Urgent: Federal EV Tax Credits Expire September 30 – Act Now!
Urgent: Federal EV Tax Credits Expire September 30 – Act Now!
Consumers considering an electric vehicle purchase face a critical deadline: the popular $7,500 federal tax credit for new EVs will officially end on September 30, 2025. This abrupt termination comes as a direct result of President Donald Trump’s recently passed “One Big Beautiful Bill,” which includes sweeping changes to clean energy incentives.
With less than three months remaining until the September 30 deadline, prospective EV buyers must act quickly to secure the $7,500 credit for new vehicles. The smaller $4,000 credit for used EVs will also disappear on the same date. While initial rumors suggested a six-month grace period, the final legislation significantly accelerated the timeline.
The impact of the new law extends beyond just electric vehicles. The 30% federal tax credit for rooftop solar installations is also slated to end on December 31, 2025, alongside incentives for geothermal heat pumps and other home energy devices, signaling a broader rollback of clean energy support.
For automakers, the bill dismantles the regulatory framework that previously incentivized EV production. It effectively guts federal Corporate Average Fuel Economy (CAFE) standards by eliminating penalties for noncompliance. Additionally, Congress has revoked EPA waivers that allowed California and other states to enforce stricter emissions rules, including Zero Emission Vehicle (ZEV) mandates, thereby stripping states of a key tool to push for cleaner cars.
This means a significant weakening of financial incentives for manufacturers to produce and sell EVs, and for companies like Tesla, a key revenue stream from selling regulatory credits has vanished. For the average consumer, however, the message is clear and urgent: the era of federally subsidized electric vehicles is coming to an abrupt end. If you’re in the market for an EV, this is your last call to benefit from these significant tax breaks.
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