How Are EVs Affected By the Big Beautiful Bill?
If you’re looking for a good deal on an EV, this is your last chance. And at the end of this video, I’ll go over why this tax credit repeal may backfire. Electric vehicle tax breaks will expire on September 30th as big, beautiful bill passes. It’s the end of the line for US electric vehicle tax credits. Sweeping tax legislation approved by Congress means $7,500 tax credits for buying or leasing new electric vehicles will end on September 30th. There is your deadline. If you want to go electric and you haven’t yet, or if you’re looking at that new EV and it already exists, the time to get it is right now. Also, if you didn’t know, there’s a $4,000 credit on used EVs. I bought one, a Chevy Bolt with 4,800 miles in December of 2024 after the election knowing this was going to be a problem and this was bound to happen. In fact, I’ve made another video about it. If you’re in favor of this, don’t watch it. But here’s the big concern. If you are pro- America, as EVs secure a growing share of the global automotive market, it is obvious that the future of transportation is electric. This bill forfeits America’s role in that future to China. Why are there no small trucks in the US? Well, that’s the chicken tax. Why are there no Chinese EVs? There’s a 100% tariff. If the market was free right now, you would not consider an Americanmade, Americanbuilt electric vehicle. Period. You wouldn’t. You likely wouldn’t consider a gas vehicle if you don’t need a large truck because the BYYD Dolphin is like $13,000. And if there wasn’t a huge tariff, China would be selling it to us right now. Would it potentially create a surveillance problem? I don’t know. Engineers at Tesla have been vacating our privacy and sharing videos they thought were funny from Teslas for years now. They’ve even been caught. So, if you’re using Tik Tok, that thing in your pocket is way more dangerous than the cameras on a potential EV in your driveway would be. Either way, the $7,500 EV tax credit is being phased out. Now, I knew this was coming. Trump was not going to accept this bill not being passed. So, I bought in June an EV that I definitely wouldn’t be able to afford without the $7,500 tax credit. And now the question is, will manufacturers continue to build EVs? I don’t know, because separately, US automakers stand to receive significant benefits from the final bill that eliminates penalties for failing to meet CAFE standards. Okay, so CAFE is corporate average fuel economy and it’s a per vehicle penalty if your fleet doesn’t meet those standards. The standards still exist. The measurements still have to be taken, but the multiplier for the penalty in this bill is changed from whatever it was to zero. So now, if you want to build a Gen 1 Hummer, for example, that gets 12 m per gallon, that’s not going to cost you. It will cost Tesla, though, because those regulatory credits need to be offset somehow, and Tesla was selling those credits to those companies. So, if you think Elon Musk is mad because he has your best interest in mind, incorrect. His company stands to lose in a big way, maybe even more large, than when he saluted us on inauguration day. Cuz whether or not you think that was whatever it was, there’s a large group of people who didn’t like it. And if you really are in the market for an EV, you’re not the only one. The tax credit phase out in less than three months means EV sales will significantly jump via a pre-by since some consumers will move up purchases planned for later with sharp declines in the months to follow. So no matter what, Trump has made 2025 an excellent year for EVs. And as far as adoption, both the carrot and the stick are gone. The stick being emissions regulations and the carrot being those tax credits. Now, you may think if you are pro- oil, which help me understand that in the comments below, but you may think that these incentives going away are going to be good for you, but at the end of the day, the more options there are, the better it is for everyone. If more people switch back to gas, well, that would mean higher demand for gas. And higher demand for gas means higher gas prices. The big beautiful bill would cause energy bills to go up in every state. Here’s your 0%. Here’s your 29%. And whatever color your state may be, that’s how much energy is going to go up. It’s a fun chart if you like paying more money. Here’s the reality. Clean energy is the cheapest and easiest way to get power onto the grid. And if you thought EVs were the problem with the grid, you’re completely wrong and you’ve done no research because electricity nationwide is rising due in large part to AI data centers. Every time you type something into an AI something, a whole chunk of natural gas or coal or something unclean is being consumed just so you can find out the best set of recipes for your favorite meal that don’t contain whatever ingredient you don’t want it to contain. Between now and 2035, the US could see 57 to 72% less new clean energy capacity online than it would have with the tax credits in place. How is that good? You can put solar on your roof or in your yard and get 30% back which makes the payoff a short period of time like 5 years in a lot of cases. You can’t put a nuclear power plant in your backyard. You can’t put a coal burning power plant in your backyard. People had control over clean energy with tax credits. But now it’s going to be up to the big plants and rising power demand plus slower power plant construction is a recipe for higher electricity bills. We were supplementing the grid on our own by ourselves. And now we must rely on dirty, expensive, hard to get fossil fuels. So, no cafe standards. And the only good news here is if you own a hybrid, you’re not going to be penalized. And neither are we, at least at the federal level. Most of us are already being penalized in some other ways, including at the state level. But at least the $250 and $100 penalties for electric and hybrid vehicles are not included. So, I guess we lucked out there. And finally, if you really want to break the system, you can save thousands on a car by stacking Trump’s tax credits with Biden’s. Yes, until September 30th, this can be done. So, you can still get your $7,500 tax credit. And another stipulation in the bill says that up to $10,000 in interest of loans for new vehicles, as long as they’re less than $14,000 and assembled in the United States, can be claimed. So, I made a purchase in 2025 and I’ll be able to write off up to $10,000 in interest. The thing is, my loan is 0.9%. So, it really isn’t going to help me. And the standard deduction is now permanently extremely high. So, in order for you to write that off, you would have to itemize. And in order to itemize, you’d have to make a whole lot of money for that to make sense. I’ve been eligible to deduct my mortgage interest since I bought my house, but it’s never been enough for the standard deduction to not make sense. So, what’s the moral of the story here? Get on CarGurus, select electric, and find some stuff because this kind of stuff, this MSRP, this actual price, this this $10,000 is going to go away. Now, what’s the good news? I think since Elon was part of the government, he probably saw this coming regardless of his adamant disdain for it. Tesla has announced it will sell a basic entry-level EV that costs less. Can we trust them to do that? They’ve been saying that since, I don’t know, master plan part two, and there could be more than one. Also, the Nissan Leaf is returning. It could be affordable. We don’t know yet. You can find out literally anything you want about it except for the price, but it will be competitive. You know, 10 to 80% in 35 minutes, 300 mi of range. These are things we could never say about the Leaf before, and that’s cool. So, if you don’t need all-wheel drive, this could be nice. But don’t expect the first one to be the cheap one. And if you’re looking at the Rivian R2, just understand this price is completely gone. There is no way that Riven can now afford to sell you an R2 for this price cuz remember manufacturers also get tax credits and those are gone too. And I can promise you that this number had those baked in as well as your credit. And of course, an EV critic will have to become a new type of EV critic because if manufacturers decide to sell fewer EVs, that means the values are going to shoot up. If you have an EV currently and it’s a desirable model, or maybe there aren’t very many, or honestly, it’s just a good deal to buy used, there’s a really good chance that your resale value won’t go down anywhere near as much as EVs have gone down in the past few years. Now, of course, the whole point of the $7,500 tax credit was to reduce the value of your EV so more people could enter the market. The cheaper something is, the more diverse the group of people that can buy it. So, for those of us that own EVs, you may not get a $7,500 credit, but you might get a significant amount more on your trade for your next one. And I guess we’ll leave it at that for now. Let me know your thoughts in the comments below. Join Patreon or become a YouTube member for early access to videos and subscribe for more. We’ll see you on the next one. Hey, smash the like button. Thank you. [Music]
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