Federal tax credits for EV buyers will be dropped at the end of September and a new study warns that could send demand crashing. To keep buyers motivated, automakers are rolling out some of the best deals ever on new battery-electric vehicles.
That’s a big problem for automakers who are continuing to roll out new models and who can’t afford to lose sales momentum. But it’s great news for buyers, with those manufacturers intending to keep momentum going by offering big incentives of their own – especially for lease customers.

Expect EV sales to “flatten considerably,” said Ed Kim, CEO of AutoPacific, Inc. Based on a survey of potential buyers, the research firm has halved the market share for all-electric vehicles it had previously forecast for the rest of the decade.

Currently, motorists can receive up to $7,500 when they purchase a qualified EV. That depends upon factors such as where the vehicle and its batteries were produced, as well as the MSRP and a buyer’s income. A loophole made it even easier for those who want an EV to qualify by leasing – which has now become the favored route for most customers.

The incentives go away, however, on September 30 as a result of language written into the federal spending measure, the so-called “One Big Beautiful Act of 2025,” passed by Congress back in July. It was one of a number of measures backed by the Trump administration expected to impact EV sales.