"Big, beautiful bill" ends tax breaks for electric vehicles. Here's what to know

illuminem summarises for you the essential news of the day. Read the full piece on CBS News or enjoy below:

🗞️ Driving the news: A new U.S. bill passed by Congress has ended federal tax incentives for electric vehicles (EVs)
• The bill, which comes into effect on September 30, 2025, removes the $7,500 tax credit for new EVs and the $4,000 credit for used ones, designed to make EVs more affordable
• While the incentives are ending, experts argue that EVs still offer long-term financial benefits, particularly in lower fuel and maintenance costs

🔭 The context: EV tax credits were originally introduced to support the transition to cleaner transportation
• However, with the passing of this new tax and spending bill, many lower- and middle-income buyers may find EVs increasingly out of reach
• Despite this, experts suggest that EVs remain a more affordable and environmentally friendly option when considering long-term savings on fuel and maintenance

🌍 Why it matters for the planet: While the removal of federal tax credits may slow EV adoption, the environmental benefits of electric vehicles remain significant
• EVs have been shown to generate fewer emissions over their lifetime than gasoline-powered cars, even in regions reliant on coal for electricity
• This continued push for EV adoption, even without immediate financial incentives, is essential for achieving long-term climate goals

⏭️ What's next: Consumers have until September 30, 2025, to purchase an EV with the federal tax credit
• Going forward, policymakers may need to reconsider alternative methods to incentivize EV purchases, especially to ensure access for low- and middle-income households
• Additionally, states with their own EV incentives may help bridge the affordability gap for many

💬 One quote: "They're just a really great way to reduce transportation energy cost burden." — Ingrid Malmgren, Senior Policy Director at Plug In America

📈 One stat: The average new EV in the U.S. costs about $9,000 more than the average new gasoline-powered car, and used EVs are typically $2,000 more expensive than their gas counterparts

See on illuminem's Data Hub™ the sustainability performance of key automakers involved in the EV market.

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