Federal EV Tax Credit Will Officially End This September

As Ford Authority reported yesterday, an updated budget bill wound up passing through the Senate following a narrow 51-50 vote, meaning that it had to also pass through the House of Representatives before it can be signed into law by President Donald Trump. One of the more notable items present in this bill – at least, as it pertains to Ford and the automotive industry as a whole – was the fact that it would end the federal EV tax credit by September 30^th, 2025, which is earlier than two other versions of the bill previously introduced in the House and Senate. Now, that bill has promptly passed in the House, too.

According to Reuters, the new budget bill was approved by a majority in the House, setting the stage for Trump to sign it into law, which he’s expected to do. This means that both the $7,500 federal EV tax credit for new lease or purchased electric vehicles will end on September 30^th, 2025, which is also true of the $4,000 credit for used EVs.

In addition to killing off the federal EV tax credit in a couple of months, the budget bill will also eliminate fines for automakers that don’t meet certain corporate average fuel economy (CAFE) standards, and includes a deduction of up to $10,000 in car loan interest over the period of a year for the 2025-2028 tax years, though there are limitations in terms of income, and eligible vehicles must be assembled in the U.S.

The final version of the bill did wind up dropping a couple of proposed items that would have impacted Ford and its customers, however – the United States Postal Service (USPS) won’t be forced to sell off its fleet of all-electric delivery vehicles from Oshkosh Defense that utilize some Blue Oval parts, and the government won’t be imposing a $250 annual fee for EV owners to cover road repairs.