How automakers are reacting to the end of the $7,500 EV tax credit

"Sadly, this was not a surprise. During last year's election, the Trump campaign made no secret of its disgust toward clean vehicles (and clean energy in general), and it promised to end subsidies meant to encourage Americans to switch from internal combustion engines to EVs. Once in power, the Republicans moved quickly to make this happen. Federal clean vehicle incentives had only recently been revamped in then-US President Joe Biden's massive investment in clean technologies as part of the Inflation Reduction Act of 2022."

"To qualify for the $7,500 tax credit, a new EV had to have its final assembly in North America, and certain percentages of its battery content needed to be domestically sourced. A separate $7,500 commercial tax credit for new EVs was created, which did not require domestic assembly or content and which applied to leased EVs. And Congress finally added a $4,000 tax credit for the purchase of a used EV."

Federal tax credits for new, used, and commercial electric vehicles ended for vehicles acquired after Sept. 30, 2025, following a federal government shutdown. Opposition to clean-vehicle subsidies during the prior election and swift Republican action after taking power led to the removal of those incentives. The Inflation Reduction Act of 2022 had established a $7,500 new-EV credit tied to North American final assembly and domestic battery content requirements, a separate $7,500 commercial EV credit that covered leased vehicles and did not require domestic content, and a $4,000 credit for used EV purchases. The IRS updated guidance reflecting the credits' unavailability after the specified date.

Read at Ars Technica