U.S. Congress Passes Comprehensive Tax and Budget Legislation

The United States Congress has approved a comprehensive tax and budget legislation, which is set to bring an end to several tax incentives for electric vehicles.

As of September 30, the $7,500 tax credit for purchasing or leasing new electric cars will expire. This means that Americans looking to buy new electric vehicles will no longer be eligible for this credit next month. The credit was originally introduced in 2008 and had the manufacturer's limit increased from 20,000 units of production at first, before gradual reduction steps.

However, with a significant expansion to rental cars in 2022, the $4,000 tax deduction for used electric vehicles will also end soon.