Overview

• On July 3, Congress approved legislation ending the $7,500 new and $4,000 used federal EV tax credits effective September 30, 2025.
• Barclays auto analyst Dan Levy predicts a significant pre-buy surge as consumers accelerate purchases to qualify before the credits expire.
• The final bill also eliminates penalties for automakers missing Corporate Average Fuel Economy targets and drops a planned $250 annual EV road-repair fee along with a requirement for the U.S. Postal Service to sell off its EV delivery vehicles.
• A Harvard University study forecasts that ending the tax credits would reduce EV penetration by about 6 percentage points by 2030 while saving the government an estimated $169 billion over a decade.
• Plug In America experts and a Yale Climate Connections analysis say EVs still deliver lower lifetime fuel and maintenance costs and about 31 percent lower CO₂ emissions even in coal-dependent regions.