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Getting an electric car? Federal EV Tax Credit set to expire impacting car buyers and dealers

Federal Electrical Vehicle Tax Credit Set to Expire in September
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BAKERSFIELD, Calif. (KERO) — The federal electric vehicle (EV) tax incentive program, which has helped thousands of Americans afford cleaner, greener cars, is set to officially end on September 30th. The program’s expiration follows its repeal under former President Donald Trump’s “Big Beautiful Bill.”

At Three-Way Chevrolet-Cadillac in Bakersfield, Sales Representative Bob Leikam says the tax credit made a noticeable difference in driving consumer interest.

"It’s helped to drive a lot of traffic through the lot and created excitement around EVs," said Leikam.With the incentive ending, automakers are rethinking their pricing, production schedules, and upcoming EV models. Leikam pointed out several vehicles currently on the lot that would have previously qualified for the $7,500 tax break, adding that future discounts may depend on inventory levels and manufacturer decisions.

When asked how the end of the tax credit could affect buyers, Leikam explained:

“It always comes down to the consumer's budget. With the $7,500 tax credit ending this month, it could cost you about $100 more a month on your payments.”

It’s also important to note that not every buyer qualified for the EV tax credit. Eligibility depended on factors like income level and the specific vehicle model.

Even for those who did qualify, the credit wasn’t applied at the dealership—it had to be claimed later when filing taxes.

As the deadline approaches, consumers considering an electric vehicle may want to act fast.
The federal incentive ends on September 30th.


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