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.
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.
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.
Average new EV transaction price is roughly $6,000 higher than gas cars in recent 2025 data. Global average lithium‑ion battery pack prices fell 20% in 2024 alone, to about $115 per kWh. Average prices for 1–5 year‑old used EVs fell about 15% year‑over‑year, far faster than gas cars.
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.
Under current law for tax year 2025, a single adult without children or a non-custodial parent working full time, year-round at the federal minimum wage will be eligible for a meager EITC — $308. (Such an individual would receive a much larger EITC — near the maximum — if they had two children.)
Affordable Care Act (ACA) enhanced premium tax credits are set to expire at the end of this year. Enhanced premium tax credits were introduced in 2021 and later extended through the end of 2025 by the Inflation Reduction Act.
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.
Yes, EVs tend to depreciate more quickly than ICE vehicles, but this gap is closing, and is set to match their depreciation level over time. There are several factors which contribute to this depreciation which will be outlined throughout this guide.
By January 1, 2025, CEC must set standards for how charger operators notify customers about availability and accessibility of public EV charging infrastructure.
The new tax bill will end the $7500 tax credit on new EVs and the $4000 tax credit on 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.
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.
Under the OBBBA, the federal EV tax credit ends September 30, 2025. After that date, buyers will no longer be able to claim the tax credit of up to $7,500 on new EVs, $4,000 on used ones, or the $1,000 credit for a home charger.
As EVs get older, the batteries progressively degrade. It is expected that at around 75% of the battery's original capacity, it has reached the end of its life in an EV. In reality what this means is that if the car was sold with 400 km driving range, at the end of its useful life it could be down to around 300 km.
However, a recent AAA survey showed that EV interest in the United States is at its lowest point since 2019—the data showed that only 16 percent of Americans reported being “likely” or “very likely” to purchase an EV as their next car.
These important tax credits expired on Dec. 31, 2025. In July 2025, President Trump enacted H.R. 1 (The “One Big Beautiful Bill” Act), which did not extend Enhanced Premium Tax Credits. As a result, premiums will increase significantly starting on Jan. 1, 2026.
It has now been replaced by Universal Credit or Pension Credit. If you've received a migration notice letter telling you to claim Universal Credit or Pension Credit, read our guide Universal Credit Migration Notice to learn what to do next.