Electric vehicle (EV) shoppers are facing a rapidly approaching deadline. At the end of September 2025, the longstanding $7,500 EV tax credit, an incentive that has fueled years of growth in the electric vehicle market, will expire due to provisions in the newly enacted “One Big Beautiful Bill.”

This sweeping tax and budget package, passed by Congress and signed into law earlier this summer, marks a significant rollback of clean energy incentives implemented under the 2022 Inflation Reduction Act. The bill officially ends the $7,500 tax credit for new EVs and the $4,000 used-EV credit, both of which have played a major role in driving EV adoption across the United States.

In response, automakers are stepping up their efforts to clear inventory before the EV tax credit expiration hits. Tesla prominently features a banner on its homepage urging customers to take delivery by September 30, 2025, while Ford has extended its free home charger and installation offer through the same period to entice buyers.

“This is certainly a great time to be considering an EV,” said Claire McDonough, Rivian’s Chief Financial Officer. She noted that the company may introduce additional EV incentives, such as financing promotions, once the tax credit disappears.

First introduced in 2008, the federal EV tax credit aimed to reduce consumer costs and promote cleaner transportation. The Inflation Reduction Act later extended the credit while introducing new domestic manufacturing requirements for batteries and materials. The One Big Beautiful Bill now dismantles those efforts, shifting the landscape for automakers and consumers alike.

Barclays analysts predict a significant pre-buy surge during Q3 2025, followed by a steep drop in sales. Dealerships are already seeing increased activity. Dmitry Agapitov, a sales manager in California, said that past deadlines have sparked notable bumps in EV purchases, and he anticipates a similar trend this time.

However, price remains a barrier for many consumers. The average EV price in May stood around $58,000, almost $10,000 higher than the industry average for all new vehicles, according to Cox Automotive. High prices and charging infrastructure concerns continue to make EVs a challenging sell, especially without federal incentives.

Automakers are expected to roll out their own EV incentives to ease the transition. After losing partial credits earlier this year, Ford and GM responded by slashing prices or offering matching cash-back offers to stay competitive.

With just weeks left before the EV tax credit expiration, automakers and dealerships are urging shoppers not to wait. For those considering an EV, the window to maximize available incentives is closing fast.

Click here to read the full article, originally published July 9, 2025, by CTV News.