Thinking About Getting an EV Before the Tax Credit Ends?

Editor’s note: This story was updated Sept. 4, 2025, to reflect news regarding the timeline of the electric vehicle tax credit program.

Tax credits for electric and plug-in hybrid vehicles are not long for this world, so if you want to save additional money on your next EV, you’ll have to act quickly. On July 4, President Trump signed a $3.4 trillion budget bill into law that discontinues EV tax credits Sept. 30.

However, the IRS recently updated the timeline, giving some buyers a bit more time. According to the IRS, if a buyer orders a new or used vehicle and puts money down on it before Sept. 30 but takes delivery after that date, they can still claim the tax credit at that later date.

Related: Electric Cars FAQs: What They Are and How They Work

The finalized law discontinues the $7,500 tax credit for new EVs and $4,000 credit for used EVs earlier than initially planned, as earlier iterations of Trump’s “One Big Beautiful Bill” budget called for the credits to end Dec. 31.

While there may be less time to shop if you want to claim the EV credit, one proposed recurring charge for electrified vehicle owners will not be going into effect: The finalized budget ditched an earlier proposal that would have charged an annual registration fee for hybrid vehicle owners ($100) and EV owners ($250), which government officials claimed could help offset that these owners pay less in gasoline taxes that go to fund roads and bridges.

If you’re thinking about getting an EV soon, start your research here:

Understanding EVs

By now, most people realize that EVs are very different from their gas-powered counterparts in terms of how they get power, how they drive, how to “fill them up” and even how much you should expect to pay for one. Many shoppers aren’t sure where to start when looking at an EV, and there’s a lot to consider. Check out the guides below to learn the basics.

• What to Know Before Purchasing an Electric Vehicle: A Buying Guide
• EV 101: A Video Guide to Electric Vehicles
• Electric Vehicles: Understanding the Terminology

Buying an EV

Once you understand how an EV works and how one might fit into your life, it’s time to decide which one is right for you. Check out these articles for help narrowing down your options.

• Should I Buy an Electric Car or Plug-In Hybrid?
• What Does the EV Tax Credit Overhaul Mean for Car Shoppers?
• Which Electric Cars Are Still Eligible for the $7,500 Federal Tax Credit?
• What to Know Before Buying a Used Electric Car
• Here Are the Best Finance Deals Before the EV Tax Credit Goes Away
• Here Are the Best Lease Deals Before the EV Tax Credit Goes Away

EV Shopping Tips

What if you’re interested in purchasing an EV after Sept. 30th? There will still be some other ways to add up the savings, including state and local incentives, free charging incentives, cash discounts, financing deals and opting for an EV with less range. Potential tariffs should also be taken into account when shopping for an EV, as well. Check out the following articles for shopping tips and information about how tariffs could affect your EV purchase.

• How Can You Save on Your EV Purchase?
• Which Tariffs Could Affect Your Next Car?
• How Are Automakers Responding to Trump’s Tariffs?
• Mercedes-Benz to Pause Deliveries of EQE, EQS EVs in U.S.

Living With an EV

The big differences between electric and gas-powered vehicles are likely obvious: plug versus no plug, no fuel required versus fuel required … and so on. Some other differences may not be as obvious. Read on to learn more about what the ownership experience is like for an EV.

• How Long Do Electric Car Batteries Last?
• Home EV Chargers and How to Choose One
• When Will All Fast-Charging Stations Be Open to All EVs?
• Cold Weather and EVs: What You Should Know
• We Bought a 2024 Kia EV9
• How Well Does the Kia EV9 Handle Family Duty?
• Testing the 2024 Kia EV9’s Range While Towing
• Reliability of Public EV Charging Infrastructure Improving, J.D. Power Finds

Cars.com’s EV Picks

Which EVs do Cars.com editors recommend? We have thoughts! Check out the articles below for details on which EVs stand out in terms of range, charging capabilities, value and overall livability.

• Best Electric Vehicle of 2025
• Top 10 Most Efficient Electric Cars
• Electric Cars With the Longest Range
• Here Are the 11 Cheapest Electric Vehicles You Can Buy
• Top EV Picks by Category

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More From Cars.com:

• Here Are the New Electric Vehicles Planned by 2026
• Electric Cars for Sale
• Shop for EVs and PHEVs
• More Electric Car News and Reviews
• Find Your Next Car

Cars.com’s Editorial department is your source for automotive news and reviews. In line with Cars.com’s long-standing ethics policy, editors and reviewers don’t accept gifts or free trips from automakers. The Editorial department is independent of Cars.com’s advertising, sales and sponsored content departments.