Yes, federal EV tax credits of up to $7,500 for new and $4,000 for used vehicles are set to end for vehicles purchased or acquired after September 30, 2025, following the passage of the "One Big Beautiful Bill" (or Working Families Tax Cut). This legislation marks a significant change, with most federal EV incentives expiring by year-end 2025.
Key Takeaways. The One Big Beautiful Bill passed in July of 2025 ended the federal EV credit for any vehicles purchased after September 30, 2025. The federal EV tax credit, worth up to $7,500, is a nonrefundable tax credit that has been an effective way to lower the cost of EV ownership for taxpayers.
For vehicles acquired on or before Sept. 30, 2025, if you buy a qualified used electric vehicle (EV) or fuel cell vehicle (FCV) from a licensed dealer for $25,000 or less, you may be eligible for a used clean vehicle tax credit.
Important 2026 update: the federal EV purchase tax credits for new and used EVs ended for vehicles acquired after September 30, 2025. California, local, and utility incentives (plus the federal charger credit—see below) are now the main savings opportunities.
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.
Major U.S. tax changes for 2025, largely from the One Big Beautiful Bill (OBBBA), include making lower individual tax rates permanent, increasing the SALT cap to $40,000, adding new deductions for seniors, tips, and car loan interest, expanding the Child Tax Credit to $2,200, making the 20% pass-through deduction permanent, and phasing out certain clean energy credits, with inflation adjustments also increasing standard deductions and retirement limits.
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. What this means is that premium tax credits are still available for 2026, but many people could receive less than they did before.
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.
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.
By January 1, 2025, CEC must set standards for how charger operators notify customers about availability and accessibility of public EV charging infrastructure.
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 electric vehicle (EV) opens in same window tax credits are officially coming to an end. 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.
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.
The One Big Beautiful Bill Act (OBBBA) made several updates to tax benefits related to car buyers. The Electric Vehicle Credit expires on September 30, 2025, meaning purchases made before this date may still qualify for up to $7,500 for new EVs, $4,000 for used EVs, and $40,000 for commercial EVs.
Home charging can make electric vehicles much cheaper to run, with savings of up to £1,400 a year on fuel and maintenance compared with petrol or diesel vehicles. Yet concerns about upfront costs, battery life, and charging convenience prevent many potential buyers from progressing to a test drive.
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.
But the end is in sight, as the government has declared that sales of petrol and diesel cars will end in 2030. Some car industry observers think this is ambitious, but either way, in a few years, there won't be many diesel cars on sale. They will survive beyond that, but by 2050, they could well be a rarity.
You won't be forced to buy an electric car (EV) overnight, but government regulations (like the EPA's emissions rules) and state mandates (like California's 2035 ban on new gas car sales) are pushing automakers to sell more EVs, effectively making them the primary new vehicle option in many places by the 2030s, though this is subject to political and industry changes, with debates ongoing about consumer choice and affordability.
Gasoline Car Phaseout In California
California's ACC II requires that all new passenger cars, trucks, and light duty vehicles sold in California be zero emissions by 2035.