1. Tax credits are not the strongest drivers of EV adoption.

Plug In America’s EV Driver Survey consistently finds that the single strongest economic driver of EV adoption is access to inexpensive home charging. Additionally, there are numerous examples (Germany/Tesla) of EV sales rebounding after tax credits are eliminated.

For instance, Germany’s EV market continued to grow after a short-term drop in sales. Another example from the U.S. is the prior version of the federal EV tax credit. Until 2022, the federal tax credit was available until a manufacturer sold 200,000 eligible models, after which it was phased out over time. In the graph below, you’ll see that Tesla sales increased once people became aware that access to the $7,500 tax credit was about to end. Sales dropped briefly once the tax credits were gone. The sales drop only lasts for a quarter before sales increase again, demonstrating that policy can increase EV adoption, but losing incentives does not mean the end of EVs.

2. Charging is moving ahead.

EV charging is expanding. Despite the interruption to the National Electric Vehicle Infrastructure (NEVI) program, there has been a steady expansion of EV charging infrastructure being built with private investment. There are now over 230,000 public EV charging ports nationwide. Under pressure from litigation, the NEVI program was restarted. Fifty states and territories have submitted plans so far, and 41 have been approved under the new guidance. Funds are now being released to states to build EV charging stations every 50 miles on interstates across the country. The remaining funds can be used to expand community charging, making it easier than ever to charge wherever you live, shop, work, and play. 

3. The used EV market is taking off.

Thanks to the ability to apply the commercial clean vehicle tax credit (45W) to consumer leases, nearly three out of four EV transactions in the last year were leases. Over the next three years, about 1 million EVs are expected to come off leases and enter the used EV market. Used EVs cost about the same as used gas cars, but with much less maintenance and lower operating costs. EVs are gaining a reputation for being durable and reliable, and batteries are lasting much longer than originally expected. Additionally, EVs offer excellent battery and drivetrain warranties of at least 8 years/100,000 miles.

4. The rest of the world is moving forward with EVs.

EV sales are taking off all over the world. While EV market share is growing rapidly in places you might expect, like Europe and China, emerging markets are also embracing EVs. EVs account for over 40% of the market share in Ethiopia, Tajikistan, Djibouti, Sri Lanka, and Nepal. This year, more than one in four cars sold worldwide will be electric.

5. Manufacturers know that EVs are the future.

All of the major automakers currently operating in the U.S. are multinational corporations. Since the rest of the world is clearly transitioning to EVs, they realize that if they don’t step up their electrification game, they will soon be obsolete. That’s why they are joining forces to build a national charging network, offering discounts on EVs to help offset the loss of tax credits, and investing billions in EV platforms.

6. EV innovation continues to improve. Battery prices continue to drop.

The price for an average battery pack has fallen by 50% since 2019. It is expected to continue to fall. Technological innovation enables higher energy density in batteries, and safer, more durable batteries are being featured in an increasing number of vehicles each year. This means that EVs continue to improve and become increasingly affordable.

7. EVs can make electricity less expensive.

Yup, you heard correctly. Since EVs are a mobile, flexible load, they can enable utilities to sell more electricity without the need for costly grid upgrades. A study by Synapse found that EVs contribute much more in utility revenue than costs in all 50 states. During this current affordability crisis, EVs can help make electric rates lower for everyone, not just EV drivers.

8. EVs are replacing gas cars.

Regardless of what you may hear in the media, one fact is clear. Over the last six years, sales of gas cars have declined by approximately six million vehicles, while EV sales have increased by one million. We’ve reached an inflection point. EVs are here to stay because they are simply better vehicles. Hands down, those who try EVs are quickly convinced that they are superior vehicles. If you can charge at home, they are far more convenient. They cost less to own and operate, are fun to drive, and produce zero tailpipe pollution. 

9. EV education sells EVs.

Plug In America surveyed thousands of EV drivers and found two key takeaways. First, many of the concerns people have about driving an EV fade away when they switch to an EV. Concerns about cost, range, and battery durability are replaced with confidence once they’ve spent some time in the driver’s seat. The survey also showed that between 2024 and 2025, consumers are becoming more familiar with EVs. The concerns that people sometimes have before driving an EV were less prevalent in 2025, indicating that individuals are feeling more confident about EVs before even purchasing one.

A Consumer Reports survey found that the more direct experience consumers have with EVs, the more likely they are to be interested in buying or leasing one. So, if a consumer has a neighbor or cousin who drives an EV, they are more likely to consider one for themself. With nearly 6 million EVs on U.S.roads today, it’s easier than ever to become familiar with EVs. Be sure to tell your friends and neighbors how much you love your EV.

10. EV drivers love their cars.

Surveys of EV drivers, including the Plug In America EV Driver Survey, McKinsey Annual Mobility Survey, and the Global EV Drivers Alliance Survey, consistently find that at least 9 out of 10 EV drivers love their vehicles and expect their next vehicle to be electric. 

In light of the federal policy changes that have shifted support away from clean vehicles, we view this as a speed bump, but not the end of the road. EVs continue to win on their own merits. Once drivers experience the superior driving performance and their fuel and maintenance savings, they breathe easy knowing that the road ahead is electric.

The post The Road Ahead for Electric Vehicles appeared first on Plug In America.

The most significant impacts

1. Termination of consumer clean vehicle tax credits – September 30

The last reconciliation package passed in 2022 reauthorized and expanded consumer tax credits for new, used, and commercial electric vehicles. It also extended and expanded tax credits for building out EV charging stations, including incentives for home chargers and large commercial projects. Tax credits were designed to be user-friendly, as upfront incentives and could be used by those without tax liability, including consumers and tax-exempt entities like municipalities, states, and nonprofits. The tax credits were originally set to expire at the end of 2032, but will now expire on September 30, 2025.

How this hurts EV adoption

Eliminating these tax credits hurts EV adoption in multiple ways. Over the course of more than 100 years, automakers have optimized the process of manufacturing internal combustion engines. Switching to an entirely new technology requires investment and a learning curve that creates some inefficiencies. This generally results in a higher upfront cost of EVs. 

