Car expert sends clear message to buyers with US' $7,500 tax credit set to run out within 3 months
Published on Jul 14, 2025 at 3:37 AM (UTC+4)
by Claire Reid
Last updated on Jul 10, 2025 at 5:17 PM (UTC+4)
Edited by
Kate Bain
A car expert has urged American motorists who are thinking of buying an EV to act fast, with the $7,500 tax credit set to run out within three months.
US motorists who fancy switching from their old gas-powered vehicle to a new electric vehicle can claim up to $7,500 thanks to the Clean Vehicle Credits.
Anyone buying a used EV could save up to $4,000.
However, all of that is set to change after September 30.
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$7,500 tax credit set to run out soon
While EVs are generally cheaper to run than their gas-powered counterparts, they tend to come with a higher upfront cost.
In the US, in a bid to get more folks to make the switch, the United States introduced an attractive tax credit of $7,500 for new US-made electric vehicles and up to $4,000 for used EVs.
However, the tax credit is set to be scrapped after the introduction of the Inflation Reduction Act, dubbed the Big Beautiful Bill by President Donald Trump.
All federal EV tax incentives will end after September 30, 2025.
The bill was passed by Congress on July 3, and means all federal tax incentives will end on September 30.
As a result, car experts are sending out a clear message to US motorists who are considering getting an electric vehicle.
“Now is the time to buy,” director of industry insights at Cox Automotive Stephanie Valdez Streaty told CNBC.
She also suggested that we might see dealers offering better savings to create a sense of urgency with the $7,500 tax credit set to run out.
Things to watch out for if you’re buying a new EV
With the $7,500 tax credit set to run out in just three months, some experts have predicted a surge in new EV purchases.
But there are some things to look out for, the tax credit only applies to new vehicles, trucks, vans, and SUVs priced under $80,000 for trucks, and under $55,000 for all other cars.
If you’re hoping to get a used car to claim up to $4,000 in tax credit, it will need to be at least two years old and cost $25,000 or under.
The vehicle itself also needs to meet some requirements, including having a battery capacity of at least seven kilowatt hours and undergoing final assembly in North America.
You can check out the full qualifying rules here.
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Claire Reid is a journalist who hails from the UK but is now living in New Zealand. She began her career after graduating with a degree in Journalism from Liverpool John Moore’s University and has more than a decade of experience, writing for both local newspapers and national news sites. Claire covers a wide variety of topics, with a special focus on cars, technology, planes, cryptocurrency, and luxury.
