The federal tax credit for consumers purchasing an electric vehicle is no longer, having ended on September 30, 2025. Manufacturers leaned heavily on the credit, which allowed qualified consumers to save up to $7,500 on a new vehicle when filing their IRS 1040 forms. Though there were some manufacturers who long used up their allotment of credits, the availability of this incentive helped lift the entire industry.
As the Trump Administration made clear that the credit would come to an end, EV manufacturers began to adjust their plans. Most decided to change their release schedules, delaying new product for months, if not years. Others decided to simply cut back on EV manufacturing, pivoting to hybrids to supply a fuel efficiency alternative.
Manufacturers Respond
But just as the industry adjusts, automakers are planning low-cost versions of current and planned models, effectively offering a near equivalent offer to the lost federal incentive.
