Federal EV Credit Out, Leaving Blue State Subsidies
By Kennedy Maize -- October 8, 2025
“A few states are bucking the national trend to prop up, temporarily, EV production. Domestic output is falling, which leaves foreign EV makers. The states do not have the federal “buy American” limit that applies to the batteries and internals of qualified EVs, however, which means that Japan’s Toyota bZ4x and Belgium’s Volvo’s EX30 could be the subsidized winners in an overall declining market.”
Biden administration $7,500 tax subsidy for purchasing electric vehicles, which helped propel a boom in battery electric vehicles (EVs), expired effective October 1st pursuant to the Big Beautiful Bill. Trump has long professed a distaste for this automotive technology, except for his EV photo-op in July when he turned the White House south lawn into a new car lot for Tesla cars to promote Elon and DOGE. (One wonders if Trump actually paid for the bright red, $90,000 Model S that he “bought” on the spot–maybe not.)
Despite the expiration of the federal support for EVs, Inside EVs reports that “a small number of U.S. states will continue to offer their own regional tax credits, rebates, and incentives, allowing their residents to continue offsetting the high cost of EVs compared to gasoline vehicles.”
Colorado
https://www.masterresource.org/electric-vehicles/federal-ev-credit-out-states-subsidies/
