It’s October 1, so the electric vehicle tax credit is dead now

As the clock struck midnight on October 1, a significant shift occurred in the landscape of electric vehicle (EV) incentives. Alongside a federal government shutdown, all federal tax credits for new, used, and commercial electric vehicles have come to an end. This outcome was anticipated, as the previous year's election campaign revealed a clear stance against clean vehicles from the Trump administration, which pledged to eliminate subsidies that encouraged the transition from traditional internal combustion engines to electric alternatives. Following their election, the Republicans acted swiftly to dismantle these incentives. Under the Biden administration, federal clean vehicle incentives were recently overhauled as part of the Inflation Reduction Act of 2022. This legislation introduced criteria for qualifying for the $7,500 tax credit, including requirements for North American assembly and domestic battery content percentages. Additionally, a new $7,500 tax credit for commercial EVs was established, which allowed for leasing without the same assembly requirements. A further incentive of $4,000 for purchasing used electric vehicles was also introduced. However, a recent update on the relevant IRS page confirms that these credits, including the New Clean Vehicle Credit, Previously-Owned Clean Vehicle Credit, and Qualified Commercial Clean Vehicle Credit, are no longer available for vehicles acquired after September 30, 2025. This marks a pivotal moment in the federal support for electric vehicles as the industry faces new challenges ahead.