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    Home » House Tax Bill Targets Current EV Owners With New $250 Annual Fee
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    House Tax Bill Targets Current EV Owners With New $250 Annual Fee

    agnel330By agnel330June 5, 2025No Comments6 Mins Read0 Views
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    House Tax Bill Targets Current EV Owners With New 0 Annual Fee
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    If you already own an electric vehicle, you are not alone – more than 3.5 million people in the United States have registered EVS, about 300,000 new people have been sold in the first quarter of 2025, as reported by Kelly Blue Book and Cox Automotive.

    But now, the proposed mega law, known as a large beautiful bill act from Republican in the US House of Representatives, may soon hit your wallet with a new annual federal fee to raise more than $ 800 million per year for the Highway Trust Fund.

    MPs say fees are required as more drivers opt for electric vehicles and gas tax revenue shrinks.

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    Regarding the proposal, House Transportation Committee Chairman Sam Graws said in a statement, “For a very long, EVS has operated on our country’s streets without paying in the system. Plain and simple, it’s a fairness issue, and it’s time when these roadways pay their share for road use.”

    Worth Noting: This idea is not new. Many states already charge annual fees for EV owners, usually from $ 100 (eg in California and Illinois) to $ 250 (eg, in New Jersey).

    Nevertheless, the proposed federal fee will match the highest in the US, and if approved, applies to all EV owners, whether they bought their vehicle whenever they bought. Hybrid vehicle owners will also face a new $ 100 annual fee under the bill.

    What should you know here?

    House GOP approves the new $ 250 EV fee: what does it mean

    A comprehensive tax and expenditure bill recently passed by the House (now under the US Senate) includes a new $ 250 annual federal fee for electric vehicles (EV) owners, whether they buy their car.

    As mentioned, the fee will be collected by the federal highway administration and is to ensure that EV drivers have to ensure to contribute to the highway trust funds. This fund is traditionally supported by gas taxes paid by drivers of internal combustion vehicles.

    However, consumer advocates states that the proposed $ 250 fee is actually more than three times that a specific new gas-powered car owner pays each year in federal gas taxes.

    The federal gas tax is 18.4 cents per gallon and has not changed since 1993. This means that most drivers pay less than $ 250 per year towards the maintenance of the highway.

    • If the $ 250 annual EV fee is approved, it applies as soon as the bill is signed.
    • However, when the owners start paying the fee, the accurate time depends on how quickly the Federal Highway administration finalizes the rules and sets the payment system.
    • The Bill directs the FHWA administrator to install the procedure to collect the fee after the law is implemented, so the owners may have a small phase-in period before they are required to pay.

    It is also important to note that the house version of Trump’s “Big Beautiful Bill” does not stop at the new EV fees. This includes two other major changes, which if approved, can affect the car market.

    Elimination of EV tax credit

    After the House Bill 2026, the federal tax credit for new electric vehicles will phase up to $ 7,500.

    • However, for most vehicles, the credit will actually disappear at the end of 2025, as it will only be for vehicle manufacturers who have sold less than 200,000 EVs.
    • Used the price of up to $ 4,000, up to $ 4,000 at the end of 2025, the lump sum will end.

    This pre-infection Reduction Act marks a return to the rules and can significantly affect the power for new EV buyers.

    New car loan interest deduction

    As Kiplinger has reported, the House GOP Bill introduces a temporary up-up cut for a captive car loan interest at $ 10,000 for loans made on eligible vehicles in 2025 through 2028.

    The deduction earns more than $ 149,000 for single filers and more than $ 249,000 joint filer, and only applies to loans for vehicles assembled in the United States.

    While the cuts can provide relief for some buyers, it is limited in period and scope, and it is not yet clear whether it will also apply to cars used.

    See for more information New GOP car loan cuts: Which vehicles and buyers qualify.

    Alon Musk Trump Bill Criticism and Tesla Stock

    Tesla CEO Elon Musk (formerly the government’s efficiency department, dogi, fame) has recently been important for the House GOP Tax Mega Recollection Bill, called it “disgusting disgusting”. The Congress budget office says that the bill will add $ 2.4 trillion to the deficit.

    On X (East Twitter), Musk wrote, “There is shame on those who voted for it: you know that you have done wrong.”

    In particular, the criticism of Musk comes when Tesla faces significant trade headwind.

    • Tesla’s stock has fallen nearly 18% year-on-year, and the company’s global sales have declined.
    • May data saw a decline of 36% year-on-year in Germany and a 15% decline in China.

    Despite his recent criticism, Musk has supported the Trump administration’s approach to the first EV policy.

    While Musk has warned that termination of EV tax credit may lead to a comprehensive EV market “destroyed”, he has also suggested earlier that Tesla may eventually make better changes than some contestants.

    What is further for EV owners and car buyers?

    If the bill becomes law, the current and future EV owners will have to face high annual costs and will lose access to federal procurement incentives. At the same time, only a few buyers will only benefit from the new car loan interest deduction if it is enacted.

    For now, while the American Senate House considers the GOP proposal, EV owners should prepare the possibility of new annual fee and the possible end of tax credit, which have made electric vehicles more cheap for some people in recent years.

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