Federal EV Tax Credits and Perks Expire

Federal electric-vehicle incentives — including the $7,500 new-vehicle tax credit, a $4,000 used-vehicle credit and perks such as Peach Pass/HOV access — expired on Sept. 30 after the One Big Beautiful Bill ended the program. Buyers rushed to claim incentives in the final days, producing record third-quarter EV sales of about 410,000 vehicles (roughly 11% of new-vehicle sales). Roughly 15 states still offer rebates or credits, often targeted to low- and moderate-income buyers, but many state programs have exhausted funds and future support is uncertain. Dealers and automakers that invested in charging infrastructure and EV servicing may need to recalibrate business plans as near-term forecasts for EV market share are revised downward. Experts say the incentives helped move EVs from niche to mainstream — U.S. EV sales rose from about 118,000 in 2014 to roughly 1.3 million in 2024 — but the loss of federal support will likely slow growth in the near term.