Yes, the federal EV tax credits for new ($7,500) and used ($4,000) clean vehicles were discontinued for purchases after September 30, 2025, as part of a major 2025 tax bill signed by President Trump, ending them much sooner than the previously extended 2032 date. Buyers needed to finalize purchases and meet requirements by that deadline to claim the incentives, though some state/local offers may still exist, and some dealers offer lease deals.
Several of the most popular electric car models experienced steep sales drops in the fourth quarter of 2025, after setting records in the third quarter as car buyers rushed to take advantage of the $7,500 federal tax credit before it expired at the end of the September 2025.
The tax credit, passed by the Biden administration in 2022 to support EVs, is going away Wednesday as part of President Donald Trump's broad spending and tax bill.
Officially defined under Section 25D of the U.S. tax code, the 30% residential solar tax credit officially expires on December 31, 2025, with no phase-down or extension. To qualify, homeowners must have their systems fully installed and operational before the solar tax credit 2025 deadline.
As President Trump continues his second term, the future of America's solar incentives has taken a definitive turn. On July 4, 2025, the One Big Beautiful Bill (OBBB) was signed into law, officially ending the 25D federal solar tax credit for homeowners on December 31, 2025.
Under the federal One Big Beautiful Bill Act, the $7,500 federal tax credit for new EVs and a $4,000 credit for used EVs expired on September 30, 2025, leaving buyers without a previously significant incentive to purchase these zero-emission vehicles.
With the passage of the One Big Beautiful Bill in July of 2025, also known as the Working Families Tax Cut, energy tax credits are now set to expire after December 31, 2025.
Congress has passed legislation that terminates both the $7,500 tax credit for new EVs and the $4,000 credit for used EVs on September 30, 2025.
Trump's disastrous budget law is eliminating tax credits that cut the costs of solar power, electric vehicles and home efficiency upgrades.
The "25k EV tax credit" refers to the Used Clean Vehicle Credit (IRC 25E), offering up to $4,000 (or 30% of sale price, whichever is less) for pre-owned EVs/PHEVs sold for $25,000 or less by licensed dealers, with specific income limits and vehicle/buyer eligibility rules, though this credit has now expired for most purchases after September 30, 2025, under recent legislation, notes this Consumer Reports article and this CNN article.
Any savings you received would be in the form of a rebate or a reduced lease price. Since the Republican-led Congress has passed Trump's 2025 tax reform, clean energy credits, including the tax credit applicable to leased EVs, are being eliminated after September 30, 2025.
The new tax bill will end the $7500 tax credit on new EVs and the $4000 tax credit on used EVs.
If the individual tax cuts expire, taxpayers in all income groups would face higher and more complicated taxes. Machinery and equipment expensing is a key provision that, if allowed to expire, would especially harm capital-intensive industries like manufacturing.
The One, Big, Beautiful Bill Act significantly affects federal taxes, credits and deductions. It was signed into law on July 4, 2025, as Public Law 119-21, and takes effect in 2025.
If you don't file your tax return by the October 15 extension deadline, the IRS charges a failure-to-file penalty of 5% per month (up to 25%) on unpaid taxes, plus a failure-to-pay penalty (0.5% per month), and interest on the total amount due, potentially leading to significant costs, though you can request penalty abatement for reasonable cause, and if you're owed a refund, you generally won't face penalties but risk losing your refund if you wait too long (usually over 3 years).
The federal electric vehicle (EV) tax credit will officially end for all automakers on September 30, 2025, following the enactment of new legislation that replaces the previous system, under which credits were phased out individually after each manufacturer sold 200,000 qualifying EVs.
Yes, in 2024, each parent could gift $18,000 to a child (totaling $36,000 per child for the couple) without tax implications, and for 2025, that amount increased to $19,000 per parent ($38,000 per child) because the annual gift tax exclusion is adjusted for inflation, requiring separate checks for each parent to utilize the full amount, according to TurboTax, Yahoo Finance, Guardian Life, IRS (.gov), and Mercer Advisors.
Update: The New Clean Vehicle Credit, Previously-Owned Clean Vehicle Credit, and Qualified Commercial Clean Vehicle Credit are not available for vehicles acquired after Sept. 30, 2025. The vehicle must be placed in service for you to claim the credit.
Yes, many individual provisions of the Trump-era Tax Cuts and Jobs Act (TCJA) from 2017 are set to expire at the end of 2025, reverting tax law to pre-2017 levels unless Congress acts, with key changes including the standard deduction, SALT deduction cap, and estate tax rules set to change, although legislation like the "One Big Beautiful Bill Act" (OBBBA) has since extended some of these cuts into the future, changing the original expiration cliff.
The Trump administration issued an executive order on July 7, 2025, titled Ending Market‑Distorting Subsidies for Unreliable, Foreign‑Controlled Energy Sources, aimed at accelerating implementation of the recently enacted One Big Beautiful Bill Act (OBBBA).