Trump’s ‘big beautiful bill’ ends $7,500 EV tax credit

President Donald Trump‘s signature on his so-called big beautiful bill was a death blow for tax credits that lowered the cost of electric vehicles.

Those tax credits — worth up to $7,500 and $4,000 for purchases of new and used EVs, respectively — won’t be available after Sept. 30. Another tax break that’s ending lets dealers pass along savings on EV leases.

The credits were supposed to last for another seven years, through 2032.

Analysts think the abrupt end to these federal subsidies will trigger a rush by consumers to buy or lease an EV in coming months.

“This is going to be the summer of the EV,” Ingrid Malmgren, senior policy director at Plug In America, a nonprofit advocating for a quicker transition to electric cars, previously told CNBC.

Automakers have certainly taken notice.

Tesla, the nation’s largest EV maker, has taken to email blasts and social media to spread the word that the federal tax credits are soon disappearing.

“If there ever was a time to yolo your car purchase, it’s now,” the carmaker wrote Tuesday on X. (YOLO means you only live once.)

“Order Soon to Get Your $7,500,” read a separate Tesla newsletter emailed Tuesday.

(Elon Musk, Tesla’s CEO and former head of the so-called Department of Government Efficiency, spoke out against the legislation that axed the tax credits, lambasting the trillions of dollars it adds to the national debt.)

This is a theme consumers will likely see through the summer, analysts said.

Automakers and dealers will likely “promote a sense of urgency: ‘Buy now, the EV incentive is going away,'” said Stephanie Valdez Streaty, director of industry insights at Cox Automotive.

Another factor that may speed up purchases: Consumers must have the vehicle in their possession by Sept. 30, Malmgren said in an interview after the bill passed.

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In the eyes of the IRS, it won’t be enough that consumers order one by Sept. 30 and take possession later, Malmgren said. They must be driving it off the lot by that deadline, she said.

“Having this deadline so soon, just in a couple months, definitely lights a fire under people’s butts,” Malmgren said. “I expect that people who are kind of thinking about it or on the fence about it may take action now.”

Consumers will likely see some “really good” financial incentives like discounts or financing deals before Sept. 30, on top of the federal tax credits, Valdez Streaty said.

For example, Ford extended a “complimentary home charger and standard installation offer” in the U.S. until Sept. 30, Stacey Ferreira, the automaker’s director of U.S. sales strategy, wrote on the company’s website Tuesday.

The Inflation Reduction Act, which provided historic…