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The federal $7,500 EV tax credit expires October 1, 2025, potentially affecting sales and prices.
The $7,500 federal EV tax credit, enacted in 2022, expires October 1, 2025, under a tax and spending bill passed during President Trump’s administration.
While EV sales rose 7% in 2024, growth has slowed to a 1.5% increase in the first half of 2025, with a 6.3% decline in the second quarter.
The credit’s end may reduce demand and push real-world prices higher, though automakers could offset this with lower sticker prices, financing deals, or cash-back offers.
Some buyers may accelerate purchases before the deadline, potentially leading to temporary sales spikes followed by drops and production cuts.
Despite the loss of the credit, 65% of intended buyers plan to proceed, driven by performance, fuel savings, low maintenance, and environmental concerns.
The credit does not apply to vehicles over $80,000, so luxury and large trucks may see less impact.
Final prices remain uncertain due to dealership negotiations, and while short-term market shifts are expected, long-term demand is seen as resilient.
El crédito fiscal federal de $ 7,500 EV expira el 1 de octubre de 2025, afectando potencialmente las ventas y los precios.