Republicans Target EV Incentives, Loan Programs In Sweeping Tax Reform Proposal

Chief among the proposed tax reform cuts is the repeal of EV tax credits—$7,500 for new vehicles and $4,000 for used ones—effective Dec 31. (Credit: AFP)

Republicans in the U.S. House of Representatives unveiled a sweeping tax reform proposal that would eliminate several climate-related incentives introduced under the Biden administration.

Chief among the proposed cuts is the repeal of the electric vehicle (EV) tax credits—$7,500 for new EVs and $4,000 for used models—effective from Dec. 31. Automakers that have not yet reached 200,000 EV sales would be allowed to retain the new-vehicle credit for one additional year.