These tax credits entice buyers to try out electric technology while simultaneously offering a bit of a buffer to automakers to account for the losses associated with making the switch. While EVs save drivers money over time through fuel and maintenance savings, repealing these tax credits makes it harder for consumers–especially working-class consumers–to afford the upfront cost of an EV. Terminating these tax credits will hurt consumers who want to drive electric vehicles while making it harder for legacy automakers to make the switch to electric. 

2. Additional restrictions on manufacturing tax credits

Another important tax credit for EV adoption is the Advanced Manufacturing Production Tax Credit. This tax credit supports the build-out of a domestic supply chain for EV batteries and components. Even though lithium-ion batteries were first developed in the U.S., China invested heavily in the mass production of lithium-ion batteries as traction batteries and now leads the world in battery production and technology. It also dominates the global mineral supply and processing for these batteries. 

The Act modifies the Advanced Manufacturing Production Tax Credit to restrict access to credits for taxpayers with prohibited foreign entity relationships. This means that automakers interested in relying on material assistance from China to develop battery plants in the U.S. to manufacture batteries like Lithium Iron Phosphate (LFP) batteries may not be able to access the tax credits. (LFP batteries are a popular, stable, durable, inexpensive type of EV battery that don’t need cobalt or nickel.)

How this hurts EV adoption

One in four vehicles sold globally this year will have a plug. For U.S. automakers to remain globally competitive, they need to manufacture EVs and build a domestic supply chain that includes EV batteries. Placing additional restrictions on these tax credits that prevent the credits from being used to reestablish important battery technology in the U.S. will hamstring the U.S. auto industry in its transition to domestic EV and battery manufacturing.

3. Elimination of monetary penalties for the Corporate Average Fuel Economy (CAFE) Standards

CAFE standards were passed by Congress in 1975 to address the oil crisis by requiring vehicles to be more efficient. Since then, the average fuel economy of vehicles has nearly tripled, saving trillions of gallons of gasoline. More efficient vehicles save drivers hundreds of dollars each year in fuel costs and directly reduce tailpipe pollution and climate-changing emissions. The reconciliation bill kneecaps these standards by reducing the penalties to $0, for noncompliance. 

How this hurts EV adoption

Eliminating penalties for noncompliance hurts EV adoption in two ways. First, the way CAFE standards work is that automakers must meet a minimum average fuel economy across their entire fleet. As mentioned earlier, automakers transitioning to EVs typically lose money on them at first. But EVs have been powerful tools in meeting CAFE compliance targets. Since EVs are so efficient, they can drive up fleet efficiency averages, allowing automakers flexibility in meeting the standards.  

The second way this change hurts EV adoption is that EV-only automakers will take a huge hit from the loss of credit revenues. Automakers that manufacture gas guzzlers and don’t meet the standards buy credits from automakers that do meet these standards. EV-only manufacturers like Rivian, Tesla, and Lucid rely heavily on these credits for revenue to help them establish their fledgling businesses. This year, credit sales will contribute $2.17 billion to Tesla’s bottom line. In 2024, Rivian generated $325 million in revenue from regulatory credits, which helped the company remain financially viable as it gained traction.

Direct impacts

4. Cancellation of remaining funds from Department of Energy loan programs

Congress rescinded, or took back, any funds that have not been committed through signed contracts from the Advanced Technology Vehicles Manufacturing (ATVM) loan program.

How this hurts EV adoption

Loans like these support major investments in U.S. EV manufacturing. The loans’ effects catalyze private capital to build facilities that create jobs, develop local economies, and make EVs less expensive for consumers. One of these DOE loans helped Rivian build its Georgia manufacturing site. General Motors used one of the loans to work with LG Energy Solution to establish a battery plant to manufacture Ultium battery cells. Ford, Nissan, and Tesla have also used these loans to advance cleaner vehicle technology manufacturing. Companies that were planning on using these loans to build manufacturing facilities, but have not yet signed agreements, are out of luck, and the companies and communities relying on the jobs from these plants will suffer.

5. Clawback of uncontracted funding for the EPA Clean Heavy-Duty Vehicle program

This program supports the replacement of diesel heavy-duty vehicles with electric heavy-duty vehicles, including electric school buses across the country, but particularly in communities with poor air quality. 

How this hurts EV adoption

Heavy-duty vehicles only make up about 10% of vehicles on the road, but they produce 28% of greenhouse gas emissions and 57% percent of particulate matter emissions, which cause serious health impacts. These pollutants disproportionately affect the health of people living in lower-income neighborhoods and communities of color. The market for heavy-duty electric vehicles is less established than the light-duty EV market, and providing funding to support the heavy-duty clean vehicle industry while reducing pollution in the hardest-hit areas is a win-win. Without this funding, EV manufacturers go without support, and more heavy-duty diesel vehicles get replaced with heavy-duty diesel vehicles, not EVs, keeping air quality harmful in many places.

6. Repealed authorization for Greenhouse Gas Reduction Funds (GGRF) and rescission (clawback) of unobligated program funding 

The GGRF was designed to support disadvantaged communities that are disproportionately affected by pollution. The program provided resources for clean energy, including electric transportation. 

How this hurts EV adoption

Eliminating unobligated funds from GGRF removes funding for transportation electrification in the communities that need it most. It also takes away funding that can be directly used to purchase EVs or install infrastructure in these communities.

7. Cancellation of any remaining funds for Climate Pollution Reduction Grants

These grants can be used to electrify vehicles to reduce pollution in states, cities, tribes, and territories.  

How this hurts EV adoption

This removes Congressionally-approved federal funding to address pollution, air quality, and climate issues through EV and charging infrastructure investments. It means fewer EVs will be purchased and fewer chargers installed in cities, states, tribes, and territories. Not only does this directly reduce EV sales, but the lack of charging infrastructure investment and buildout erodes consumer confidence in driving electric vehicles and poses a barrier to EV adoption. 

8. Clawback of unobligated funding for Environmental and Climate Justice Block Grants

Electric vehicle and infrastructure projects that benefit disadvantaged communities were eligible for funding through this program. 

How this hurts EV adoption 

Eliminating support for projects that include vehicle electrification directly reduces EV adoption. 

9. Elimination of additional funds for low-income and disadvantaged communities appropriated through the Diesel Emissions Reductions Act (DERA) program

The Inflation Reduction Act included $60 million of funding specifically to reduce diesel emissions from trucks and vehicles in disproportionately impacted communities, typically lower-income communities and communities where people of color live, to address the negative health impacts of vehicle pollution in these communities. Vehicle electrification projects are eligible for these grants. 

