What The One Big Beautiful Bill Means For Your EV Purchase

As Your EVerything EV Dealer, we want to ensure that you have as much information as possible to understand the recent changes to the federal EV tax credits and refunds announced by the Trump administration.

The One Big Beautiful Bill Act (OBBBA) was signed into law in July 2025 and it will impact federal tax credits that have been offered on electric vehicles (EVs) under the Inflation Reduction Act.  While there are many parts of the act that will have a variety of tax implications, for the purposes of this article, we are going to focus on the EV tax incentives specifically.

As it stands now, on September 30, 2025, federal tax credits on new and used electric vehicles will no longer be available for both passenger and commercial EVs. For new passenger EVs, that incentive could be as high as $7,500, and for used EVs, it could be as much as $4,000, that will no longer be offered.

The OBBBA does offer, however, other incentives for the purchase of both EV and gasoline-powered vehicles that have final assembly in the United States. Qualifying taxpayers may deduct up to $10,000 in interest annually on loans for new, personal-use vehicles that have final assembly in the United States.  The vehicle must be purchased, not leased, between January 1, 2025 and December 31, 2028, and it must be new-not used.  General Motors (GM) is committed to growing domestic production to meet the anticipated increase in demand for domestic vehicles. GM has already committed approximately $4 billion across three U.S. manufacturing locations in Michigan, Texas, and Indiana to ensure our most popular Chevy models will be available for purchase and eligible for this benefit.

While the federal tax incentives on EVs are coming to an end, it is very important to note that this bill does not impact incentives offered at the state level.  Incentives that are offered by the State of Connecticut will be determined by the state, not this bill. Currently, Connecticut has The Connecticut Hydrogen and Electric Automobile Purchase Rebate (CHEAPR), which offers incentives to Connecticut residents who purchase or lease an eligible new or used battery electric (BEV) or, plug-in hybrid electric (PHEV) vehicle, from a licensed Connecticut automobile dealership or original equipment manufacturer.  While this rebate is still in effect, as of August 1, 2025, Connecticut did significantly reduce it! The standard CHEAPR rebate for a BEV vehicle, which is a vehicle that obtains all of its power from a rechargeable battery pack, has been reduced from $1,500 to $500!

We are, however, proud to say that our Chevrolet Equinox EV and our Blazer EV are both on the eligible BEV CHEAPR vehicle list. Meaning, that both our Equinox and Blazer EVs could qualify for that now $500 rebate if all other requirements are satisfied. In order for any of these vehicles to qualify for the CHEAPR incentive, the MSRP of the vehicle must not exceed $50,000.

All of this information, and more, can be found through this link More CHEAPR Information  including rebate amounts and the full eligible vehicles list.

If you have been thinking about leasing or purchasing an EV, time is of the essence to take advantage of both federal and state tax credits while they are still available!  Richard Chevrolet has numerous Equinox and Blazer EVs in stock and ready to go!  Come down to see us before September 30 when the federal credits will be gone! For more information and specific details about how EV tax credits and rebates will impact you, it is always best to consult your accountant or tax professional.

Click Here For Our Equinox & Blazer EV Inventory