The U.S. House has passed President Donald Trump’s “Big Beautiful Bill,” which includes the elimination of the federal EV tax credit, marking a significant shift in clean energy policy. The bill, now awaiting Trump’s signature, will officially end the $7,500 EV tax credit on September 30, 2025.
This legislation will have a widespread impact on clean energy incentives, with several key credits set to expire in the coming months. The $7,500 EV tax credit for new electric vehicles, the $4,000 credit for used EVs, and the $7,500 commercial EV credit will all come to an end on September 30, 2025. Additionally, the Alternative Fuel Vehicle Refueling Property Credit will expire on June 30, 2026, while the Home Energy Efficiency Improvements Credit, Residential Clean Energy Credit, and New Energy Efficient Home Credit will also see their deadlines approaching.
The impending expiration of these incentives could lead to a surge in EV sales as buyers rush to take advantage of the federal incentive before it disappears. Tesla, which dominated U.S. EV sales in Q2 2025 with approximately 151,000 units sold, stands to benefit from this near-term boost in demand. General Motors, which had its strongest EV quarter yet with around 46,000 units sold, may also see a sales surge in the coming months.
As EV affordability is expected to take a hit with the elimination of the tax credit, the industry will be closely monitoring how this plays out in 2026. Automakers are likely to ramp up promotions as the deadline approaches, but the question remains: how will Tesla navigate this new landscape? Will the company rely on its brand recognition and competitive advantages to drive sales, or could the long-rumored $25,000 EV finally become a reality?
The future of the EV market hangs in the balance as the federal tax credit comes to an end. Stay tuned to see how this development shapes the clean energy sector in the months to come. Share your thoughts in the comments below.