Federal EV Tax Credit Set to Expire, Leaving buyers with Limited Options
California consumers hoping to take advantage of federal tax credits for new adn used electric vehicles face a rapidly closing window, as the incentive is slated to end September 30th. The expiring credit, offering up to $7,500 for new evs and $4,000 for used ones, has been a key driver of electric vehicle adoption, and its loss could substantially impact sales and affordability.
The approaching deadline has created challenges for both buyers and dealerships. According to Acura dealership representative,Sweet,dealers were reluctant to transfer vehicles from other locations within the state,anticipating strong local demand. “Dealers just didn’t want to let go of those EV’s because they knew they would be able to sell them,” she explained. However, consumers who secure a binding deposit contract on a vehicle before the September 30th deadline will still be eligible for the credit, even if delivery occurs afterward.
Originally, Governor newsom pledged to introduce a California state tax credit should the federal incentive be eliminated by the Trump governance. Recent reports indicate Newsom has reversed course, stating the state will continue to invest in EV infrastructure but cannot currently offer a state-level tax credit to offset the loss of the federal program.
For those interested in following updates on this developing story, Vince Ybarra can be found on Facebook (@VinceABC30), Twitter (@vinceABC30), and Instagram (@vinceybarratv).
Copyright © 2025 KFSN-TV. All Rights reserved.
