(Credit: Emily Forlini)
President Trump has delivered on a promise to end the electric vehicle tax credit.
As part of the "Big Beautiful Bill" that Trump signed into law on July 4, the credit, which offers $7,500 for new car purchases and $4,000 for used, will expire on Sept. 30, 2025. So, you must take delivery of a new vehicle before then to get the discount.
The credit dates back to 2022 as part of the Inflation Reduction Act and was not supposed to expire until Dec. 31, 2032. The version of the BBB that passed the House, meanwhile, had the EV tax credit expiring on Dec. 31, 2025, but the Senate moved that up.
Provided you meet the income eligibility requirements ($150,000 for individuals, $225,000 for head of household, and $300,000 for married or jointly filing), the electric vehicles that currently qualify for the credit are as follows:
- Acura ZDX
- Cadillac Lyriq, Optiq, and Vistiq
- Chevrolet Blazer, Silverado, and Equinox
- Ford F-150 Lightning
- Genesis Electrified GV70
- GMC Sierra EV
- Honda Prologue
- Hyundai Ioniq 5, Ioniq 9
- Jeep Wagoneer S
- Kia EV6, EV9
- Tesla Cybertruck, Model Y, Model 3, Model X
- Chrysler Pacifica Plug-In Hybrid (PHEV)
You can find the full list of model years and trims at fueleconomy.gov. As of this writing, the website hasn't been updated with the new Sept. 30 deadline. It still says these vehicles qualify until Dec. 31, 2025, which is not the case.
An earlier proposal in the budget bill to add a $250 annual fee at vehicle registration did not make it into the final version. The idea there was that the fee would help cover the loss of gas-tax collections, but there are also EV-related fees at the state level.
The bill also introduces a federal tax break for loans used to purchase a US-made vehicle, meaning final assembly occurs in a domestic plant. It applies to tax years 2025 through 2028.
Although many carmakers and consumers expected Trump to axe the tax credit, the rapidly approaching demise of the program (light speed in DC terms) is reverberating throughout the industry. To qualify for the tax credit, an increasing percentage of the vehicle's components had to be made in the US, so automakers have slowly been shifting more production to the US.
In a statement, Hyundai Motor Group said it's "committed to investing in America and localizing production, which allows us to remain competitive in our vehicle offerings, while maintaining the manufacturing flexibility to meet evolving demand in the market."
Hyundai plans to invest $21 billion over the next four years to expand US manufacturing, which includes the Hyundai Motor Group Metaplant America in Georgia and two battery facilities. Still, the company stressed that its business "is driven by consumer demand, which is why we continue to offer a full range of powertrains, including internal combustion engines, hybrids, plug-in hybrids, and EVs."
We also reached out to Ford, GM, and Kia for comment.