The federal electric vehicle tax credit, which provided up to $7,500 of credit for purchasing new electric vehicles (EVs) and $4,000 of credit for used EVs, terminated on Sept. 30, 2025. In the weeks following, the rebate’s end has already begun impacting Bay Area residents.
The tax credit’s expiration was a part of the One Big Beautiful Bill Act, which was passed by Congress and signed by President Donald Trump on July 3, 2025. The bill did away with clean energy incentives in commercial and domestic sectors, leading to predicted delays or cancellations of proposed clean energy projects. This comes following months of Trump administration policies lowering environmental protection standards and subsidizing the oil and gas industries.
Despite significant governmental backtracking on environmental and climate policy, EVs were—and still are—an impactful way to reduce fossil fuel emissions on an individual level, something that many M-A students and staff have come to appreciate. “I like not having a gas bill. I like having a quiet car. And I like being a little snooty and feeling better about myself about helping the environment,” eight-year Nissan Leaf owner and filmmaking teacher John Giambruno said.
When Giambruno purchased his Leaf in 2017, he received nearly $10,000 in combined federal and state tax credits. Giambruno was interested in buying another EV but is now hesitant, with the federal tax credit no longer in place. The cost-benefit calculations for prospective buyers have changed since California ended its state rebate in November 2023. The state could not fund the tax credit amidst such high demand for EVs, deciding to focus on subsidizing EV accessibility for low-income buyers.
Additionally, on October 1, 2025, the California Clean Air Vehicle (CAV) Decal program also ended, meaning that EVs cannot drive for free in the High-Occupancy Vehicle lane on freeways without meeting the standard vehicle occupancy requirement of two or more people, eliminating another major appeal of buying EVs.
Because of these changes, many buyers decided to take advantage of the EV rebate before it ended. July, August, and September saw record-breaking sales in the national EV market—up 40.7% from the spring—according to sales technology company Cox Automotive.
Though some articles fearfully projected the end of the EV industry after the end of the tax credit, sales are more likely to slow down with so much demand having been met in the past few months.
“A lot of people have this mindset that the EV tax credit is going to completely kill the EV industry,” a Rivian salesperson with 10 years of experience in the industry said. “It might kill some companies that can’t make EVs, can’t make EVs profitable, and they’re losing money on every vehicle. But to the companies that are already there, Tesla and Rivian, for example, they’re gonna be just fine.”
California energy supplier PG&E and a few other organizations continue to offer small incentives, and companies like General Motors and Ford have educator appreciation programs providing special discounts on purchases and leases for teachers. Still, hope for industry sales recovery lies in company-specific incentives and the release of more affordable products on the market. Updated versions of the Tesla Model Y and Model 3, Nissan Leaf, Chevy Bolt, and new models like the Kia EV3 are scheduled for release in late 2025 and 2026, expanding accessibly-priced options.
Despite the end of the tax rebate, there are still many benefits to owning EVs. “I think it’s funny that this EV incentive is ending, and people are losing their minds so much. You save so much money on maintenance, so much money on gas. The enjoyment of driving these cars, they accelerate better, they are smoother. They have better software than anything out there. So the car improves over time, like a computer would or a cell phone would,” the 10-year EV salesperson said.
The Bay Area and San Mateo County are historically EV-enthusiastic areas, with high adoption rates. The Bay Area is considered a leader in the national shift to electric vehicles. This growth is fueled partly by the abundance of charging infrastructure in the region, eliminating many of the logistical barriers to owning an EV.
“The Tesla is very practical. I don’t have to spend as much money on gas, and there’s a charging station about every 20 minutes, so there’s no problem finding a charging station,” junior Charles Mura said.
The price gap between electric vehicles and gas cars has been decreasing in recent years, as the demand for electric vehicles has increased. While the initial price of an average electric car is still more expensive than a gas car, gas and maintenance for gas cars are significantly more expensive than electricity. The net cost minimization of electric cars most benefits long-distance commuters, including many teachers driving in from San Francisco and the East Bay.
“I just remember at the time I was pregnant, we needed to get a bigger car, and because we were commuting so much, we were like, ‘okay, let’s just invest in at least one of our cars to be an electric car,’” Administrative Vice Principal Elaine Rios said.
“If you have two cars in your family, one should be an EV, hands down, no argument,” Giambruno said.
For younger generations facing a future impacted by climate change, EVs appeal for their positive environmental impacts. “There is still hope for the environment, but not if we keep putting it on the back burner. We need to keep pushing to prioritize the health of our planet for future generations,” senior Louisa Pflaum said.
It’s clear that people will remain committed to and interested in EVs despite the end of the tax rebate.
