2026-04-12 · Industry News · EVs for Idiots
Well, they did it. The federal EV tax credit -- up to $7,500 for new EVs and $4,000 for used ones -- is gone. The incentive that helped millions of Americans afford an electric vehicle has been axed, and the fossil fuel industry is popping champagne somewhere. Congratulations to them, truly.
The Inflation Reduction Act's EV tax credits were one of the most impactful pieces of clean energy policy in American history. The $7,500 new vehicle credit and $4,000 used vehicle credit made EVs directly competitive with -- or cheaper than -- gas cars for millions of buyers. The point-of-sale transfer meant you didn't even have to wait until tax season; the discount hit at the dealership. It was working. EV sales were setting records. Which, of course, is exactly why certain people wanted it gone.
Let's not pretend this happened in a vacuum. The oil and gas industry spent over $124 million on lobbying in 2023 alone. Koch-funded groups spent years arguing that EV credits were "handouts to the wealthy" -- conveniently ignoring the wave of affordable EVs under $35,000 that were making the credit accessible to middle-class families. They also never seemed to have a problem with the tens of billions in annual subsidies that prop up fossil fuels. But sure, helping regular people buy cleaner cars was the real problem.
Here's what the anti-EV crowd doesn't want you to realize: even without the tax credit, the economics of owning an EV are still compelling. You still save $1,000+ per year on fuel. You still avoid oil changes, transmission service, and most of the maintenance that bleeds gas car owners dry. Over five years, the total cost of ownership for many EVs is still lower than a comparable gas car. The tax credit made the math a slam dunk. Without it, the math is still good -- just not as good. That's an important distinction.
If the loss of the tax credit is making a new EV feel like a stretch, the used market is where you should be looking. Depreciation has made used EVs absurdly affordable. A three-year-old Chevrolet Bolt can be had for $15,000 to $18,000. Nissan LEAFs go for under $12,000. Even used Tesla Model 3s have come down significantly. These are cars with minimal maintenance needs and fuel costs that are a fraction of what you'd pay for gas. The used EV tax credit is gone too, but the prices have already baked in so much depreciation that the value is still there.
The federal credit is dead, but many states still offer their own incentives -- rebates, tax credits, sales tax exemptions, reduced registration fees, and utility company charging rebates. Colorado, California, New Jersey, New York, and others still have meaningful programs. These vary widely, so it's worth checking what's available in your state before assuming there's zero help out there.
Killing the federal EV tax credit was a win for the fossil fuel industry and a loss for consumers. Full stop. But it's not the end of the EV transition -- it's a speed bump. The technology is too good, the savings are too real, and the used market is too stacked with deals. They can slow this down, but they can't stop it. Buy an EV to spite them if nothing else. [Check your state's incentives](/incentives) and [find your EV](/find-your-ev).
Sources: OpenSecrets - Oil & Gas Lobbying, Consumer Reports - EV Savings, IRS - Clean Vehicle Credits (archived)