If you’ve been to a dealership the past couple of months, you may have noticed more drivers expressing interest in electric vehicles (EVs). One reason is that the passage of the One Big Beautiful Bill means that the federal EV tax credit will expire at the end of September.
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For those looking to buy an EV, there are several things to consider regarding eligibility and finances.
An Increase in Sales
“EV inventory is selling fast,” said Justin Fischer, automotive expert at CarEdge. “As buyers rush to take advantage of federal incentives before they expire, EVs are selling faster than gas-powered models for the first time ever.”
According to Fischer, CarEdge Insights shows a 62-day supply of new EVs in September and a 37-day supply of used EVs. Per Fischer, once incentives expire on Sept. 30, don’t expect big manufacturer incentives until December’s year-end sales.
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Buyers: What To Know Now
Here are three things every buyer should know now with the credit ending.
The federal tax credit for new and used EVs ends after Sept. 30. As noted by Kiplinger, you must purchase before the deadline to claim up to $7,500 for a new EV or $4,000 for a used vehicle.
Eligibility rules still apply. In fact, Fischer said many EVs don’t qualify, and recommended buyers check the government’s fuel economy website to learn more. This may be especially helpful given that there’s been a great deal of confusion over the federal tax credits, who qualifies and how exactly they work.
Do your homework. If you’re ready to buy an EV, make sure you know what you qualify for and whether your finances are in good enough shape to afford a vehicle. Keep in mind that some state and local incentives might remain in effect even with the federal credits ending.
Editor’s note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on GOBankingRates.com.
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This article originally appeared on GOBankingRates.com: Trump’s Tax Law Is Ending the EV Tax Credit in September: 3 Things Every Buyer Should Know
