Bad news for the electric vehicle tax credit: This is the expiration date for the $7,500 refund for those buying an EV

Donald Trump’s ‘One Big Beautiful Bill Act’ - a robust package of tax and other economic reforms - will undoubtedly have an effect on the vast majority of Americans, including those who purchased, or are planning to purchase, a new or used electric vehicle in 2025.

When does the federal EV tax credit expire?

Before the bill came into being on July 4, new and leased EVs came with a $7,500 federal tax credit, and used EVs included up to $4,000, effectively bridging the gap between electric and gas. Not every EV qualifies, with the tax credits available to each buyer dependent on a number of criteria, which differs for new, used and leased electric vehicles.

We can only assume the number of new and used EV owners will drop in the United States as a consequence of the ‘One Big Beautiful Bill Act,’ which will see the federal electric vehicle tax credit expire on September 30.

What’s better value, electric or gas?

Although electric vehicles are cheaper to run than gas-powered cars, the initial price difference between the two is a turn-off for many potential purchasers.

Those incentives were originally designed to help make electric vehicles more appealing to prospective buyers simply by making them more affordable; at present, to buy a new electric vehicle it is around $9,000 more expensive than a gas vehicle, or $2,000 if you’re buying used.

However, despite the elimination of the tax credit, those in the know insist EVs are significantly more efficient, and will therefore be much better value, in the long run compared to their gas-powered ancestors.

“Quickly you’ll end up paying less than a gas car because it costs much less to fuel, and it needs almost nothing for maintenance,” Senior Policy Director Ingrid Malmgren of the nonprofit advocacy group Plug In America told CBS.

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