What is the story about?
What's Happening?
The U.S. federal tax credit for electric vehicles (EVs), valued at $7,500, expired on September 30, 2025. This incentive, which had been in place since 2022, was removed as part of the Trump administration's tax overhaul, known as the Big Beautiful Bill. The removal also included the elimination of a $4,000 credit for used EVs and a $3,750 subsidy for plug-in hybrids. The expiration of these credits is expected to significantly impact the EV market, which had seen increased adoption due to these financial incentives.
Why It's Important?
The expiration of the EV tax credit is likely to have a substantial impact on the electric vehicle market in the U.S. The credit had been a significant factor in encouraging consumers to switch from traditional internal combustion engine vehicles to electric vehicles. Without this financial incentive, the cost of purchasing an EV increases, potentially slowing down the adoption rate. This change could affect automakers who have invested heavily in EV production, as well as consumers who are considering transitioning to more environmentally friendly vehicles.
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