Overview

• President Trump signed the “Big Beautiful Bill” on July 4, ending the $7,500 federal credit for new EVs and $4,000 for used models effective September 30, 2025.
• Lawmakers dropped staggered phase-out proposals in favor of the earliest possible termination date after House and Senate negotiators clashed over timelines.
• Industry experts predict a surge in EV purchases before the cutoff followed by a likely slump in new registrations once incentives expire.
• Germany’s coalition ruled out a household electricity tax cut and confirmed that EVs first registered from January 1, 2026 will face standard motor vehicle tax.
• Pure electric vehicles registered by December 31, 2025 will retain tax exemption until December 31, 2030, shortening the original ten-year benefit window.