[Regulatory Update] US clean-vehicle tax credits end after 30 September 2025 — changing the tax assumptions underpinning the EV market
In the EV market, sales conditions are directly affected not only by product performance and regulation but also by policy incentives such as tax credits. EV manufacturers, component suppliers and dealers need to reassess their price competitiveness and sales plans following this tax change; when assessing the impact on business, companies need to look at regulation, subsidies and tax policy together as a single policy environment, rather than emissions regulation alone.
Related Regulation Information
U.S. Inflation Reduction Act (IRA) Clean Energy Tax Incentives — Accelerated Reduction Under the One Big Beautiful Bill Act
The U.S. Inflation Reduction Act (IRA), enacted in August 2022, established a suite of tax credits (including the Section 30D Clean Vehicle Tax Credit and the Section 45X Advanced Manufacturing Production Tax Credit) designed to accelerate clean energy manufacturing—EVs, batteries, solar, wind, and critical minerals—within North America. However, the "One Big Beautiful Bill Act" (OBBBA), enacted on July 4, 2025, brought forward the termination or reduction of many of these clean energy tax credits. In particular, the Section 30D Clean Vehicle Tax Credit was terminated early as of December 31, 2025, and the Section 45X Advanced Manufacturing Production Tax Credit begins phasing down starting in 2027. As a result, the framework supporting U.S. clean energy investment and manufacturing is undergoing fundamental restructuring.
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