With federal EV tax credits ending as of September 30, 2025, the market faces a temporary slowdown in sales growth, potential price cuts, and increased reliance on manufacturer incentives to boost demand. While new and used EV sales may drop, many buyers may pivot to leasing to secure, or manufacturers will absorb the cost difference to maintain sales.
Sales of battery-electric vehicles could be about 40% lower in 2030 without the credits than what we'd see with them, according to one analysis by Princeton University's Zero Lab. Some US states still have their own incentive programs for people looking to buy electric vehicles.
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 September 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.
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.
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.
Reconfirmation of the commitment to end the sale of new purely ICE cars by 2030, with all new cars and vans being fully zero emission by 2035. A technology definition to permit the sale of hybrid electric vehicles ( HEVs ) and plug-in hybrid vehicles ( PHEVs ) post-2030, alongside zero emission vehicles ( ZEVs ).
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.
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.
Congress passed legislation that will end federal EV tax credits as of September 30, 2025. Buyers can still qualify for these federal incentives if they meet requirements before the termination date. EVs may still offer long-term financial benefits even without federal tax credits.
Premium Increases
As a result, premiums will increase significantly starting on Jan. 1, 2026. What this means is that premium tax credits are still available for 2026, but many people could receive less than they did before.
California Gov. Gavin Newsom, a Democrat thought to be likely 2028 presidential contender, announced a plan on Friday, Jan. 9 to spend $200 million in his state's money to offer an "on the hood" electric vehicle tax credit that would offer instant discounts to EVs in the state that is home to most plug-in models in the ...
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.
A recent tax law ("One Big Beautiful Bill") introduced a new $6,000 bonus deduction for Americans aged 65 and older, available for tax years 2025-2028, reducing taxable income, not the tax itself, with income phase-outs starting at $75,000 MAGI for singles and $150,000 for joint filers. This deduction adds to existing standard deductions, provides up to $12,000 for couples, and requires a Social Security number and filing status other than Married Filing Separately.
Among the most promising options for replacing electric cars are hydrogen-based and biofuel-based propulsion systems. Both approaches have unique features and significant benefits that could transform the future of mobility, but they also have drawbacks.
Yes, you can likely give your daughter $50,000 tax-free by using your annual gift exclusion and lifetime exemption, but you'll need to file Form 709 with the IRS to report the gift exceeding the annual limit ($19,000 in 2024/2025). The $50,000 gift reduces your large lifetime exemption (over $13 million in 2024/2025), meaning you won't pay tax on it unless your total lifetime gifts exceed that huge amount; your daughter never pays gift tax on the money.
Step-Up in Basis for Inherited Assets
One tax advantage of leaving assets after death is the step-up in basis. This provision allows heirs to inherit assets at their fair market value at the time of death, effectively resetting the capital gains tax to zero for any appreciation during the decedent's lifetime.