It is the end of the line for US electric vehicle tax credits. Sweeping tax and budget legislation approved by Congress on Thursday means $7,500 tax credits for buying or leasing new electric vehicles will end on Sept. 30, as well as a $4,000 used EV credit, that have helped juice green vehicle sales in recent years.

The budget bill passed by Congress on Thursday pulls the plug on federal tax incentives for electric vehicles.

As part of a massive tax and spending overhaul passed by Congress on July 3, 2025 - also known as the "Big, Beautiful Bill" - the long-standing federal tax credits for EVs will officially be terminated on September 30,