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The newly passed Big Beautiful Bill drives changes to individual benefits related to energy efficiency, including the repeal of green energy tax credits for energy vehicles (EVs). The Senate legislation, signed into law on Friday, eliminates a $7,500 tax credit for purchasing or leasing a new EV and a $4,000 credit for buying a used EV.
There’s Still Time
Consumers interested in purchasing an electric car and reducing their carbon footprint have only a short window left to do so, as the credits for electric and hybrid cars will end on September 30.
Through this date, consumers can still get up to a $7,500 tax credit for a new EV or $4,000 tax credit for a used EV, or 30% off the sale price, subject to income restrictions. Individual filers earning up to $75,000, head of household filers earning up to $112,500 and joint filers earning up to $150,000 qualify for the used EV tax credit, with income restrictions for the new EV tax credit as follows: $150,000 for single filers, $225,000 for head of household filers and $300,000 for joint filers.
Previously, the tax credit was set to expire on December 31, 2032.
EVs Are Still A Worthwhile Investment
Despite the tax credit termination, electric vehicles are still a worthwhile financial investment that can save you money over time.
Electric cars, on average, cost more upfront than gas-powered cars. Data from Kelley Blue Book shows that drivers can expect to pay roughly $2,800 more for a new EV than for a new gas-powered car. However, where auto owners often make up this difference is through fuel savings.
Electric cars cost 60% less to power than their gas-powered peers, according to a 2023 Consumer Reports study, and half as much to repair and maintain. An Argonne National Lab analysis also found that a fully electric car saves drivers up to $2,200 annually on fuel.
The longevity of electric vehicles also makes them a more optimal long-term investment compared to gas-powered counterparts. A 2022 Atlas Public Policy study revealed that for every major type of vehicle, EVs came out ahead over seven years, the average amount of time a driver keeps a car. EVs are also more energy-efficient and produce less carbon dioxide pollution than gas-powered automobiles. A Yale Climate Connections study found that in the U.S., driving an EV lowers CO2 pollution by two-thirds.
How To Save on EVs Even Without a Tax Credit
Certain credit cards offer cash back or points for electric charging stations, helping you stretch your dollar. If you miss out on the tax credit after September, consider signing up for an auxiliary card to help cut down on costs and put the savings toward maintenance. Here’s a list of credit cards that offer EV benefits:
- Alaska Airlines Visa Signature® credit card*: Earn unlimited 3 miles per dollar on eligible Alaska Airlines purchases, unlimited 2 miles per dollar on eligible gas, EV charging, cable, streaming services and local transit including ride share purchases and unlimited 1 mile per dollar on all other purchases.
- Bank of America® Customized Cash Rewards credit card: Earn 6% cash back for the first year in the eligible category of your choice, 2% cash back at grocery stores and wholesale clubs (up to $2,500 in combined choice category/grocery store/wholesale club quarterly purchases), and unlimited 1% cash back on all other purchases. After the first year from account opening, earn 3% cash back on purchases in your choice category and 2% cash back at grocery stores and wholesale clubs up to the quarterly maximum.
- Costco Anywhere Visa® Card by Citi*: Earn 5% cash back on gas at Costco and 4% cash back on eligible gas and EV charging purchases for the first combined $7,000 spent annually, 1% thereafter, 3% cash back on restaurants and eligible travel purchases, 2% cash back on purchases from Costco and Costco.com and 1% cash back on all other purchases. A Costco membership is required to apply.
- Sam’s Club® Mastercard®*: Earn 5% cash back rewards on eligible gas or EV purchases (up to $6,000 annually, then 1%), 3% cash back rewards on dining and takeout, 3% cash back at Sam’s Club for Plus Members and 1% cash back rewards on all other eligible purchases.
- U.S. Bank Altitude® Go Visa Signature® Card*: Earn 4 points per dollar on dining, takeout and restaurant delivery, 2 points per dollar at grocery stores, gas and EV charging stations (excludes discount stores, supercenters and wholesale clubs) and on streaming services and 1 point per dollar on all other eligible purchases.
- U.S. Bank Altitude® Connect Visa Signature® Card*: Earn 5 points per dollar on prepaid hotels and car rentals booked directly in the Altitude Rewards Center, 4 points per dollar on travel and at gas and EV charging stations on the first $1,000 each quarter, 2 points per dollar at grocery stores, dining and streaming services (excluding discount stores, supercenters and wholesale clubs) and 1 point per dollar on all other eligible purchases.
- U.S. Bank Cash+® Visa Signature® Card*: Earn 5% cash back on prepaid air, hotel and car reservations booked directly in the Rewards Travel Center, 5% cash back on your first $2,000 in combined eligible purchases each quarter on two categories of choice, 2% cash back on one everyday category such as gas stations, grocery stores or restaurants (excludes discount stores/supercenters and wholesale clubs), and 1% cash back on all other eligible purchases.
- Wells Fargo Autograph® Card (rates & fees) : Earn 3 points per dollar at restaurants, travel, gas stations, transit, popular streaming services and phone plans, 1 point per dollar on other purchases.
- Platinum Rewards Visa Signature® Card*: Earn 5 points per dollar spent on gas and electric vehicle charging stations, 3 points on groceries, restaurants, TV, radio, cable and streaming services and 1 point on all other purchases.
Another option is the FutureCard Visa® Debit Card*, which grants cardholders a whopping 10% cash back on eco-friendly purchases, including EV charging.
Bottom Line: EVs Are Still The Cars Of The Future
Electric cars still offer savings despite the tax credit cut introduced by the Big Beautiful Bill. They also represent a choice that builds a more equitable world. Smart spending with EV-friendly credit cards can help you recoup the initial larger investment and get ahead of the curve.
Find The Best Credit Cards For 2025
No single credit card is the best option for every family, every purchase or every budget. We’ve picked the best credit cards in a way designed to be the most helpful to the widest variety of readers.