The EV Credit Expires Today. Ford and GM Still Offer $7,500 Off—for Now.

The Cadillac Escalade IQ is the all-electric version of GM’s popular large luxury SUV. (Photo by ROBYN BECK/AFP via Getty Images)

Key Points

• The $7,500 federal tax credit for electric vehicle purchases has been eliminated, impacting new EV sales.
• Ford and General Motors will continue offering $7,500 off leased EVs, primarily for existing inventory.
• August saw record U.S. EV sales, at 146,332 units, comprising 10% of new-car sales, as buyers beat the deadline.

The $7,500 federal purchase tax credit for qualifying electric vehicles goes away after today, eliminated in President Donald Trump’s tax and spending bill passed on July 4.

Losing the credit is a headwind for anyone looking to buy—or sell—new EVs. Still, car buyers interested in going green can find a few more deals.

Ford Motor and General Motors will continue to give buyers $7,500 off a leased electric vehicle. The Ford program should be in place until December 31, although the program appears to cover only existing inventory.

The existing inventory caveat is designed to minimize the cost to the auto makers. GM and Ford’s financing arms should still qualify for the credit, with the cars essentially sold to a business—the dealers—by the end of the month.

The deal delays what is expected to be a few rough months for the EV industry in America. Losing the $7,500 credit is a big deal. The average EV costs U.S. buyers about $57,000, according to data provider Kelly Blue Book, while the average new car costs about $49,000. The purchase tax credit effectively made up the difference between gas- and battery-powered cars.

U.S. EV sales in August were a record 146,332, accounting for 10% of all new-car sales, with buyers looking to beat the deadline. Wall Street and auto makers expected to see some dip in the fourth quarter. Deals and stable pricing on existing inventory will delay the EV downturn, but it will eventually arrive.

The EV issue hasn’t yet hit shares of GM and Ford, who don’t make money selling EVs yet. Coming into Tuesday trading, Ford stock was up 22% year to date, and GM shares were up 15%. Investors have been relieved that the impact of automotive tariffs has been less severe than feared. Car prices have inched up but remained stable, and new-car sales have risen in 2025.

In Tuesday trading, Ford stock fell about 1.1% and GM shares lost 0.3%, while the S&P 500 and Dow Jones Industrial Average rose 0.4% and 0.2%, respectively.

Write to Al Root at allen.root@dowjones.com