The “One Big Beautiful Bill Act” is already changing the way many Americans make decisions about their money. The measure makes gratuities tax-free for some tipped workers at the federal level and sets a fixed end date for federal incentives for electric vehicles.
Before the law, you could get a $7,500 federal tax credit for buying a new or leased electric vehicle. You could also get a credit of up to $4,000 for buying a used electric vehicle. Those incentives helped bring the prices of electric and gas cars closer together. Not every electric vehicle (EV) was eligible; the requirements for new, used, and leased vehicles varied based on a number of factors.
The law ends the federal EV tax credit on September 30. The adjustment is likely to lower the number of new and used EV purchases across the country.
The Internal Revenue Service (IRS) has given customers who are racing against the clock some leeway. The IRS says that buyers no longer need to take receipt of the vehicle by September 30 to get the credit. They merely need to consummate the sale by that date, according to Plug In America’s summary and industry reporting.
The cost is still the most important number. Even though electric vehicles (EVs) usually cost less to run than gas-powered cars, their greater initial cost keeps many people from buying them. A new electric vehicle costs roughly $9,000 more than a similar gasoline vehicle. A secondhand electric vehicle costs about $2,000 more.
Some supporters claim that the math can still favor electric cars even if the federal subsidy ends on September 30. CBS quotes Ingrid Malmgren, Senior Policy Director of Plug In America, as saying, “Quickly you’ll end up paying less than a gas car because it costs much less to fuel and needs almost nothing for maintenance.”
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