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.
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.
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.
EVs are expected to account for 9.1% of total vehicle sales in 2025, with projections indicating it could rise to 11.8% in 2026 and 26% by 2030. This growth is largely driven by expanding model availability, improved battery technology, and increasing public awareness.
The new tax bill will end the $7500 tax credit on new EVs and the $4000 tax credit on used EVs.
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.
Major U.S. tax changes for 2025, largely driven by the "One Big Beautiful Bill" (OBBBA) Act, include permanent increases to the standard deduction, expanded Child Tax Credit, a higher SALT deduction cap, new deductions for seniors, tips, and auto loan interest, plus a permanent 20% pass-through deduction, while phasing out clean energy credits. These changes, effective for the 2025 tax year (filing in 2026), make many prior temporary provisions permanent and introduce new tax breaks for individuals and businesses.
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.
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.
By January 1, 2025, CEC must set standards for how charger operators notify customers about availability and accessibility of public EV charging infrastructure.
Electric vehicles are currently exempt from paying the congestion charge until 25th December 2025, after which they will also need to pay the charge, which is currently set at £15 for the entire day.
Here are the top 10 best-selling EV brands among manufacturers for 2025:
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.
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.
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.