REASON:
Starting Today, Electric Vehicle Buyers No Longer Get a Federal Tax Credit.
It's bad news for upper-income motorists wanting a deal, but good news for taxpayers.
In 2022, then-President Joe Biden signed the Inflation Reduction Act (IRA) into law...,[awarding] up to $7,500 for purchasing an electric vehicle. ...Donald Trump [terminated the subsidy] on September 30, 2025.
...each credit cost U.S. taxpayers around $32,000 [for each extra vehicle purchased], because around 75 percent of them went to people who would have bought an E.V. anyway.
...Tax credits can also artificially inflate prices, since sellers can charge more if the government will shoulder a portion of the bill. Under the previous version of the program, when Tesla and General Motors hit the sales cap and their E.V.s were no longer eligible for the credits, each company lowered prices.
