EVs After the Tax Credit: Still Smart, Still Growing

The passage of the One Big Beautiful Bill (OBBB) in July has brought the trajectory of electric vehicle (EV) growth back into the national spotlight—especially when it comes to federal tax incentives. One of the bill’s most immediate outcomes is the accelerated phase-out of the Clean Vehicle Credits introduced under the 2022 Inflation Reduction Act (IRA), including the New Clean Vehicle Tax Credit and the Previously Owned Clean Vehicle Tax Credit. These incentives—worth up to $7,500 for new EVs and $4,000 for used EVs—were originally set to run through December 2032. They will now expire on September 30, 2025—nearly seven years ahead of schedule.

While the updated timeline may feel like a setback to the casual reader, it also reflects progress toward the original goal of the tax credits: making EVs more affordable and accelerating cost parity with gas-powered vehicles. Over the past few years, EV prices have steadily come down, giving more drivers access to electric options—even as incentives begin to phase out. According to CarEdge, the average price of a new EV peaked at $66,997 in June 2022 and dropped by $11,453 by January 2025.

As a result, both consumers and businesses are now likely accelerating planned purchases to take advantage of the available tax credits before they expire. It’s a natural response to a known timeline shift.

EV Purchase Trajectory Remains Strong

EVs are clearly here to stay. In fact, they’ve already carved out a permanent place in America’s transportation future. Plug In America’s 2025 Annual Survey reported that over 1.56 million plug-in electric vehicles were sold in the U.S. in 2024—surpassing the 1.5 million mark for the first time. Nearly 300,000 new EVs were sold in the first quarter of 2025 alone, an 11.4% year-over-year increase.

New Vehicle Price Hitting Parity

Car and Driver currently shows 19 EV models available all with base prices under the average cost of a gas-powered vehicle. Battery costs, which currently account for roughly one-third to one-fourth of a complete car, are decreasing. Paired with rapidly advancing technology, electric cars are expected to reach cost parity with their internal combustion counterparts in the USA in the next 12-24 months according to Inside EVs. This trend is already in motion. According to Kelley Blue Book, the average price paid for a new electric vehicle was $56,910—higher than the $48,907 average for gas-powered cars, but down year-over-year in several key segments. Entry-level EVs, like the 2025 Nissan Leaf, start around $29,000, showing that competitive pricing continues to evolve. This is just one example of many available economic EV models, with additional future options already part of publicly discussed auto manufacturer pipelines.

Value Beyond the Vehicle Price

While the tax credit expiration may influence some buying timelines, the broader momentum behind EV adoption remains strong and continues to build. Businesses and drivers are drawn to EVs for the long-term cost savings—from lower fueling expenses to reduced maintenance needs compared to gas-powered vehicles. According to Consumer Reports’ EV Savings Fact Sheet the typical driver can save between $6,000 and $12,000 over the life of an EV. Beyond the savings, drivers appreciate the quiet ride, instant acceleration, and overall driving experience that many find more enjoyable and modern. Energy savings—both at the pump and over a vehicle’s lifetime—remain a powerful driver of adoption.

Funding is Still Available

And the bigger picture? The country’s transition to EVs and cleaner transportation is still moving forward. Infrastructure investment remains a cornerstone of this movement.

Just this month, nearly $1 billion in **NEVI (National Electric Vehicle Infrastructure) funds were unfrozen.** The Infrastructure Investment and Jobs Act also authorized $2.5 billion in competitive grants nationwide to complement the NEVI**.** Known as the Charging and Fueling Infrastructure (CFI) Discretionary Grant Program, this federal program awarded $635.69 million in grant funding in March to 49 projects that span 31 states and the District of Columbia, and include four Tribal Nations. This is paving the way for states and private partners to break ground on thousands of new public charging sites. These investments will play a pivotal role in building the backbone of a modern, nationwide EV charging network. Beyond national investments, individual states and utilities continue to offer funding opportunities to help businesses and communities expand their EV infrastructure. Because local and regional leaders are closest to the gaps in coverage, these investments are often well-targeted to meet real, on-the-ground needs. Incentives can partially or fully offset the cost of EV charging stations and installation, depending on factors like site location, use case, and accessibility. To explore current opportunities in your area, use Lynkwell’s Rebate Finder.

EV infrastructure companies, utilities, and transportation departments are still laser-focused on connecting communities—urban, suburban, and rural—with reliable, accessible charging. For drivers and fleet operators, that means confidence to go electric without worrying about where to plug in.

The Bottom Line

While policy changes may affect certain funding options, the rationale for electrification eclipses near-term trends. EVs are here to stay—and thanks to ongoing infrastructure investment, the foundation remains strong.