1srelluc
Diamond Member
Federal EV Tax Credit Will Officially End This September
The federal EV tax credit will officially end this September following the passage of a new budget bill, but it also dropped a couple of actions impacting Ford.
It is official - the tax credit worth $7,500 for the purchase of new electric vehicles in the US, as well as $4,000 for used EVs, will be terminated on 30 September 2025. It will end a subsidy programme that has been in place since 2008.
US President Donald Trump signed his tax reform and spending package (‘The One Big Beautiful Bill’) into law on 4 July, following approval from both the House of Representatives and the Senate. This seals the end of EV subsidies as of 30 September – in just under three months. The current tax credit of $7,500 applies to households buying or leasing a new electric vehicle, while a $4,000 tax credit is available to buyers of used EVs.
These and other soon-to-expire environmental tax incentives had been extended or modified under the Inflation Reduction Act, a law introduced in 2022 by former President Joe Biden. For example, the Biden administration expanded EV tax credits in 2022 to include leased vehicles and removed the manufacturer cap, which had previously disqualified OEMs once they sold more than 200,000 EVs.
The new bill also ends the ‘Alternative Fuel Vehicle Refueling Property Credit’ on 30 June 2026 instead of 31 December 2032. Just a reminder, the credit is currently available “to businesses and individuals who install qualified refueling or recharging property, including electric vehicle charging equipment, in an eligible location.”
At long last....The break made 0 sense. Indeed EV owners should pay the taxpayer 7% extra to buy one.
Let's subsidize a car that tears up roads due to it's weight, uses hard to replace rare earth minerals/ materials, and uses a bunch of electricity from our overtaxed grid to recharge. Never mind battery disposal.
I suspect that's 87% of the reason Musk is pissed and why he wants to start his H1B party.
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