EV Tax Credit Ends: What You Need to Know
▼ Summary
– Federal tax credits for new, used, and commercial electric vehicles ended at midnight, coinciding with a government shutdown.
– The Trump campaign had openly opposed clean vehicles and pledged to eliminate EV subsidies, which Republicans acted on swiftly after taking power.
– These incentives were recently updated under President Biden’s Inflation Reduction Act of 2022, requiring domestic assembly and battery sourcing for new EV credits.
– Separate credits included a $7,500 commercial EV credit without domestic requirements and a $4,000 credit for used EV purchases.
– The IRS now states that these credits are unavailable for vehicles acquired after September 30, 2025.
The federal tax credit for electric vehicles has officially ended, creating a significant shift for consumers and the automotive industry. This change eliminates the financial incentive that many buyers relied on to make electric cars more affordable. As of this morning, the credits for new, used, and commercial EVs are no longer available for any vehicles purchased after September 30, 2025.
This development did not come as a shock to those following energy policy. The previous administration had openly criticized clean energy initiatives and pledged to terminate subsidies designed to accelerate the transition away from gasoline-powered cars. Following the election, legislative action was swiftly taken to fulfill that promise.
These incentives had been recently updated under the Biden administration’s Inflation Reduction Act, which represented a major investment in American clean technology. To be eligible for the $7,500 new vehicle tax credit, EVs needed to be finally assembled in North America and include a specific percentage of battery components sourced domestically.
Lawmakers also established a separate $7,500 commercial EV tax credit that did not impose these location-based requirements. This credit was also applicable to leased electric vehicles. Additionally, a $4,000 tax credit for pre-owned electric vehicle purchases was introduced, making EVs accessible to a broader range of budgets.
A visit to the Internal Revenue Service’s website now reflects this new reality. An update clearly states that the New Clean Vehicle Credit, the Previously-Owned Clean Vehicle Credit, and the Qualified Commercial Clean Vehicle Credit are discontinued for vehicles acquired after the September deadline.
(Source: Ars Technica)