How this hurts EV adoption

Similar to the answer to No. 5, this rescinded or clawed-back funding disrupts programs that transition dirty diesel vehicles to clean electric vehicles. This means that older, high-polluting vehicles will stay on the roads longer and that fledgling heavy-duty electric vehicle manufacturers will sell fewer vehicles. 

10. Cancellation of additional funding for GSA Emerging Technologies.

This includes funds that can be used for the electrification of the federal government fleets. 

How this hurts EV adoption

The General Services Administration manages over 650,000 vehicles. Based on EVs’ cost savings and reduced maintenance, the vast majority of these should be electric. Removing incentives to electrify this massive fleet slows EV adoption and makes the government more reliant on oil and gas. It also eliminates an incentive to install charging infrastructure, which supports range confidence and drives EV adoption.

Indirect impacts

11. Termination of Clean Energy Tax Credits 

While the termination of solar and wind tax credits doesn’t directly impact EV sales, they are likely to slow EV market growth indirectly. Solar photovoltaics and onshore wind generation are the least expensive options for electricity generation today. By withdrawing subsidies for these options, affordable clean energy capacity will decline, and electricity prices will become more expensive. Numerous analyses predict U.S. household electricity expenses to go up by between $78 and $192 annually. 

How this hurts EV adoption

One of the big selling points of electric vehicles is that they cost less to fuel with electricity. If electricity costs rise and gas prices stay low, EV cost savings are reduced; these cost savings are a major driver of EV adoption. Rooftop solar tax credits are also being cancelled. EV drivers are three times more likely than gas car drivers to have home solar panels. We hear from EV drivers that they love being energy-independent when they power their cars with energy they create. Eliminating tax credits on solar panels will remove an incentive for consumer clean energy investments and clean vehicles at the same time. 

12. Elimination of unspent funds for programs to support the electric grid 

These include loan programs for Energy Infrastructure Reinvestment and Transmission Facility Financing, Grants to Facilitate the Siting of Interstate Electricity Transmission Lines, and Interregional and Offshore Wind Electricity Transmission Planning, Modeling, and Analysis. 

The rescission of the Tribal Energy Loan Guarantee Program will undermine consenting Tribal energy development organizations’ efforts to grow technical capacity to develop energy resources on Tribal lands, integrate energy resources, and build resources for energy-related environmental programs. 

How this hurts EV adoption

Similar to the repeal of solar and wind tax credits, this will lead to higher energy costs and will reduce cost savings from driving electric if gas prices continue to stay low. 

The kicker

American taxpayers spend roughly $20 billion each year to subsidize the oil and gas industry through tax breaks and consumer subsidies for things like home heating oil. 

In addition to eliminating clean energy subsidies and programs, this bill handed oil and gas drillers a major victory by directing the IRS to factor “intangible drilling costs” into corporate tax liabilities. According to Kingdom Exploration: 

The 2025 One Big Beautiful Bill Act transforms oil and gas investing by allowing 100% immediate tax write-off of working interest investments against any income source. This unprecedented tax incentive makes oil well investments one of the most powerful wealth-building and tax-reduction strategies available to high-income earners.

This is expected to cost taxpayers an additional $1.1 billion in lost tax revenue, as it effectively allows oil and gas drillers to avoid the Corporate Alternative Minimum Tax completely. In addition, the bill mandates oil and gas lease sales and requires lease auctions in Alaska at least four times over the next 10 years. The bill allows oil and gas companies to leap ahead in line and expedite permits by paying a fee,  and discounts the royalty rates that oil and gas companies pay to drill and extract on public lands to the lowest levels in nearly two decades. The bill also adds $171 million to the taxpayers’ bills to buy crude oil from oil companies to refill the Strategic Petroleum Reserve.

But, EVs are here to stay

In spite of the regressive, environmentally, economically, and socially harmful provisions in this bill, there are a few things we are optimistic about. Plug In America’s 2025 EV Driver Survey was recently published, and it showed that EV loyalty continues to grow among EV drivers. EV drivers consistently love their cars, and this year, we saw more younger EV drivers join the fan club. Nearly 92% of EV driver respondents said it is likely or very likely their next vehicle will be an EV, an increase from the 89% of EV driver respondents who said the same last year.

We also found that as people are exposed to EVs more, they become more likely to purchase or lease one. So, sharing your EV adventures with neighbors and family members is key to accelerating EV adoption. Plus, our survey found that once drivers get their own EV, the vast majority of concerns they had about batteries, range, technology, reliability, and cost fade. 

The rest of the world is moving to EVs. China now sells more EVs each year than all vehicles sold in the U.S., including gas-powered vehicles. This bill will isolate the United States and cede leadership on clean energy and EVs to more ambitious countries. Still, the global momentum of clean energy and clean vehicles will continue. The U.S. will eventually follow along, sacrificing this opportunity to address climate change, reduce pollution and related public health damages and costs, build the economy, catalyze innovation, and create millions of good-paying jobs, making it more likely that we will buy future vehicles from other countries. 

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• People will lose hundreds of thousands of jobs, and companies will lose billions of dollars in investments. Since January, uncertainty about federal support for clean energy projects has cost $15.5 billion in investments and nearly 12,000 lost jobs. 
• American auto manufacturers will fall behind as the rest of the world transitions to electric. The future of the auto industry is up for grabs, and the future of the auto industry is electric. 
• Innovation will stall, and with it the burgeoning industries and companies in EV-adjacent spaces like battery recycling. The tax credits help build domestic supply chains and energy security.
• U.S. drivers will be shackled to expensive oil and gas, which also leads to more pollution and health problems.

Businesses and consumers need certainty to move forward. The EV tax credits work and are carefully designed to ensure responsible consumer use and support manufacturing and supply chain development.

Because cutting the tax credits would harm consumers and businesses, major auto retailers like Carmax and Carvana, individual dealers, and other automotive stakeholders have signed open letters to Congress, calling for them to keep the suite of EV tax credits.  

This letter was sent to the House of Representatives on July 2, 2025. Other car dealerships and automotive principals may sign the open letter here. 

