President Trump’s Mega bill ends the consumer tax credits for EVs in September. But until then, shoppers can still use them to lock in lower prices — and great lease deals.

Alison Takemura

Have you been thinking about getting an electric vehicle (EV)? It may be time to put your foot on the accelerator.

On July 4, President Donald Trump signed the ​“Big, Beautiful Bill” — and thus hastened the expiration date for tax credits that knock thousands of dollars off the price of an EV.

Under former President Joe Biden’s landmark Inflation Reduction Act, these incentives would have lasted another seven years. They will now sunset soon, on Sept. 30.

That leaves a small window of opportunity for shoppers willing to move fast.

“There are just so many benefits to driving an EV, and we encourage people to take advantage of the tax credits while they’re here,” said Ingrid Malmgren, senior policy director at the nonprofit EV advocacy organization Plug In America.

Getting an EV is one of the best ways to reduce your planet-warming pollution — on par with or better than replacing your fossil-fueled heating with a heat pump. And though they tend to cost more up front than cars that guzzle gasoline, EVs have many advantages. For starters, they provide a smoother, quieter driving experience. They also eliminate trips to the gas station and cost less to operate and maintain, pointed out Sara Baldwin, senior director of the electrification policy team at think tank Energy Innovation. A 2023 analysis by the nonpartisan group found that in every state, it is cheaper to charge all EV models than to fill up their gas-powered counterparts.

Here is a rundown of the incentives that are available until the end of September.

The New Clean Vehicle Credit (30D) can get you $7,500 off your federal tax bill for a brand-new, qualifying EV model that meets strict requirements related to where it is assembled and where the battery bits come from, for example. Fueleconomy.gov has a list, and dealers should be able to flag eligible vehicles. In addition, your household must earn less than $300,000 for married couples filing jointly, or $150,000 for single filers. You can get the discount right when you make your purchase.

The Used Clean Vehicle Credit (25E) can lop up to $4,000 off your federal tax bill for qualifying used EVs. The income thresholds are half of those for 30D: $150,000 for married couples filing jointly and $75,000 for single filers. You can get the discount at the point of sale.

The Commercial Clean Vehicle Credit (45W) of up to $7,500 cannot be claimed by consumers, but it benefits them anyway. Auto dealers can take the federal tax credit themselves, passing on the savings to leasing customers. Also affectionately dubbed the EV ​“leasing loophole,” the credit can be used for vehicles that do not meet the stringent requirements to claim 30D.

Plus, there is one more relevant credit that has a slightly longer lead time.

The Alternative Fuel Vehicle Refueling Property Credit (30C) provides up to $1,000 off your federal tax bill to install qualified EV charging equipment if you live in an eligible area. This credit does not expire until June 30, 2026.

What losing the tax credits means for the U.S. EV market

“The tax credits have been really powerful at helping to drive EV adoption and to make EVs more accessible to lower- and moderate-income families,” Malmgren said.

Once they are gone, experts are expecting the growth of the EV market to slow, but not stop, under the Trump administration.

The loss of the tax credits is compounded by other headwinds from the federal government, which has imposed ever-shifting tariffs, frozen funding to build out a network of EV chargers, and revoked California’s authority to set its own vehicle emissions standards. Before Congress stripped California of that autonomy, BloombergNEF had forecast that EVs would make up just 27% of car sales in the U.S. in 2030, down from last year’s prediction of 48%. Now, the research firm expects EV sales to fall even lower.

For the next two-and-a-half months that the federal incentives are intact, automakers and dealers could drop prices to try to move their inventory more aggressively, said Loren McDonald, chief analyst at EV and charging data firm Paren.

Fueled by the tax credits, the EV market has already had a steady drumbeat of some ​“amazingly low lease prices,” Malmgren noted. For example, in July, the 2024 Fiat 500e and the 2025 Toyota bZ4X, an all-electric SUV, are both on offer for $179 per month, InsideEVs reports.

Customers could see more deals like these if sellers anticipate a slump in consumer interest once the tax credits expire. However, discount offers are likely to be patchy, with the most popular models maintaining higher price points if demand for them outstrips supply, McDonald said.

In the used-EV sector, the $4,000 credit can make an especially big difference; some used EVs are priced as low as $15,000 or $20,000 to begin with.

“The used EV market is quietly on fire,” said Liz Najman, director of market insights at Recurrent, a company that aggregates data on battery health from tens of thousands of EVs across the United States. Used EVs are selling faster than at any point since COVID, she added.

How to shop for an EV

Check out Recurrent’s guide to shopping for used EVs and Plug In America’s PlugStar.com, a brand-neutral resource to help people find the vehicle that is right for them. Type in your zip code, and the site shows you local EV incentives.

Have specific features you want in your vehicle? Find a match for your needs — including range, seating, four-wheel-drive, and more — with Plug In America’s virtual shopping assistant. The tool can connect you to dealers registered with the IRS to provide federal EV tax credits.

“Given all the changes going on, try to find a dealer that offers the point-of-sale rebate,” Najman said, so you do not have to worry about claiming it yourself next tax season. ​“Work with a dealer who has IRS credentials, who can show you on the spot that they’re logging in and the car is qualified.”

If you run into trouble in your EV search, you can reach out to Plug In America; the nonprofit offers free one-on-one support for prospective and current EV drivers.

And don’t forget to land on your charging strategy — at home, work, or a public station. If you decide to get a charger, install it before you bring your EV home for ultimate convenience.

“The clock is now ticking on the federal tax incentives for new, used, and leased EVs,” Najman said. ​“The sooner you start looking, the better.”

Reprinted with permission from Canary Media’s July 10, 2025 blog at https://bit.ly/CanaryMedia_BestTimetoBuyEV