WHAT’S NEXT WITH EVS?
- October 6, 2025
September 30th has come and gone—and that means the sun has officially set on the federal EV tax credits.
It’s a day that’s been looming since the passage of the budget reconciliation bill (AKA the Big Ugly Bill) in July, and marks the first time in decades that the government won’t be offering some kind of subsidy for plug-in vehicles.
It’s a massive loss for the United States because it helps ensure China will increase its lead in a world that is rapidly transitioning to electrified transportation. It’s incredibly short-sighted.
Most people love what EVs have to offer, but their high upfront cost has put a damper on sales. The federal tax credits played a crucial role in addressing this concern, making EVs more financially accessible to the average consumer while giving manufacturers more time to make EVs cost-competitive. With the credits gone, experts anticipate steep drops in new EV vehicle sales, U.S. auto manufacturers shifting their focus away from their EV lines, and a shrinking domestic market that all but guarantees U.S. irrelevance and Chinese leadership in a major new industry.
So what comes next?
It’s clear that the Trump administration’s hostility toward EVs isn’t going away any time soon. At the same time, there are many states, cities, and auto manufacturers that remain fully committed to the EV transition—and they’re doing everything they can to keep us moving forward.
Here are some of the positive developments we’re already seeing:
The federal EV tax credits may be gone—but that doesn’t change the fact that they helped set an irreversible transition in motion. That was a huge victory for consumers and the planet. Now, it’s up to states, cities, and automakers to do what they can to keep up the momentum.
Join us as we remind our elected officials that there’s still plenty of progress to be made!