Alliance for Automotive Innovation President and CEO John Bozzella says various provisions of the Trump administration’s One Big Beautiful Bill Act will help and hurt manufacturers and their customers, singling out an unexpectedly rapid phaseout of the $7,500 federal tax credit for new EV buyers.

“We recognized Congress was likely to wind down the consumer EV credits (aka 30D and 45W) early,” writes Bozzella in a statement. “The accelerated phaseout to September 2025 will be extremely challenging to EV adoption and hurt consumer affordability, especially as manufacturers and dealers right-size automotive inventories.”

Bozzella did praise the bill’s advanced manufacturing production credit, a holdover from the prior administrations Inflation Reduction Act, and was relieved new federal registration fees of $250 and $150 for EVs and hybrids, respectively, were dropped from early drafts of the bill.

“Like I said, lots to like. Not perfect but given the auto industry’s outsized impact on the country’s economic and national security, we appreciate the inclusion of these policies,” Bozzella writes.

Read more at AAI