By If you’re considering the purchase of an electric vehicle for your business or personal use, now is the time to pay close attention.
On July 1, the U.S. Senate passed a tax bill that proposes to terminate the following three major electric vehicle tax credits, effective September 30, 2025:
- Section 45W—Commercial Clean Vehicles Credit. Up to $7,500 for light electric vehicles and up to $40,000 for heavy-duty commercial vehicles.
- Section 30D—New Clean Vehicle Credit. Up to $7,500 for qualifying new electric vehicles, with requirements for domestic sourcing of battery components and minerals.
- Section 25E—Previously Owned Clean Vehicle Credit. Up to $4,000, or 30 percent of the purchase price, for eligible used electric vehicles.
While the U.S. House of Representatives had initially proposed a December 31 termination, the current bill under consideration accelerates the sunset to September 30, 2025—and the House is expected to vote on this version soon, possibly before July 4.
Even if this bill stalls, the termination dates are likely to resurface in future legislation. So now is the time to act.
If you would like to discuss the purchase or lease of an electric vehicle, please call me on my direct line at 408-778-9651.