The $7,500 tax credit that car shoppers can use for new EV purchases is set to expire at the end of September, according to the tax and spending bill that passed the House of Representatives on Thursday.

President Donald J. Trump has been on a crusade during his second term in office to pass what he has dubbed the "One Big Beautiful Bill," a mega-bill encompassing significant tax and spending changes for the federal government — and as of July 3, that bill is set to have a major impact on future electric vehicle buyers.

Lawmakers would eliminate a $7,500 tax credit for households that buy or lease new EVs, as well as a $4,000 credit for consumers who purchase used EVs.

(Reuters) -U.S. Senate Republicans late Friday released a revised a tax and budget bill that would end the $7,500 tax credit on new electric vehicle sales and leases on Sept. 30 as well as the $4,000 tax credit for used EVs.

As part of a massive tax and spending overhaul passed by Congress on July 3, 2025 - also known as the "Big, Beautiful Bill" - the long-standing federal tax credits for EVs will officially be terminated on September 30,

Federal incentives for electric cars will disappear after Sept. 30 under the new bill Congress passed Thursday. Buying or leasing an electric vehicle (EV) will no longer come with a federal tax credit.

The federal EV tax credit will be eliminated on Sept. 30 under Trump’s new mega-bill, prompting urgency among buyers and concerns across the industry.