"The Trump administration has killed the $7,500 federal clean vehicle credit, which had unlocked the rapid growth of electric vehicle sales nationwide over the past few years. With the Sept. 30 end date in mind, buyers rushed to claim the credit in its final days, helping automakers sell a record 410,000 EVs in the third quarter, which accounted for 11% of overall sales, according to Cox Automotive."
"Now EVs will have to sell without the credit, and we're about to find out what organic growth looks like. However, a small number of U.S. states will continue to offer their own regional tax credits, rebates, and incentives, allowing their residents to continue offsetting the high cost of EVs compared to gasoline vehicles. The number of states continuing to offer rebates as of Oct. 1 is really small, about 15. That's less than less than half of the country."
"California's famous Clean Vehicle Rebate Project ended in 2023, and talks of reviving the same after the end of the federal tax credit have so far failed. Other pro-EV states, such as Minnesota, Washington and Vermont have run out of funding for their local EV rebate programs. Some of these states may resume their rebates next year, but that's uncertain and could require local legislative actions."
The $7,500 federal clean vehicle tax credit ended on Sept. 30, triggering a last-minute surge in EV purchases that produced a record 410,000 EV sales in Q3, or about 11% of total auto sales. The federal incentive removal shifts the market toward organic demand without national subsidies. Approximately 15 states still offer regional EV rebates or tax credits, with availability varying by state and often prioritizing low- and moderate-income households. Several previously supportive states have exhausted funds or ended programs, and any future resumptions may require legislative action. State incentives have varying eligibility rules tied to income, price, battery size and tax liability.
Read at insideevs.com
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