Federal EV tax credits expire Tuesday under new bill

DEDHAM, Mass. — Shoppers have until Tuesday to benefit from federal clean vehicle tax credits due to changes made under the Big Beautiful Bill.

Experts say if you’re thinking of purchasing an electric vehicle, now is the time.

“EV’s and hybrids are selling about 30% faster than they were at the beginning of the summer, according to Carfax data and that that’s not just the only thing, the other part is that costs have stayed stable.” said Em Nguyen with Carfax.

Doug Garland spent his Sunday looking into buying an EV.

He came from the Cape to test drive a Tesla.

“It’s a nice car, got a lot of pep,” said Garland.

For a new vehicle, you could get up to $7,500 off and for a used one, up to $4,000 off.

Nguyen said even people buying used clean vehicles can benefit as long as it’s the first time that car is being sold as used.

There are also some tips that Nguyen said shoppers should keep in mind when buying a used vehicle.

• Research
• Known your budget
• Take a test drive
• Ask questions
• Get an inspection

“Dealers understand that these tax credits are limited, so they are looking out for the consumer right now. They want to make sure that these types of vehicles leave their lots, which is why we’re seeing that cost stay stable, at least for the next few days,” explained Nguyen.

Meanwhile, Garland said he drives about 40 miles to work each way so he’s looking to save as much money as possible.

He said capitalizing on clean vehicle tax credits is one way to do that.

“We’ve known about them and kept track of it,” said Garland. “Then realized they were running out on the 30th, so here we are.”

When you purchase an EV or hybrid, the seller must give you information about your vehicle’s qualification.

Sellers also must report your vehicle’s qualification to the IRS and if they don’t, then the purchased vehicle won’t be eligible for the credit.

This is a developing story. Check back for updates as more information becomes available.

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