The federal EV tax credit of up to $7,500 disappears on Sept. 30, 2025.
For buyers, it’s a now-or-never choice. For automakers, it’s a looming sales cliff. But not all states are equally exposed — some have built deep EV momentum, while others are just catching up.
Here’s where adoption is hottest, and what happens when Washington cuts the cord.
The Deadline: Sept. 30, 2025
Federal credits for new and used EVs expire under the OBBB law. A signed contract with payment before the deadline still locks in eligibility.
The Money at Stake
Up to $7,500 for new EVs, $4,000 for used EVs under $25K. Lease deals can also capture the credit, lowering payments.
Sales Surge Before the Cutoff
August and September sales hit records — EVs made up 12% of all new U.S. vehicle sales, with buyers rushing to cash in before the window shuts.
California: The EV Capital
Home to 1.25M+ EVs — over 35% of the U.S. total — and nearly 24% of new sales in Q1 2025. No state has more to lose when credits vanish.
Washington, D.C. & the Northeast Surge
D.C. posted a 20.6% EV share in Q1. Northeastern adopters like New Jersey, Connecticut, Vermont, Massachusetts, and Delaware all top 10%.
Western Momentum
Washington (19.7%), Colorado (19.2%), Oregon (16%), and Nevada (15.2%) are surging, thanks to strong state incentives and urban demand.
Florida & Texas: The Big Two
While their market share lags the coasts, sheer size makes Florida and Texas crucial EV markets — both rank in the top three for total EV registrations.
Per Capita Leaders
California leads with over 3,000 EVs per 100,000 residents, but Hawaii, Oregon, Washington, and Colorado punch above their weight.
Automaker Response
GM is cutting EV production shifts, Rivian is laying off workers, and Tesla is sweetening deals with zero-percent APR as the deadline looms.
State Pushback
California is considering state-level credits to keep momentum alive post-Sept. 30, a model other EV-friendly states may copy.
Takeaway
The EV tax credit cliff will hit hardest where adoption is highest — California, D.C., the Pacific Northwest, and the Northeast. Sales will likely slump this fall, but states with aggressive policies may keep the market humming. For buyers, the choice is simple: lock in before Sept. 30, or pay the full sticker.
