Yes, President Donald Trump signed legislation in mid-2025, often called his "big beautiful bill," that ended the federal Electric Vehicle (EV) tax credits ($7,500 for new, $4,000 for used) for purchases after September 30, 2025, accelerating their expiration and removing eligibility for all manufacturers, which many saw as a major shift away from supporting EV adoption, per reports from Politico, Cars.com, and CNBC.
Federal EV tax credits are finished, thanks to Donald Trump and Tom Barrett. Lansing, Mich. – Despite their success driving the growth of America's electric vehicle manufacturing, including a 60% increase after the 2023 credits, today marks the end of federal tax credits for the purchase of new and used EVs.
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.
Yes, but only for vehicles acquired and placed in service by September 30, 2025, due to the "One Big Beautiful Bill" (OBBB) (OBBB) legislation, which ends the federal Clean Vehicle Credits for new, used, and commercial EVs after that date. To claim the credit, you must enter a binding contract and make a payment by the deadline, with potential for delivery and claiming in 2026.
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 standard deduction increased for 2025 and 2026, and a new temporary “bonus” deduction for adults 65 and older begins in 2025. The child tax credit increased to $2,200 for the 2025 and 2026 tax years; retirement plan contribution limits for IRAs and 401(k)s also increased for 2026.
The One Big Beautiful Bill Act (OBBBA) or the Big Beautiful Bill (P.L. 119-21), is a U.S. federal statute passed by the 119th United States Congress containing tax and spending policies that form the core of President Donald Trump's second-term agenda. The bill was signed into law by Trump on July 4, 2025.
It's certainly worth watching what's going to happen now that the Canadian federal government has suddenly withdrawn all EV rebates across the board. The federal department Transport Canada says this is not a policy shift, but rather that all funds earmarked for rebates were allocated earlier than expected.
The $7,500 tax credit for new EVs and the $4,000 credit for used EVs will vanish after September 30, 2025 – a full three months earlier than the House originally planned. And it gets more aggressive: leased EVs from non-U.S. automakers lose their credits immediately. The EV charger tax credit also ends in June 2026.
California is gearing up to plug a major hole in the nation's electric-vehicle landscape. With the federal $7,500 EV tax credit wiped out by President Donald Trump and Congress late last year, Gov. Gavin Newsom is moving to deploy state dollars to keep electric car sales from losing momentum.
Despite that growth, Trump's tariffs still negatively impacted the industry, according to the Solar Energy Industries Association (SEIA): Tariff increases led to 62,000 fewer solar jobs. Installation prices for homeowners increased. $19 billion in new private sector solar investment was lost.
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.
President-elect Donald Trump campaigned on lowering the US corporate income tax rate to 15 percent. He made the same request in 2017 when Republicans passed their tax cuts, but Congress only cut the federal rate to 21 percent—down from the worldwide high of 35 percent.
April 10, 2025, the House adopted the Senate's amended version of the budget resolution, which allows $5.3 trillion in deficit-financed tax cuts (the combination of $3.8 trillion of tax cuts assumed to be “costless” under a current policy baseline plus $1.5 trillion in additional deficits permitted), deficit increases ...
No Tax on Overtime is a provision that was included in a larger tax reform bill that passed in July 2025. It allows certain workers to deduct up to $12,500 in qualified overtime compensation from their taxable income on their federal income tax return. Joint filers can deduct up to $25,000.
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.
The Congressional Budget Office (CBO) estimated in 2018 that the 2017 law would cost $1.9 trillion over ten years, and recent estimates show that making the law's temporary individual income and estate tax cuts permanent would cost roughly another $4.2 trillion through 2035.
The 2025 Federal Tax Debate
Much like the 2017 tax law, the new law favors the richest taxpayers. More than 70 percent of the net tax cuts will go to the richest fifth of Americans in 2026, only 10 percent will go to the middle fifth of Americans, and less than 1 percent will go to the poorest fifth.
The federal tax credit of up to $7,500 for qualifying new EVs is set to expire September 30, 2025. Buyers must complete a binding purchase agreement with a down payment before that date.
Many used Teslas retain their advanced technology and features, making them a great value. Additionally, purchasing a used Tesla may allow you to access models that are no longer in production, such as older versions of the Model X or Model 3.
In 2019, when a previous version of the EV tax credit was phased out for Tesla and General Motors because both hit a prescribed sales target, those two automakers responded by cutting prices. EV sales have been growing steadily for years, and at a much faster pace than traditional gas-powered cars.