Asger Risom
The U.S. government’s Clean Vehicle Credit, worth up to $7,500, is set to expire on September 30. Experts warn the change could make electric vehicles and plug-in hybrids significantly more expensive to lease or buy.
The U.S. government’s Clean Vehicle Credit, worth up to $7,500, is set to expire on September 30. Experts warn the change could make electric vehicles and plug-in hybrids significantly more expensive to lease or buy.
What the EV Tax Credit Is
Introduced in 2023, the Clean Vehicle Credit allowed EV and hybrid buyers to save up to $7,500, either at tax time or directly through dealerships. The program applied to both new and used models under certain conditions.
When It Ends
The incentive officially expires on September 30, 2025. After that, the financial support will no longer be available, removing one of the biggest perks for EV shoppers.
No Impact on Current Leases
If you’ve already leased an EV before the deadline, your payments won’t change. That’s because the credit goes to the dealership on leased vehicles, and existing deals are locked in.
Why Leasing Was a Loophole
Under federal law, leased EVs count as commercial vehicles, making them eligible for a wider range of models and bypassing the income restrictions that apply to purchases.
How Payments Will Change
Finance expert Ravi Wadan estimates that losing the $7,500 credit could raise lease payments by about $200 per month. A $350 lease on a Honda Prologue, for example, could jump to $550.
Popular Models Affected
Some of the most in-demand models taking advantage of the credit include the Chevy Equinox EV, Honda Prologue, Hyundai Ioniq 5, Mercedes EQE, and Tesla Model Y.
Surge in Sales Before Deadline
Dealers have reported a rush of buyers locking in leases and purchases before the credit disappears, hoping to save thousands over the life of their contracts.
Industry Impact After Sept. 30
Analysts warn that EV sales could slow sharply once the credit is gone, as higher monthly costs make electric cars less appealing to mainstream shoppers.
The Bottom Line for Buyers
If you’re considering an EV or hybrid, experts recommend acting before the September 30 deadline. After that, the same car could cost you hundreds more each month.
