H.R. 312 — Restoring Vehicle Market Freedom Act of 2025

This section specifies that, except as otherwise expressly provided, all amendments and repeals in this Act are made to provisions of the Internal Revenue Code of 1986.

This section repeals the previously-owned clean vehicle tax credit (IRC §25E). (Thus, taxpayers may claim a tax credit of up to $4,000, or 30% of the sale price, for qualified previously-owned plug-in electric drive or fuel cell vehicles acquired on or before the date of enactment.)

This section repeals the alternative motor vehicle credit (IRC §30B), which provides a tax credit of up to $7,500 for qualified new plug-in electric drive motor vehicles (including fuel cell vehicles), and makes conforming amendments to IRC §§38, 1016, and 6501. The repeal applies to vehicles purchased after the date of enactment. (Thus, taxpayers may claim the credit only for eligible vehicles purchased before enactment.)

This section repeals the alternative fuel vehicle refueling property credit (IRC §30C), which provides a tax credit equal to 30% of qualified costs (up to $100,000) for installing or upgrading refueling property for clean fuel vehicles (e.g., electric vehicle chargers), and makes conforming amendments to related Internal Revenue Code provisions. (Thus, the credit is available only for property placed in service before the date of enactment.)

This section repeals the tax credit for new qualified plug-in electric drive motor vehicles (IRC § 30D)—which provides a credit of up to $7,500 per vehicle based on battery capacity, critical minerals sourcing, and other requirements—for vehicles acquired after the date of enactment and makes conforming amendments to various Internal Revenue Code provisions. (Thus, the credit remains available only for vehicles acquired on or before the date of enactment.)

This section repeals the tax credit for qualified commercial clean vehicles under IRC §45W (i.e., a credit of up to $7,500 for vehicles with a gross vehicle weight rating under 14,000 pounds or up to $40,000 for heavier vehicles). (Thus, businesses may claim the credit only for vehicles acquired on or before the date of enactment.)