HILLSBOROUGH CO., Fla. — It’s almost the end of the road for drivers to get federal electric vehicle tax credits worth up to $7,500.
President Donald Trump passed the One Big Beautiful Act earlier this year, which ends the EV tax credits on Sept. 30. Before that, the credits were set to expire in 2032.
As the new deadline draws closer, Tampa area dealerships are seeing an uptick in sales.
“We advertise it like crazy, it’s all over our website, get it while it lasts,” said Rob Verhey, the New Car Director at Volvo Cars Tampa.
Verhey said in the months since the new expiration date was announced, they’ve seen a 30% increase in electric and plug-in hybrid car sales.
“The way car prices are, that $7,500 tax credit is very enticing for a lot of people who want to make that segway into the electric car market,” Verhey added.
Eligibility for the credit varies, but Verhey said at Volvo, they’re being offered on leases for EVs and plug-in hybrids. He said on top of the credit, the dealer is offering more savings, and for some cars, it’s making a big difference.
“The EX90, it qualifies for almost $15,000 in rebates right now,” Verhey said, talking about Volvo’s largest electric SUV.
How the credits work
The federal tax credits are complicated and have changed several times in recent years.
New car buyers and leases can be eligible for a rebate at the dealer, as opposed to having to file for the credit on their taxes.
For buying a new vehicle, the MSRP must be under $80,000 for an SUV and $55,000 for a sedan, wagon, or hatchback.
Used vehicles that are at least two years old and sold for less than $25,000 could qualify for a $4,000 credit.
There are restrictions on manufacturing for cars made in North America and containing batteries with a percentage of components that come from the U.S. and certain allied countries
To qualify for a federal tax credit, the buyer’s income after taxes can’t be above $300,000 for those who file as married or above $150,000 for anyone filing as single or separately.
For people who choose to lease, the $7,500 credit can be used toward any EV without restrictions on the sticker price, manufacturing, or buyer income.
Drivers see a roadblock
Some drivers are disappointed to see the tax credits expire.
Matthew McMullen’s family runs the driving school, Driving Made Easy, which recently added an EV to their fleet.
“The car is relatively inexpensive, and then the tax incentive made it really nice to buy,” McMullen said. “You get a big chunk of the car back right away, so your overhead goes down right away.”
McMullen said that without the tax credits, any plans they had to add more EVs to their driving school are being curbed.
“The government says they want to move forward with green clean energy and move forward with electric cars, yet they’re taking away the incentive to buy the electric cars in the first place,” McMullen said. “If there’s no incentive financially to get one through a tax credit, we have to look at other options as a business.”
There is another EV-related credit that is set to expire. Drivers can have a home charger installed for a $1,000 rebate or up to 30 percent of the cost of the project, whichever is less. That credit ends on June 30, 2026.
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