Back in 2022, the Biden administration signed into law the Inflation Reduction Act of 2022 which included more tax rebates for purchasing electric vehicles. The exact amount of the rebate varied from one make and model to another depending on the size (capacity) of the battery. Vehicles that quality must also be assembled in North America.
Qualifying EVs must be driven by an electric motor with a battery that has at least four kilowatt-hours (kWh) of capacity. The vehicle must also be a plug-in EV that uses an external energy source to recharge the battery. Vehicles that qualify for the tax rebate must also weigh no more than 14,000 pounds (Gross Vehicle Weight or GVW).
The tax credit ranged from $2,500 up to a maximum of $7,500 based on the vehicle battery capacity and the vehicle's gross weight rating.
Would-be EV buyers were warned to take advantage of the rebate program ASAP because the rebates would dradually phase out for any vehicle manufacturer once they built and sold a minimum of 200,000 EVs. Consequently, Tesla did NOT quality for any of the new EV tax credits because they had already exceeded 200,000 EV sales in the U.S.
For a list of Electric Vehicles that were eligible for the new tax rebates, Click Here
For a list of the rebate amounts for qualifying Electric Vehicles, that are eligible for the new tax rebates, Click Here
Because President Trump thinks climate change is a Democrat inspired hoax, he pushed for ending all federal subsidies for green energy projects (wind and solar) as well as rebates for consumers who wish to purchase an electric vehicle.
The federal electric vehicle (EV) tax credit program, which had offered up to $7,500 for new EVs and $4,000 for used EVs, officially expired for purchases and leases September 30, 2025.
Federal EV Charger Credit: The tax credit for purchasing and installing home EV chargers (Alternative Fuel Vehicle Refueling Property Credit) continued, but expired June 30, 2026.
State Programs (such as Illinois) is NOT affected by Federal law and continues to provide EV rebates for eligible residents. However, this program is subject to renewal and may or may not continue in 2027.
Abruptly ending the EV rebate program initially led to a surge in EV sales prior to the program ending. But since then, EV sales in the U.S. has slumped significantly, down 27 percent compared to the year before.
EV sales Volume for Q1 2026 saw approximately 216,400 EV units sold. Later in the spring, monthly new EV sales hovered around 85,000 to 89,000 units, with EV's accounting for an overall market share of 5.7 to 6.2 poercent of all new car sales (down sharply from earlier predictions before the rebatre program was cancelled by Trump). However, the used EV market is up 24.7 percent year over year.
As Trump's war on Iran in April 2026 sent world oil prices soaring and retail gas prices in the U.S. to spike well over $4.00 a gallon, a lot of people were regretting not buying an EV before the rebate program expired.
Worldwide, the demand for EVs has not abated and continues to grow every year, especially since the surge in world energy prices that resulted from Trump's Iran war.
According to data from Bloomburg financial, electric vehicle (EV) sales outside the U.S. are projected to reach approximately 21–23 million units in 2026, with the market share of new cars hitting over 28 percent globally. China remains the world leader in electric vehicle development and sales, accounting for 63 percent of worldwide sales. Sales of EVs in the European market have also risen to 21 percent.
So while our current administration has its head up its ass and shifts our energy policy into reverse, the rest of the world is moving full speed ahead in adopting EVs and green energy.
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