Dear Members of Congress,

We are auto dealerships and supporters from across the country who share a deep commitment to the customers and communities that we serve. We urge you to reject the provisions in the budget reconciliation process that would increase costs for Americans who want to drive electric vehicles.

For years, dealerships like ours have invested billions of dollars as small businesses to serve our communities, to improve EV education, and offer exceptional service.

We need a stable and consistent market for our dealerships to plan, invest, and grow. Recent attempts to abruptly roll back key EV-related Inflation Reduction Act tax credits pose a serious threat to our business continuity and the industry’s long-term investments based on previous market signals and American leadership. Collectively, changes on such a rapid timeline would introduce significant uncertainty and deter investment.

We urge Congress to consider moderation on the pace of overhauling the critical tax credits that our customers are counting on for new and used electric vehicles and to deploy electric vehicle chargers. 

Used EV rebates in particular have provided a valuable bridge for working- and middle-class Americans. For car dealerships, these time-of-sale rebates have enabled us to better serve our customers and expand our businesses. Many of us have built substantial used EV businesses in markets with a lower cost of living, selling to customers who can then reduce their monthly household costs. For many of our working-class customers, the used EV rebate becomes the down payment that enables a vehicle purchase at all.

The following incentives are valuable for our businesses and must continue, even in a reduced form, for at least the next several years:

• 25E – Credit for Previously-Owned Clean Vehicles;
• 30C – Alternative Fuel Vehicle Refueling Property Credit;
• 30D – Clean Vehicle Credit;
• 45W – Credit for Qualified Commercial Clean Vehicles;
• 45X – Advanced Manufacturing Production Tax Credit.

A gradual sunset of the EV-related rebates, rather than an abrupt repeal, is essential to serve the interests of American consumers as well as car dealerships and the broader auto industry. A slow phase-out would ensure market stability. Sudden elimination will disrupt the used car market, a backbone of the American economy. A multi-year transitional period would also provide the opportunity for Americans to continue adopting cleaner vehicles more affordably. Finally, many independent and family-owned dealerships are depending on the current incentive structure to remain competitive. An immediate repeal could disproportionately affect these businesses, reducing jobs and opportunities in communities nationwide.

A report from the International Council on Clean Transportation forecasts that repealing provisions from the Inflation Reduction Act would risk 130,000 jobs associated with auto manufacturing, plus an additional 310,000 indirectly related jobs, by 2030 in the U.S. 

Omitting the EV Registration Penalty is Right 

The House initially proposed an annual $250 EV and $100 hybrid registration fee from the Transportation and Infrastructure Committee. These fees would be excessively punitive and unfair to drivers. While Americans’ use of the transportation system varies, the average fuel consumption per light-duty vehicle in 2023 was 447 gallons. At the current federal gas tax rate of 18.4 cents per gallon, the average light-duty vehicle would have paid only $82.25 in federal taxes to federal trust funds that year. Combined with state EV fees, which are similarly high compared to state gas tax revenues per user, EV drivers would be paying disproportionately and discouragingly high taxes under such a proposal. 

We’re thankful that the Senate Finance committee chose to omit this penalty fee for the millions of Americans that already pay steep state EV-specific state registration fees. 

We were very concerned that using the budget reconciliation process to impose new fees on drivers would circumvent substantial discussions that are needed to address the Highway Trust Fund’s historic challenges. To reach fiscal sustainability, Congress should examine how all drivers, including EV drivers, contribute to the transportation system’s upkeep and efficiency. That conversation must occur during a robust bipartisan surface transportation reauthorization process.

The undersigned respectfully urge Congress to avoid business-killing abrupt changes to EV credits and to ensure that EV and hybrid penalty fees remain out of any reconciliation package.

Sincerely,

Carmax, Nationwide
Carvana, Nationwide
HorsePower Motors, California
San Diego Auto Finders, California
I.g. Burton Auto Group, Delaware
Winner Subaru & Volkswagen, Delaware
Carman Ford/Lincoln, Delaware
Carman Chrysler Jeep Dodge, Delaware
First State Chevrolet, Delaware
Green Wave Electric Vehicles, New Hampshire
RS Motorsports, North Carolina
iDrive1 Motorcars, Texas
Slipstream, Texas
EV Auto, Utah
PrivateAuto, Utah
KeySavvy, Minnesota
Eastern Sierra Electric Vehicle Association, California
EV Life, Inc, California
Plug In America, California
Fox Valley Electric Auto Association, Illinois
Nevada Electric Vehicle Association, Nevada
Blue Ridge Chapter of Electric Vehicle Association, North Carolina
Oregon Electric Vehicle Association, Oregon
Houston Electric Vehicle Association, Texas
Drive Electric Richmond Vehicle Association, Virginia
Campbell Volkswagen of Edmonds, Washington
Mid-Columbia Electric Vehicle Association, Washington
West Virginia Electric Auto Association, West Virginia
Wisconsin Electric Vehicle Association, Wisconsin

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EV adoption varies greatly 

If you live in California, the Pacific Northwest, or in a city on the East Coast, it may be easy to assume that the EV transition is a done deal. But EV adoption is highly variable, and the EV market in the U.S. still needs tax credits. Some states have millions of vehicles and an EV market share of more than 25%, while others have just a few thousand registered electric vehicles. Tax credits are essential to drive EV expansion into rural areas and states with lower adoption rates. 

Not only are tax credits important for geographic equity, but as EV drivers know, the reduced fuel and maintenance costs associated with driving electric can save households both time and money. Transportation is the second-largest expense for most American households, accounting for 17% of spending. Low-income households, particularly rural households, spend more on transportation, sometimes as much as 30% of their after-tax household income. 

Switching from a gas car to an EV can save drivers thousands of dollars in fuel costs each year.  The used EV tax credit can help qualified drivers access a safe, reliable EV for under $20,000 that still has years and miles left on its drivetrain warranty. The used EV tax credit boosts economic mobility and electric mobility, and provides cost and climate benefits to those who need them most. 

The federal EV tax credits are not just for rich environmentalists. They are carefully designed to ensure responsible use. Users must meet income limits, cars cannot exceed MSRP caps, and vehicles must be assembled in North America with battery minerals and components from North America.

