President Trump’s tax and spending bill will end a program offering up to $7,500 for Americans who buy electric cars. But you still have a little more time to claim the tax credit. On this episode of Possibly, we break down what potential car buyers need to know.
Megan Hall: Welcome to Possibly, where we take on huge problems like the future of our planet and break them down into small questions with unexpected answers. I’m Megan Hall.
Back in July, President Trump signed a major tax bill into law, you’ve probably heard it called ‘The Big Beautiful Bill.’ The legislation had a lot in it, So this month on Possibly, Nat Hardy is breaking down what the law means for climate change.
Nat Hardy: Hi Megan! Good to be back.
Megan Hall: So on our last episode you told us what the law means for how we make electricity, and the answer was big cuts to renewable energy, right?
Nat Hardy: That’s right. It basically singled out wind and solar, and rolled back all of the Biden administration’s tax credits for those renewable projects.
Megan Hall: Okay, So what are we talking about today?
Nat Hardy: Today I wanted to talk about what the Big Beautiful Bill means for electric vehicles.
Megan Hall: Yeah, when I bought an electric car a few years ago, I got a nice tax credit.
Nat: Yeah, President Biden’s Inflation Reduction Act set aside big tax credits for electric cars and plug-in hybrids., up to $7,500 for a new car, and $4,000 for used ones. But the Big Beautiful Bill is getting rid of those tax credits.
Megan Hall: Are they gone right away?
Nat Hardy: You can still get the credit, but you’re running out of time. You have to purchase the car before September 30th of this year to claim the credit on your taxes.
Megan Hall: Oh wow that’s soon.
Nat Hardy: Yeah, the clock is ticking.
Larry Chretien: If you’ve been thinking about buying an electric car, this is the best time to go get one.
Nat Hardy: That’s Larry Chretien, the executive director of the Green Energy Consumers Alliance, a clean energy advocacy group working in Rhode Island and Massachusetts. Larry thinks the Big Bill is bad news for getting people to buy electric cars, but it’s not the end of the story.
Larry Chretien: EVs are still at the point where the consumer rebate is helpful. The gap between the cost of an electric car and its comparable gasoline powered car is closing. So this is gonna slow down adoption. But EVs are better cars. If you talk to anyone who’s had one, they’re gonna tell you that.
Nat Hardy: Megan what do you think?
Megan Hall: I love my electric car! I’m never going back!
Nat Hardy: I think that’s a common sentiment. And Larry says the car market seems to be moving towards EVs, regardless of the tax credit.
Larry Chretien: The car makers are still gonna produce them because if they don’t, they will not be able to sell cars in a lot of countries that are all in.
Nat Hardy: The number of electric cars globally has tripled over the last three years. In Norway, more than 90% of all new vehicle sales are electric. And China is becoming a big player in EV manufacturing and purchasing. This June, more than half of all the cars sold in China were electric.
Larry Chretien: Many countries in Europe are going heavily for EVs, and if they can’t buy an American car, they’ll buy a Chinese one.
Nat Hardy: EVs are about the same price as gas cars in China and lots of other countries. So Larry and other experts argue that the Big Beautiful Bill puts American manufacturers at a disadvantage when it comes to selling electric cars.
Megan Hall: But it sounds like Larry doesn’t think this is the end for EVs in the US. The market is moving there one way or another?
Nat Hardy: Exactly. Americans lose out on this extra bonus for buying an electric car, but it’s definitely not the end.
Larry Chretien Try to take advantage of the tax credit. It’s $7,500. That’s great. But even then, I have a feeling that you’ll be able to get affordable EVs, you know, next year. We’re not going, you know, to zero electric cars. It’s bad that we’re gonna lose these tax credits, but there’ll still be availability to some extent.
Megan Hall: Great, and just one more time, what’s the last day to get that tax credit?
Nat Hardy: You’ve got to drive your EV off the lot by September 30th, 2025.
Megan Hall: Great, Thanks Nat.
That’s it for today. You can find more information, or ask a question about the way your choices affect our planet, at ask possibly dot org. You can also subscribe to Possibly wherever you get your podcasts or follow us on social media at “ask possibly”
Possibly is a co-production of Brown University’s Institute for Environment and Society, Brown’s Climate Solutions Initiative, and the Public’s Radio.
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