Electric Cars Are Losing Their Appeal in California As Two Huge Laws Change This Month

California EV owners are about to lose two of the biggest carrots that made going electric feel like a no-brainer: the federal EV tax credit and solo access to carpool lanes. Both changes hit at the end of this month, and together they could make electric cars meaningfully less attractive for many Bay Area drivers. IRS

What’s changing on September 30, 2025

1) The federal EV tax credit ends

The $7,500 federal tax credit for new EVs and the $4,000 credit for used EVs end for vehicles acquired after September 30. The IRS’s guidance confirms the termination dates in the law passed this summer. Some limited transition relief applies if you have a binding contract by the deadline. IRS

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