EV tax credits work

Industry-wide, 87% of all EVs purchased or leased in 2024 received the federal EV tax credit. Until EVs reach price parity with gas cars, they cost more upfront, but as EV drivers know, the fuel and maintenance savings more than make up for the price difference over the life of the vehicle. Accessing the full amount of the credit at the point of sale saves consumers money on finance charges, makes the tax credit available to those who don’t pay much in income taxes, and makes both new and used EVs more accessible.

 The ability to apply the commercial clean vehicle tax credit to leases not only allows more consumer choice but also creates a pipeline of EVs that will reenter the vehicle market as less-expensive used vehicles (with great warranties). In part, because of these tax credits, EV sales continue to grow in the United States. 

EV tax credits are not just an environmental tool; they are an economic tool

While the tax credits for new, used, and commercial EVs are great for drivers interested in making the switch to cleaner vehicles, they are far more than a consumer tax credit. The clean vehicle tax credits passed in the 2022 Inflation Reduction Act are part of a suite of complementary policies intended to catalyze a U.S. manufacturing renaissance.

Contrary to what many Americans believe, the United States is not the global leader in automotive manufacturing. China has dominated the global auto industry since 2009 and now manufactures over three times the number of automobiles as the U.S. It produces over 60% of the world’s EVs and 80% of its EV batteries. The U.S. auto industry is currently the second largest in the world. 

The future of the auto industry is up for grabs, but the future of the auto industry is electric. In 2025, one in four vehicles sold globally will have a plug. U.S. auto companies are multinational corporations. As international markets shift to EVs, without federal support to help the U.S. auto industry transition to manufacturing EVs and the batteries that power them, the U.S. will get left further and further behind. The clean vehicle tax credits were carefully designed to help automakers transition to EVs and build a domestic supply chain through manufacturing tax credits, while providing consumer EV tax credits to make EVs more affordable to consumers and grow the U.S. market. 

Once again, the tax credits have worked. Nearly $62 billion in announced investment and 91,900 jobs have been directly linked to facilities that currently or intend to manufacture new clean vehicle credit-eligible vehicles or batteries; 65 percent of that investment is in districts represented by Republicans. More broadly, the IRA was expected to catalyze $2 trillion in private investments in manufacturing and over 1 million new jobs in 2030.

Businesses and consumers need consistency to feel confident in moving forward

Congress made a commitment to automakers and consumers with the tax credits. The uncertainty caused by these shifts undermines trust in the current administration and the democratic process. It also creates expensive challenges for automakers who plan many years ahead and invest hundreds of millions of dollars in manufacturing and supply chain development. These investments cannot pivot year to year, leaving battery and auto manufacturers at a competitive disadvantage. 

The One, Big Beautiful Bill Act eliminated all EV tax credits

The law eliminated the new, used, and commercial clean vehicle tax credits on Sept. 30, 2025, and stopped the EV charging equipment tax credit a year later (the equipment must be placed in service before that time). 

This legislation will not stop the EV transition, but will make it slower and less equitable. Eliminating these tax credits will cost billions in manufacturing investments and hundreds of thousands of U.S. jobs. Energy prices will rise, innovation will slow, and domestic supply chain development will falter. The auto industry will continue to fall further behind. Tailpipe pollution and related health damages will increase, and climate change and related disasters will accelerate. 

The post EV Tax Credits Are Working—Cutting Them Now Would Be a Costly Mistake appeared first on Plug In America.

EV drivers already pay more than their fair share in dozens of states. Now, some members of Congress are trying to further punish EV drivers for not buying gasoline. While EV drivers are happy to pay their fair share into the Highway Trust Fund, this is not the solution. Keep reading to better understand the situation. 

Why the EV tax is being proposed

Obviously, cars need maintained roads and bridges to get around. The U.S. has historically supported road infrastructure through the Highway Trust Fund (HTF), which is funded through a gas tax that drivers pay at the pump. Currently, the HTF has a deficit. EVs don’t run on gas, so EV drivers don’t pay a gas tax. Because of this, EVs are seen as an easy target in discussions on how to fix the funding gap.

EV opponents make EVs the scapegoat, distracting everyone from finding a real solution to fund our road infrastructure for years to come. EV opponents in Congress falsely claim that this proposed tax would fix the Highway Trust Fund. While this would be a hefty $250 out of EV drivers’ wallets every year, the combined revenue from the car tax on EV drivers wouldn’t even make a dent in the Highway Trust Fund.

Why the EV tax is unfair

When you break it down, EVs are only responsible for a tiny fraction of the infrastructure funding gap. The overwhelming majority is due to inflation, increased road infrastructure costs, and increasing efficiency of gas vehicles (higher vehicle efficiency = less gas burned = less gas tax paid). The federal gas tax has not been raised or adjusted for inflation since the 1990s.

EV drivers want to pay their fair share, but this $250 annual tax proposal is far beyond a fair share. At the current federal gas tax rate of 18.4 cents per gallon, the average gas-powered light-duty vehicle would have paid only $82.25 in federal taxes that year. Taxing EV drivers $250 annually is far above that, making EVs more expensive for regular Americans and punishing them for driving a new technology.  

Take action

Tell your representatives not to impose this $250 annual car tax on EV drivers. Send this message to your friends, neighbors, and anyone else you know with an EV – because if we don’t stop this, EV drivers will see a fresh $250 bill from the federal government come tax season.

The post Congress is pushing a punitive tax on EV drivers appeared first on Plug In America.

Challenge

For EV drivers in cities, charging can be difficult to access for various reasons. Installing chargers in cities can be time-intensive and expensive, or they can be challenging to site and get a utility connection to the grid. Even once installed, traditional chargers are bulky and may not blend well with streetscapes. How can cities scale rapid, cost-effective charging?

