US Electric Vehicle Tax Breaks Expire September 30

Congress has passed sweeping tax and budget legislation that will end federal electric vehicle (EV) tax credits by September 30, including a $7,500 credit for new EVs and a $4,000 credit for used EVs, which have significantly supported green vehicle sales. The legislation also removes penalties for automakers failing to meet fuel economy standards, potentially easing production of gas-powered vehicles. Experts and advocacy groups warn this move could slow EV adoption in the U.S., with forecasts predicting a 6% reduction in EV market penetration by 2030. Despite the expiration of these incentives, specialists note that EVs remain financially advantageous over time due to lower fuel and maintenance costs. Industry analysts predict a surge in EV purchases before the credits end, followed by a sharp decline. While the credits' removal may soften demand, EV market growth is expected to continue as consumers weigh environmental benefits alongside long-term savings.