If you’re thinking about buying an electric vehicle (EV), the clock may be ticking faster than you realize.
The recently passed One Big Beautiful Bill includes a sweeping phaseout of many clean energy incentives, including the popular EV tax credits that have helped drive the adoption of electric cars across the country.
What’s Ending and When
Effective October 1, 2025, the following federal EV tax credits will be eliminated:
- The $7,500 Clean Vehicle Credit for new electric vehicles (Section 30D)
- The $4,000 Previously-Owned Clean Vehicle Credit (Section 25E)
- The Commercial Clean Vehicle Credit (Section 45W)
- The Alternative Fuel Refueling Property Credit for home and commercial EV chargers
These incentives were designed to reduce the upfront cost of going electric, but the new law reverses course and ends all of them at the same time.
What You Should Know
If an EV purchase or charger installation is on your radar, you’ll want to look into it as soon as possible. As the deadline approaches, it may become harder to find qualifying vehicles in stock or to schedule a charger installation with a local contractor.
Bottom Line
The opportunity to take advantage of these tax credits officially ends after September 30, 2025. Whether you’re buying a car or installing charging infrastructure, delays could make it harder to act in time.
At Custom Fit Financial, we specialize in advice only fee only retirement planning for individuals and couples age 55 and over. We offer hourly and project based financial planning with no sales pressure or product commissions. Whether you’re in Cedar Rapids, Iowa City, or working with us virtually across the United States, we help you make confident informed decisions about your retirement.
Curious how the expiration of these EV tax credits might impact your budget or plans to go electric? Schedule your free intro call today.
