GOP Tax Bill Targets EV and Green Energy Credits for Repeal by 2025

House Republicans are advancing a tax package that would eliminate key clean energy tax credits, including those for electric vehicles (EVs) and home energy-efficiency improvements, potentially forcing consumers to act quickly to claim the benefits before they expire.

The proposed legislation would terminate EV tax credits and home energy-related incentives after 2025, cutting short provisions introduced under the Biden administration’s Inflation Reduction Act, which had extended them through 2032.

Cars parked in front of the company building | Source: Pexels

“Based on the existing proposed language, if you’ve been considering an EV or planning to get one, now is the time to do it,” said Alexia Melendez Martineau, senior policy manager at Plug In America.

Currently, buyers can claim up to $7,500 in tax credits for new EVs and $4,000 for used EVs. The credits are also transferable at the point of sale. Under the House proposal, only buyers of EVs from automakers that have sold fewer than 200,000 vehicles would qualify for a one-year extension through 2026, excluding companies like Tesla, GM, and Toyota.

Home energy-efficiency credits targeted for repeal include:

The 25C credit, offering up to 30% off upgrades like insulation, windows, and heat pumps (maximum $3,200 annually).

The 25D credit, providing 30% off projects like solar panel installation with no annual cap.

Blue Solar Panel | Source: Pexels

The House bill, if unchanged, would raise $707 billion over a decade by repealing the climate incentives, though internal Republican dissent and Senate approval remain obstacles to final passage.