Objectives and solutions

it’s electric, a New York-based company, has leveraged a creative and simple solution to power a charger by tapping into excess electric capacity in a nearby building. This approach to using existing infrastructure and grid connections to power curbside chargers across cities can save time and money, enabling rapid EV charging installation at scale. it’s electric developed public charging with the intention of it being a permanent replacement and solution for a home charger. 

it’s electric partners with property owners seeking to install chargers on their property’s curbs. it’s electric powers their chargers using the spare electrical capacity from existing buildings, which they confirm with the property owner. During their short, two-day installation process, they run a shallow conduit from the building’s electrical panel to the new charger, which is located at the curb. The installation process is much quicker than the average curbside charger, even though they still have to get the appropriate permits from the city. The chargers are also separately metered so that the electrical usage can be billed separately and paid to the utility by it’s electric.

it’s electric chargers are all Level 2 and available to the public 24/7 all year. The chargers have been carefully designed to blend better with cityscapes by occupying less square footage and visual space, and to be tough enough to survive being located at the curb. it’s electric is also the first U.S. company to apply a smart design principle that works in Europe: detachable cables (also known as the bring your own cable (BYOC) model). 

it’s electric owns, operates, and maintains the chargers at no cost to the property owner. In fact, it’s electric offers a revenue share with the property owner. Through their initial partnerships, it’s electric is learning that property owners enjoy that they don’t have to manage the parking for chargers. The revenue share for host property partners is $0.06/kWh. This comes out to between $700-$3400 (based on utilization) per year per charger that goes back to the property owner. 

For the driver, the process is simple. Drivers download the it’s electric app, join the network, and request a cable, which it’s electric provides at no cost to the driver. Each driver receives their own charging cable with a connector that matches their vehicle, which can be attached to it’s electric’s chargers. Importantly, their model does not require a membership. Once the driver receives their cable, they can charge at it’s electric chargers. Pricing of charging varies by city. The price is set by it’s electric and the city where the charger is located, and they typically recommend a time-based pricing model with time-of-use rates. This creates both an incentive to unplug the car when it’s done charging and encourages overnight charging by offering a lower nighttime rate.  For the first it’s electric charger installed in Boston, charging costs $1.50 per hour at night (9 pm-6 am) and $3 per hour during the day (6 am-9 pm).

Elements for Success

• By leveraging existing buildings to power charging, it’s electric eliminates time-intensive and costly steps to install chargers. Additionally, their ability to approach property owners with a simple, cost-beneficial solution helps convince building owners that EV charging is an asset.
• The detachable charging cable is designed for cities, where vandalism is often a concern, because charging cables left outside are at risk. With a detachable cable, it’s electric doesn’t have to provide multiple connector types on the chargers themselves. What’s more, it’s electric designed their chargers (including the detachable cable) specifically for the city curbside. The chargers are low-profile and sleek, so they blend seamlessly with cityscapes.

References

• it’s electric
• These Startups Are Finally Bringing EV Chargers to America’s Cities – WSJ
• Breaking Barriers: A Startup Changes The Game For EV Charging In Cities
• Boston and its electric launch the next generation of Urban EV charging

Recap: 

Charger type: Level 2 charging
Charging type: Public
Problem solved: Access, Equipment
Solution type: Technology

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The post it’s electric, a New York-based company, is partnering with property owners and installing public curbside charging with a twist appeared first on Plug In America.

Challenge

Access to charging is essential for drivers of all kinds. However, affordable access to clean transportation can face additional challenges for underserved tribal communities, including power availability, investment potential, and community buy-in. What can we achieve with intentional, proactive community engagement?

Objectives and solutions

The Upper Midwest Inter-Tribal EV Charging Community Network, referred to as “Electric Nation,” is a “whole of economy approach” to provide access to clean and affordable transportation for underserved tribal communities. Electric Nation’s goals include increasing access for communities to essential services and increasing collaboration across the upper Midwest region tribal communities.

Electric Nation is a growing regional community-led EV charging initiative. It is a holistically designed project led by Native Sun Community Power Development (NSCPD) and Standing Rock (SAGE) Renewable Energy Power Authority and in partnership with the American Lung Association, Minnesota Center for Energy & Environment, Minnesota Pollution Control Agency, Xcel Energy, Ottertail Power, Minnesota Power, and Zef Energy.

While the project is not exclusive to multifamily housing (MFH) residential charging, it is notable for its structure and approach to curating investments in EV charging, led by community-based decision-making and community priorities. Currently, in the middle of its three-year grant cycle, Electric Nation is building its foundation. Specific project goals include:

• Install 55 direct current fast-charging units on Tribal lands and connect them to main travel routes and other Tribal communities. 
• Install 60 Level 2 EV supply equipment points at community gathering spots, including grocery stores, multifamily housing, Tribal colleges, casinos, and other destinations. 
• Deploy EVs in Tribal fleets, including 16 light-duty EVs, an electric shuttle, and two electric school buses. 
• Implement two workforce training programs for the members of Red Lake Nation and Standing Rock Sioux Tribe.
• Implement 52 educational sessions for communities about EV usage and benefits.

Elements for Success

• Community leadership and decision-making ensure that investments made through Electric Nation are well-designed for and supported by the community. Too often, projects intended to benefit communities are initiated without their input and result in a mismatch between the needs and desires of the community and project output. Electric Nation offers a model for community-centered planning that focuses on the needs of the community. When implementing solutions intended to support MFH residents in their mobility needs, robust community engagement is needed to ensure the solution meets the need. The aesthetics of EV chargers emerged as a key concern for community members in feedback sessions. Electric Nation implemented this feedback by partnering with Indigenous artists to make the infrastructure inclusive and welcoming to ensure the usage of the stations.
• Distributed energy resources (DERs) were essential to support chargers and offset the cost of each station. Co-locating DERs with EV chargers enabled charger installation across varying sites by avoiding high demand charges and expanding potential site locations.
• External funding has supported the creation and ongoing growth of this project. Cost-sharing among the project partners supports the remaining costs not covered by the federal grant.

References

• Tribal nations, utilities partner on EV access and reliability in the Upper Midwest
• Our Work | Native Sun Community Power Development – Minneapolis, MN 
• The unique role some Tribal nations are taking in the EV transition – Plug In America
• Native-led EV initiative launches by distributing millions of dollars worth of vehicles to tribal communities | MPR News
• Mobility Equity Framework: How to Make Transportation Work for People – The Greenlining Institute

Recap:

Charger type: Level 2 and fast charging
Charging type: Public
Problem addressed: Access, Cost, Equipment
Solution type: Community

The post Electric Nation is providing access to clean and affordable transportation for underserved tribal communities appeared first on Plug In America.

