A sweeping new federal law – officially called the "One Big Beautiful Bill Act" – has changed the electric vehicle landscape. Signed into law on July 4, the bill eliminates federal tax credits for new, used, and leased electric vehicles after September 30, 2025. If you're considering switching to an EV, now may be the most strategic time to buy.
Discover which incentives you may qualify for with the GreenCars Incentives Tool.
Tax Credits Are Disappearing
Until now, drivers could get up to $7,500 off a new electric vehicle and up to $4,000 off a used one through federal tax credits. These incentives made EVs more accessible for middle-income buyers, narrowing the price gap between gas and electric cars.
Starting October 1, those credits are going away. Shoppers who purchase qualifying EVs before the deadline can still claim the full credit amount, but that window is closing fast. There’s no phase-out period, and there are no carve-outs for automakers with lower sales volume.
Explore eligible EVs at the GreenCars Marketplace.
Why Buying an EV Still Makes Financial Sense
While the end of tax incentives is a major change, the case for buying an electric vehicle remains strong. On average, EVs cost less to maintain, and they deliver significant fuel savings over time.
- No oil changes or complex engine parts mean fewer trips to the mechanic.
- Electricity costs about 3 cents per mile on average, compared to 15 to 18 cents per mile for gasoline.
- Regenerative braking reduces wear on brake components while extending driving range.
According to industry estimates, an EV can save you $8,000 or more in fuel costs over 15 years. If you charge at home during off-peak hours, your total savings could exceed $14,000.
Timing Your Purchase
The current federal tax credit is available through September 30, 2025. Whether you're in the market for a new or used EV, making a move now could mean thousands of dollars in savings. After that, buyers will need to rely on state-level rebates, dealership incentives, and long-term cost benefits.
Visit the GreenCars Marketplace to browse available EVs near you.
Other Auto-Related Tax Changes
The bill contains a range of tax provisions that affect auto dealerships and buyers:
- Temporary Auto Loan Deduction: Between 2025 and 2028, you may deduct interest on loans for new vehicles (up to $10,000) if the vehicle was assembled in the U.S.
- Bonus Depreciation: Businesses can once again claim 100% bonus depreciation on qualifying vehicle purchases starting in 2025.
- EV Leasing Credit: Eliminated alongside the other EV incentives after September 2025.
These changes reflect a broader shift in federal energy policy and vehicle affordability programs.
Final Thoughts
If you’re thinking about going electric, the next few months may represent your best opportunity to save. With tax credits ending and EV prices still elevated compared to traditional vehicles, buying before the deadline could offer significant advantages.
To take advantage of available incentives and find the right EV for your needs, visit the GreenCars Marketplace today.
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