Congress passed legislation eliminating federal electric vehicle tax incentives, ending the $7,500 new EV credit and $4,000 used EV credit on September 30. The policy shift removes key affordability mechanisms that helped bridge the $9,000 average price gap between new EVs and gas vehicles, potentially slowing adoption among middle-income buyers despite long-term fuel savings.
Congress passed legislation eliminating federal electric vehicle tax incentives, ending the $7,500 new EV credit and $4,000 used EV credit on September 30. The policy shift removes key affordability mechanisms that helped bridge the $9,000 average price gap between new EVs and gas vehicles, potentially slowing adoption among middle-income buyers despite long-term fuel savings.