U.S. States Boost EV Sales and Infrastructure as Federal Tax Credit Expires
Several U.S. states, led by Democrats, are boosting electric vehicle (EV) sales and charging infrastructure, responding to the federal EV tax credit expiration on September 30, 2025. California and Arizona fight to keep EV perks like carpool lane access, while Oregon explores mileage fees for E-vehicles. Meanwhile, a new tax credit for EVs priced under $25,000 has been introduced, covering 30% of the sale price, capped at $4,000, and including second-hand units.
The U.S. EV market is gaining momentum. In 2023, battery electric vehicle market share reached 7.6%, with sales growing by 29% in the last quarter of the past year. The EU, however, leads with a 14.6% market share and 1.5 million EV sales in 2023, a 37% increase from 2022. Tesla, with 1.8 million deliveries, maintained its global EV market leadership, capturing a 55% share in the U.S. The new EV tax credit, effective January 1, 2023, increased the subsidy to $7,500 and extended the deadline to December 2032. It's now available to individuals earning up to $75,000 annually or heads of households up to $112,500.
The federal EV tax credit threshold of 200,000 units sold per manufacturer was eliminated, making heavyweights like GM, Tesla, and Toyota eligible again. States are stepping in to support EV adoption, with Oregon considering mileage fees for E-vehicles to balance budgets affected by reduced fuel taxes.
U.S. states are actively promoting EV sales and expanding charging infrastructure, responding to the federal EV tax credit expiration. A new tax credit for affordable EVs has been introduced, and the U.S. market is showing strong growth. With Tesla leading the global EV market and the EU ahead in market share, the U.S. is working to catch up and support wider EV adoption.
