Overview

• Congress has approved a bill ending the $7,500 new-vehicle and up to $4,000 used EV tax credits and eliminating penalties for fuel economy shortfalls, with all measures expiring on September 30, 2025.
• Analysts including Barclays’ Dan Levy forecast a surge in EV purchases before the deadline followed by a sharp slowdown once credits lapse.
• Slate Auto has scrapped its promised sub-$20,000 base price and now expects its electric pickup to start in the mid-$20,000 range after incentives vanish.
• Major automakers will benefit from the removal of penalties for missing Corporate Average Fuel Economy targets, easing production constraints on gas-powered vehicles.
• Advocacy groups warn that ending these credits will put electric vehicles out of reach for many lower- and middle-income Americans.