EV Sales Surge Before Tax Credit Ends Sep. 30
As the federal clean car tax credit is set to expire on September 30, electric vehicle (EV) sales have surged in the final days before the deadline. The provision, part of President Donald Trump's One Big Beautiful Bill Act passed in July, has provided a $7,500 subsidy for clean car purchases and leases.
According to Scott Kunes, COO of Kunes Auto and RV Group in the Midwest, "Take the opportunity for the federal tax credit while it's still out there." He noted that his dealership is seeing increased interest in lower-priced EVs like the Ford Mach-E, Volkswagen ID. 4, and Chevy Equinox EV, all starting under $40,000.
Automotive research firm Edmunds forecasted an overall car sales boost this quarter (July to October) thanks to the upcoming tax credit expiration. "The tax credit has been a game-changer for electric vehicle adoption," said Jessica Caldwell, executive director of insights at Edmunds. "We expect to see a significant increase in EV sales before the deadline."
Background and context reveal that the federal clean car tax credit was introduced to incentivize consumers to purchase environmentally friendly vehicles. The provision has been instrumental in driving down EV prices, making them more competitive with gas-powered cars.
Industry experts predict that the expiration of the tax credit will have a ripple effect on the market. "The loss of the tax credit will likely lead to a decrease in EV sales," said Kunes. However, some manufacturers are already planning for the future. Volkswagen, for example, has announced plans to introduce new EV models with competitive pricing.
As the clock ticks down to September 30, consumers are racing against time to take advantage of the remaining tax credits. With many dealerships offering special promotions and discounts, it's an exciting time for EV enthusiasts.
The expiration of the federal clean car tax credit marks a significant milestone in the evolution of electric vehicles. As manufacturers continue to innovate and improve their offerings, one thing is clear: the future of transportation is electric.
Byline: Sasha Lekach, Contributor, Forbes
Date: September 29, 2025
*Reporting by Forbes.*
