeals the proposed $250 annual fee on EV owners.
Elsewhere, the bill also eliminates the proposal that the U.S. Postal Service would need to overhaul its delivery fleet and sell off all the Ford Motor Co. F transit EV vans it currently uses.
Why It Matters: The tax bill has been a point of contention between Trump and his allies, most significantly, Tesla Inc. TSLA CEO Elon Musk. Musk had launched a scathing attack on Trump over the budget, even claiming that if the bill were to pass, he would set up a new political party.
Trump responded by saying that Musk would need to "close up shop" and return to South Africa if it weren't for the U.S. government subsidies, further adding to the feud between the two.
The bill is in line with the Trump administration's anti-EV stance as the president had recently signed a resolution to overturn California's EV mandate, which aimed to phase out ICE-powered vehicles by 2035.
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