Industry orgs: Budget bill’s electric vehicle tax credit rollback could hamper Tennessee momentum

Ford BlueOval City, photographed while under construction in April 2023. (Photo: John Partipilo)

Congress may be poised to roll back electric vehicle tax credits and institute new annual taxes on electric vehicle owners — moves that could spell trouble for electric vehicle manufacturers in Tennessee and across the country, according to industry organizations.

The U.S. House of Representatives narrowly passed a revised version of President Donald Trump’s budget reconciliation bill last week. The “One Big Beautiful Bill Act” slashes multiple tax credits available to consumers who purchase new, used and commercial electric vehicles (EVs). It also creates a new annual tax for owners of EVs ($250) and hybrid vehicles ($100), money meant to make up for a lack of owners’ lack of gas tax contrib