What Happens When the $7,500 EV Federal Tax Credit Ends?

Sep 3, 2025

If you’ve been waiting for the right moment to buy or lease an electric vehicle (EV), September 2025 may be the best time in years. That’s because the federal $7,500 EV federal tax credit, a program that has helped millions of Americans afford EVs, is scheduled to expire for many models on September 30, 2025. 

Across the country, dealerships are stacking incentives to clear inventory before the deadline. The result? Some of the most aggressive lease offers the EV market has ever seen, including one headline-grabbing deal that seems almost too good to believe. 

The $40/Month Kia Niro Lease 

Earlier this summer, The Wall Street Journal reported on a Colorado dealership offering a Kia Niro EV lease for just $40/month (before taxes). The figure sounds unreal, but it happened thanks to: 

• The full $7,500 EV federal tax credit applied up front. 
• State and local incentives unique to Colorado. 
• A motivated dealer eager to move cars before the credit disappears. 

This was a “perfect storm” of incentives, and while $40/month won’t be available to most shoppers, the story highlights just how deep the discounts can go in this final month of the credit. 

Other Great EV Deals on the Market 

That $40 lease is the exception but it underscores a bigger point: there are excellent deals to be had right now, even outside of Colorado. Across the U.S., dealers are advertising lease specials that would have been unthinkable just a year ago: 

• Volkswagen ID.4 – as low as $129/month in some markets with stacked incentives. 
• Hyundai IONIQ 5 – widely available for $149–$179/month. 
• Hyundai IONIQ 6 – reported around $169/month at New Jersey dealerships. 
• Chevy Equinox EV – advertised as low as $249/month. 

Most EV leases currently fall between $100–$300/month depending on model, trim, and region. Even at the high end of that range, these offers remain highly competitive compared to gas-powered crossovers and sedans in the same class. 

What Happens After September 30? 

When the EV federal tax credit expires: 

• Prices jump overnight – Without the $7,500 offset, many EVs will effectively cost thousands more starting in October. 
• Sales may slow temporarily – Analysts expect a dip in EV sales in Q4 2025 unless new incentives or dealer discounts are introduced. 
• Hybrids get a boost – Shoppers who can’t justify the higher cost of an EV will increasingly look toward hybrids and plug-in hybrids (PHEVs) as practical, reliable alternatives. 

The Rise of Hybrids and Plug-in Hybrids 

While EVs grab headlines, hybrids are enjoying a major comeback. Consider these recent trends: 

• Hybrids accounted for ~22% of U.S. light-vehicle sales in Q1 2025, up from 18% in first quarter 2024.
• Plug-in hybrids (PHEVs) now make up roughly 25% of global EV sales, giving buyers an electric commute with gasoline backup for longer trips. 
• Toyota recently topped hybrid reliability ratings with models like the Corolla, Yaris, and RAV4, reinforcing consumer confidence in hybrid technology. 

For many families, hybrids are proving to be the best of both worlds: affordable upfront, reliable long-term, and free of the charging anxiety that still deters some EV buyers. 

And with companies like Hybrid Battery 911—a Maryland-based, A+ BBB-rated provider specializing in hybrid battery replacement and reconditioning—keeping hybrids on the road has never been more convenient or cost-effective. 

Tips for Shoppers This Month 

1. Act early – Inventory is moving quickly as buyers rush to lock in incentives. 
2. Check eligibility – Not every EV qualifies for the credit; confirm your model. 
3. Compare lease vs. buy – Leasing often makes it easier to realize the credit. 
4. Factor in charging – Consider your local infrastructure before committing. 
5. Keep hybrids in the mix – For many households, hybrids remain the most cost-effective electrified option. 

Bottom Line 

The $7,500 federal EV tax credit has been a game-changer, and its expiration is driving a frenzy of last-minute deals. From eye-popping outliers like the $40 Kia Niro lease to widely available offers under $200/month, September 2025 is shaping up as one of the best months in history to shop for an EV. 

At the same time, hybrids and PHEVs are proving their staying power. They’re reliable, affordable, and well-supported by service providers like Hybrid Battery 911. Whether you chase a once-in-a-lifetime EV lease or invest in keeping your hybrid running strong, this month is a turning point in America’s shift toward electrified driving. 

About Hybrid Battery 911 

Hybrid Battery 911 is a trusted leader in hybrid battery replacement, reconditioning, and diagnostics. Accredited by the Better Business Bureau with an A+ rating, we're known for convenient mobile service, full battery pack replacements, and industry-leading warranties. Since 2017, Hybrid Battery 911 has helped thousands of drivers extend the life and reliability of their hybrid vehicles.