Challenge

Getting EV charging in cities can be extra challenging because they’re expensive, and many drivers who would use them most don’t yet have EVs (likely because they don’t have access to charging). This catch–22 makes it difficult to find public charging in cities. For rideshare drivers, who are high-mileage drivers, this lack of access can make driving an EV for rides impossible. How can urban drivers, especially rideshare drivers, be supported in their charging needs?

Objectives and solutions

Enter Revel. Revel is an EV charging company that started installing public charging to provide access to charging in dense urban areas that don’t have ample public charging and where drivers don’t have access to charging at home. Revel has taken a novel approach to funding their charging projects: building an all-electric rideshare platform. 

Many rideshare drivers operate in cities where charging infrastructure is sparse, and the lack of charging stations close to popular pickup and drop-off locations can lead to long wait times, inefficient routes, and unnecessary downtime. For drivers who rely on EVs, this barrier makes it difficult to maintain an effective, profitable work schedule.

Revel’s concept to leverage its rideshare platform to deploy public EV charging is the first of its kind in the US. These charging stations are designed to serve electric vehicles used in ridesharing, ensuring that drivers can quickly and efficiently recharge their EVs during breaks without disrupting their schedules. The chargers are open to the public 24/7. Revel’s charging stations are equipped with DC fast chargers rated at 150kW and 320kW, depending on the site. Revel chargers have both NACS and CCS connector types to ensure all drivers can charge their vehicles. 

Revel’s fleet of electric vehicles for rideshare services is available to provide an accessible option for drivers. Revel partners with platforms like Uber to provide discounts on EV charging and enable drivers to utilize the Revel charging network as part of their daily routines, further incentivizing EV adoption among those in the rideshare industry. 

Revel is currently the largest provider of public EV charging in New York City. Building on their momentum, Revel has secured a $60 million loan from the state of New York to triple their public EV charging capacity in NYC.

Elements for Success

• Revel’s decision to build an all-electric rideshare platform and ability to partner with popular rideshare services like Uber ensures that drivers can easily incorporate the use of Revel’s vehicles and charging infrastructure into their workday.
• This integration provides drivers with a hassle-free solution that makes it easier to adopt electric vehicles.

References

• Revel 
• NYC’s fastest EV charging company, Revel, opens its first West Coast station 
• Revel and PANYNJ Open New EV Charging Station at JFK
• New York loans Revel $60M to expand NYC public EV charging

Recap:

Average charging cost: $0.54/kWh
Charging type: Public
Problem addressed: Access
Solution type: Technology

The post Revel is powering cities with public EV charging and all-electric rideshares appeared first on Plug In America.

Challenge

For EV drivers in Burlington, VT, a city-wide goal of reaching Net-Zero Energy by 2030 helps drive creative solutions for EV charging for multifamily housing, including affordable housing.  Burlington’s municipal electric utility boasts 100% renewable energy and continues to drive solutions toward sustainable electrification. Consistent with the utility’s mission, Burlington Electric Department (BED) has identified a creative solution to address access and affordability of EV charging for drivers living in multifamily housing who do not have access to off-street parking. Indeed, one appreciative customer shared the following thoughts: “I’ve been really happy overall with the pole-mounted chargers – they’ve been super convenient, and I honestly can’t say enough good things.” 

Objectives and solution

BED identifies neighborhoods with high numbers of vehicles parking on the streets. Then, BED prioritizes those neighborhoods for the rollout of affordable EV charging and installs Level 2 EV chargers on curbside utility poles. 

These utility-owned and operated chargers are installed 10 feet up on the poles to save space at street level and prevent damage from snow plows and other sources., Using the ampUp app, an EV driver can either scan a QR code on the pole or select the charger from the ampUp map, to trigger the charging cable to descend for easy charging. Not only is the charging convenient, but it’s also affordable, at $0.13 per kilowatt-hour (midnight to noon) and $0.21 cents per kilowatt-hour (noon to midnight). With these new chargers, all Burlingtonians, whether homeowners with space for a Level 2 charger on their property or multifamily renters with no off-street parking, have the opportunity to take advantage of the lower, off-peak charging rate.

BED is studying how well these chargers work and, if this pilot program is successful, will look to install more in additional neighborhoods where residents live in apartments without access to off-street parking. The program is also designed to include residents who live in affordable housing. BED suggests that utilities interested in exploring this technology test both the user interface with the app and the durability of the charging hardware.

Elements for success

• BED is not only providing access to charging for EV drivers, but is also identifying and providing access in areas where it is most needed. By prioritizing neighborhoods where residents do not have access to off-street parking, they are ensuring that the impact of each pole-mounted charger will be maximized.
• BED selected a unique charger configuration that will deter damage to and vandalism of charging cables and use existing utility infrastructure rather than adding new equipment in the curbside area, resulting in easier and quicker installs with no ground site-work.

References

• How Burlington hopes to make EV chargers more accessible
• Burlington Electric Department introduces new pole-mounted electric vehicle chargers to improve charging access

Recap

Charging cost: $0.21/kWh (noon to midnight) or $0.13/kWh (midnight to noon)
Charging type: Public
Problem addressed: Access, Equipment
Solution type: Utility

The post Burlington Electric Department installs pole-mounted EV chargers for targeted curbside charging appeared first on Plug In America.

Challenge

Charging and parking can be difficult for EV drivers in cities. The city of Pittsburgh aims to reduce on-road transportation emissions by 50% and is working to increase vehicle electrification to do so. Pittsburgh also wants to revitalize its downtown Strip District and create more space for local businesses to grow. How can cities use their limited parking space efficiently while providing charging access for EV drivers?

Objectives and solutions

Stak Mobility has developed an open-air vertical parking carousel in Pittsburgh, with other structures in Healdsburg, CA, Gainesville, FL, and Charleston, SC. Each of the 42 parking spaces available in the carousel is outfitted with a Level 2 EV charger. While users don’t necessarily need to have an EV to use this parking carousel, the structure provides a convenient way for EV drivers to find charging. It can provide charging confidence to curious consumers about the options available.

Drivers who want to park in the carousel simply use the Stak Mobility app to find a spot and reserve parking. They confirm through the app and use it to get their car once it’s ready. While some structures have had a valet on-site, this particular carousel is self-service. Drivers pay a monthly subscription for parking and charging, which varies based on the car size.

