The States that Stand to Lose the Most with the End of the EV Tax Credit
Ending the EV tax credit may seismically shift car buyers, according to report.By Natalie NeffPublished: Sep 17, 2025 12:51 PM EDT
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The federal EV tax credit—set to expire September 30, 2025—has been a promoter of electric vehicle sales in the US for years, but just exactly who will be affected by its demise is a question the folks at LendingTree were curious to find out.
The credit has helped offset high up-front EV prices, delivered major relief at point-of-sale, and in many cases pushed skeptical buyers over the line. With it set to disappear, the scale of lost purchasing power is enormous.
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Analysis of IRS data for tax year 2023 shows that when the credit vanishes, consumers (and automakers) in certain states stand to lose significantly more than others.
In 2023, Americans filed nearly 488,000 new-EV tax credit claims, totaling about $3.3 billion, plus another roughly 28,000 used-EV claims (worth about $95.6 million). The average new EV buyer pocketed about $6,709; used EV purchasers claimed nearly $3,392.
LendingTree found that California would absorb the biggest hit if the credit ends—an estimated $1.1 billion in lost incentives, new and used combined. Behind it: Texas (about $272.7 million) and Florida (about $201.4 million).Images By Tang Ming Tung//Getty Images
States also vary dramatically by per-capita claims: California, Washington, and New Jersey lead; states like Mississippi, North Dakota, and Louisiana trail far behind.
The loss of this credit isn’t just about cash—it’s about momentum. Nationwide, EV registrations comprised only 1.7% of light-duty vehicles in 2023 (up from 1.2% in 2022), showing growth but still a tiny slice of market share. Sales of new EVs slipped: Q2 2025 saw a 6.3% drop from the same quarter a year earlier. LendingTree warns that ending the credit could further slow demand and make EVs even harder to sell in states without strong local incentives or charging infrastructure.
States that filed most returns claiming new EV tax credits
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For buyers, this means now may be one of the last windows to lock in maximum savings. For automakers, sales forecasts may need sharp revisions. And for states without robust EV policy backstops, the loss could chill adoption. Ending the credit may shift the EV landscape—not just prices, but who buys and where they buy from.
But for a couple of sketchy, short-lived gigs right out of college, Natalie Neff has had the good fortune to spend the entirety of her professional life around cars. A 2017 Honda Ridgeline, 1972 VW Beetle, 1999 Ducati Monster and a well-loved purple-and-white five-speed Schwinn currently call her garage home.
Children Purportedly Trapped Inside Tesla Model Y EVs Prompt NHTSA Probe
Parent complaints about the popular EV’s door handles failing have led some having to smash windows to get inside.By Natalie NeffPublished: Sep 16, 2025 2:50 PM EDTSave Article
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Tesla is facing fresh scrutiny from US safety regulators, this time over electric door handles.
The National Highway Traffic Safety Administration (NHTSA) announced Tuesday that it has opened a probe into nearly 174,000 Model Y crossovers from 2021 following nine complaints that the exterior handles failed without warning—sometimes with children trapped inside.
In four of the reported cases, owners say they had to smash windows to free passengers. While Model Y doors can be opened manually from the inside, NHTSA notes that smaller children may not be able to reach or operate those levers. The agency’s initial review suggested the failures may occur when the locks receive insufficient voltage, a problem not flagged by the vehicle’s warning systems.
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NHTSA underscored the risks in stark terms: “An occupant who remains inside a vehicle in this condition may be unable to be rapidly retrieved by persons outside of the vehicle. Entrapment in a vehicle is particularly concerning in emergency situations, such as when children are entrapped in a hot vehicle.” The preliminary investigation will determine the scope and severity of the defect before deciding whether to escalate to a recall.
The probe comes as Tesla grapples with mounting challenges. US market share has slipped to its lowest point in nearly eight years, according to Cox Automotive, and deliveries are expected to decline for a second straight year. Consumer unease with Elon Musk, combined with stalled plans for a truly affordable model, has dampened demand. More rivals are filling the EV space with competitive products, eroding Tesla’s early dominance.
This isn’t Tesla’s first run-in with regulators. NHTSA already has multiple investigations open into the company’s driver assistance systems, including Autopilot. But the door-handle probe underscores a different kind of concern: not advanced software, but basic safety.
For Tesla, which still relies heavily on Model Y sales as its bread-and-butter product, the outcome could mean yet another costly recall.
But for a couple of sketchy, short-lived gigs right out of college, Natalie Neff has had the good fortune to spend the entirety of her professional life around cars. A 2017 Honda Ridgeline, 1972 VW Beetle, 1999 Ducati Monster and a well-loved purple-and-white five-speed Schwinn currently call her garage home.
