Contact: Noah Barnes, Electrification Coalition
noah@electrification.org, (202) 461-2371
WASHINGTON—Because of the One Big Beautiful Bill Act, federal EV tax credits will expire on September 30, 2025, nearly seven years prematurely. Consumers and businesses interested in purchasing an EV should act now to save thousands on their next vehicle; as long as a nominal down payment is made before the September 30 deadline, purchasers can claim up to $7,500 per light-duty vehicle, as well as up to $40,000 per medium- or heavy-duty vehicle.
Despite the end of the federal EV tax credit, the long-term outlook for electric mobility—both globally and in the United States—remains strong. More than $200 billion of domestic EV manufacturing investments have been made, the number of public charging ports has more than doubled in the past three years (over 200,000 ports and climbing), and the ever-growing American-made EV lineup goes farther, charges faster, and costs less than ever before. State, utility, and local incentives are also still in place to reduce costs in many locations across the country.
Though U.S. market share for EVs is projected to more than double from 11% today to 27% by 2030 without tax credits, this growth pales in comparison to the 40% market share previously expected by 2030 with the tax credits in place. This matters because the world is rapidly electrifying, whether or not the U.S. keeps pace; EVs represent one in five new vehicles sold globally and are expected to rise to one in four by the end of the year. Removing EV tax credits may take the United States from global transportation leader to laggard.
EC Executive Director Ben Prochazka commented:
“Transportation electrification is a global transition. The federal tax credits were designed to ensure that the United States accelerates electrification and maintains global competitiveness in the automotive sector. The credits incentivize supply and demand by developing robust allied supply chains and stimulating consumer demand in the early stages of the EV market. The credits have galvanized tremendous investments in American manufacturing, helping to create nearly a quarter of a million well-paying jobs and maintain the U.S. auto industry’s leading role in the global market.
“Early termination of the credits only puts the United States further behind its rivals, particularly China, jeopardizing our ability to compete globally and exacerbating multiple economic and national security vulnerabilities. However, no policy retrenchment can stop the electrification transition.
“EVs are still the future of transportation. American companies have made incredible investments, hiring American workers, and EVs’ economic and national security advantages are simply too compelling. They cost less to fuel, require less maintenance, and contribute to American energy independence and manufacturing prowess. However, ending the tax credits now creates a bumpier road ahead and hinders our ability to compete globally.
“For anyone who has ever considered an EV, right now is one of the best opportunities to purchase an EV, get the best possible price, and enjoy the many benefits of electric transportation.”
On Wednesday, October 1 at 3 p.m. ET/noon PT, Prochazka will host a webinar with Cox Automotive Director of Industry Insights Stephanie Valdez Streaty to discuss EV market insights. Register here.
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About the Electrification Coalition: The Electrification Coalition is a nonpartisan, nonprofit organization that promotes policies and actions to facilitate the widespread adoption of plug-in electric vehicles (EVs) on a mass scale to overcome the economic, public health and national security challenges that stem from America’s dependence on oil. ElectrificationCoalition.org