EV tax credits gone

Kay Cashman

Petroleum News

Sept. 30 was the last day for consumers to get tax credits for purchasing new or used electric vehicles.

President Trump's One Big Beautiful Bill Act, signed in July, repealed the 2022 Inflation Reduction Act EV tax credits, which offered consumers up to $7,500 for buying a new EV and $4,000 for a used one.

The Washington Examiner said the credits were intended to encourage consumers to purchase battery-powered vehicles.

Experts expect a decline in EV sales now that the tax credits have expired, the Examiner reported.

Loren McDonald, CEO and chief analyst at EV charging data firm Chargeonomics, said via email that EV sales will "clearly be down" over the next few quarters," per the Examiner.

Those who purchase EVs before the expiration have been provided some flexibility from the Internal Revenue Service, the Examiner reported: "In August, the IRS modified the phase-out of the electric vehicle tax credits, stating that if a consumer has a written binding contract in place and payment has been made on or before the expiration date, then the buyer may still claim the credit. That means buyers will be able to receive the tax credit even if the car is delivered after today."

Plug In America executive director Joel Levin said "EVs are here to stay, with or without the federal tax credits. Ask anyone in the auto industry and you will hear the same thing: it's just a question of pacing and where the cars will be built; here or abroad."

-Petroleum News