Would You Purchase an EV Once the Tax Credit Ends? | Carscoops

      The federal tax credit for electric vehicles will diminish this fall, meaning that these vehicles will no longer qualify for a credit of up to $7,500.

      Will this change influence your decision to purchase an EV?

      Recently, President Trump signed The One Big Beautiful Bill into law, marking the end of the clean vehicle credit. The incentive will expire on September 30, 2025, rather than the initially intended date of December 31, 2032.

      This development is expected to create significant ripples in the industry, as vehicles will no longer benefit from discounts of up to $7,500. Without this incentive, consumers will face higher prices, making EVs potentially less attractive.

      This leads us to our question of the day: will the discontinuation of the tax credit affect your next vehicle purchase? While some individuals are staunchly against electric vehicles and would never consider one, many others remain undecided.

      It's easy to see why; the credit offers consumers up to $4,000 for used vehicles and up to $7,500 for new ones. This makes the Equinox EV especially appealing, starting at $33,600 with a range of 319 miles (513 km). When considering the $7,500 credit and a $2,000 customer cash incentive, the starting price drops to $24,100, before a $1,395 destination fee.

      That's an excellent deal, comparable to the 2025 Trailblazer, which has a total cost of $24,890. The Equinox EV is also only slightly more expensive than the Trax, available for as low as $21,895.

      However, once the tax credit expires, the situation may shift. If Chevrolet maintains its pricing, the model would cost $34,995 before incentives. While still affordable, it would no longer be such an attractive offer.

      This could affect the model's popularity, which has been exceptionally high. In the second quarter, Chevrolet sold 17,420 Equinox EVs, making it GM’s best-selling electric vehicle by a significant margin. It even surpassed the entire Cadillac EV lineup, which totaled 11,795 sales across the Lyriq, Optiq, Vistiq, and Escalade IQ.

      While the future remains uncertain, we need only look back to see the potential impacts of eliminating the credit. Several models have lost their eligibility due to production and sourcing requirements in recent years.

      In response, some automakers have reduced prices or shifted production to the United States, a decision that now seems to have been a costly error.