Stak Mobility’s carousels not only provide charging but also work much more efficiently than the average parking garage. This specific solution freed up about 10,000 square feet of space within the building that can be used for commercial and retail space for local businesses. 

Elements for Success

• Stak Mobility has used private investment to create an EV charging solution that uses space vertically rather than horizontally. EV drivers get more parking space with chargers equipped at each one. The cities targeted for these projects benefit from more space for local businesses and attractions, which can boost their local economy.
• This technological solution provides more charging opportunities in areas where multifamily housing is prevalent and makes charging easy for residents without dedicated parking spaces.

References

• Stak Mobility
• Stak Mobility to Launch Second Mobility Hub in Pittsburgh; Sees Continued Momentum Across the US
• In Pittsburgh, this vertical parking carousel can fit 42 cars – and offers EV charging for every one
• Stak in the News
• Unique ‘carousel’ parking lot accommodating electric vehicles in Strip District

Recap:

Charging cost: Monthly subscription
Charging type: Public
Problem addressed: Access, Equipment
Solution type: Technology

The post Stak Mobility develops an open-air vertical charging carousel in Pittsburgh appeared first on Plug In America.

Challenge

Residents of multifamily housing are a critically underserved population when it comes to accessible EV charging. These properties have unique challenges, such as the need to serve many residents, limited electrical capacity, and uncertainty about when residents will switch to EVs.

Most EV drivers travel around 40 miles a day and leave their cars parked for at least 12 hours daily. Installing Level 2 charging, which can recharge a full EV battery in about 4 hours, in apartments and condominiums can require expensive panel upgrades. Recouping these costs drives up per-kWh charging rates for multifamily housing residents and often leads to shuffling vehicles between parking spaces since Level 2 charging for daily use often takes an hour or less. Is there an inexpensive, low-power solution that creates a better fit for EV charging schedules and enables property owners to afford larger EV charging projects?

Objectives and solutions

Peninsula Clean Energy (PCE), a community choice aggregator that sources clean energy for residents in California, aims to reduce the cost of charging installations for landlords and the per-kWh cost of charging for residents. PCE’s EV Ready program provides free technical support and incentives to landlords and property managers who add EV charging to their properties. When property owners seek technical assistance, PCE offers three design options– “good, better, and best”–and the “best” option typically includes the least expensive, lowest-level chargers. Many EV drivers and intenders assume that they need a Level 2 charger (typically 7 kW) to charge their EV. However, according to PCE’s self-published report on the results of their managed charging pilot, about ⅓ of residential EV charging already utilizes a typical 120V outlet. 

For daily driving, Level 1 chargers are completely adequate and cost very little to install. They also complement typical parking behaviors in which drivers park their cars in the evening and don’t move them until they head out the following day. When program participants reach out to PCE to get a quote on costs and incentives for installing Level 2 chargers, PCE will provide that information, but will often recommend more chargers that work at a lower power level as their “best” option. Instead of the upsell costing more, the recommendation provides more chargers for less money. Not only can the cost savings from these projects ultimately reduce the cost of charging in multifamily housing, but they can also serve more drivers, make charging more convenient, and reduce the impact of charging on the grid. 

A recent EV Ready Success Story shared by PCE highlights the fact that an increasing number of prospective renters are asking about EV charging. In response to this demand, Tyrone Properties installed 13 Level 1 and low-power Level 2 chargers for their tenants. With the help of incentives from the EV Ready program, total out-of-pocket costs were less than $150 per charger. Additionally, when possible, the chargers are wired directly to the resident’s apartment’s electric meter. This allows customers to take advantage of utility-offered EV rates and time-of-use residential rates that make the grid cleaner and more efficient and reduce the cost of electricity. PCE has installed more than 1,600 chargers so far and has 3,000 more in progress. About three-quarters of these support people living in multifamily housing.

Elements for Success

• Peninsula Clean Energy is uniquely positioned as a special-purpose public agency and a non-profit to meet the charging needs of residents.
• PCE offers cheaper rates than the investor-owned utility whose territory in which it resides. Because there are no shareholders, everything they make from selling power is invested in electrification programs.
• Savings from the increased efficiency of the system put downward pressure on rates.
• PCE’s focus on “right sized” EV charging is allowing for larger sized projects at affordable costs for property owners.

References

• PCE EV Managed Charging Pilot Results
• Access to slow EV chargers could speed up EV adoption among renters
• Peninsula Clean Energy EV Ready Program
• EV READY SUCCESS STORY Tyrone Properties adds EV charging  at low to no cost

Recap:

Charger type: Level 1 and Level 2 charging
Charging type: Public or private
Problem addressed: Access, Cost
Solution Type: Utility

The post Peninsula Clean Energy prioritizes widespread low-level charging for increased cost savings and access. appeared first on Plug In America.

Challenge

In order to provide EV chargers in a multifamily housing property, it is often the property owners and managers that need to be convinced. What can be done to make it as easy and inexpensive as possible to install and manage EV chargers in multifamily housing buildings?

Objectives and solutions

In Ann Arbor, Michigan, the Commercial EV Charger Program will provide commercial and multifamily property owners with up to four free Level 2 chargers in their buildings. These chargers are FLO CoRe+ chargers, which come with a 5-year performance warranty and a 5-year software package. Charger accessories can also be included, depending on the building’s needs.

Multifamily properties with at least five units are eligible to apply for the grant, which is not fulfilled until the properties can provide evidence that the site is ready for EV charger installation. Applicants are prioritized based on the building location and expected charger demand within the building. Ann Arbor developed a GIS map with scores that take into account the density of multifamily rentals, access to public transportation, and local EV charger availability.  

The grant stipulates certain parameters for property managers. These include ensuring the cost of charging does not exceed the cost of electricity (plus a transaction fee), allowing full public accessibility to EV chargers, maintaining 90% uptime for the chargers, and more. Building owners must allow the City of Ann Arbor to inspect the site and must report charger data to the city twice per year. After the 5-year software package and warranty expire, grant recipients will be responsible for their own software and maintenance costs.

Elements for Success

• Ann Arbor’s Commercial EV Charger Program removes financial barriers for property managers and owners to deliver a service to drivers inside and outside their complexes. 
• The program also sets safeguards that protect EV drivers by ensuring they are not overcharged for electricity. These multifamily housing residents can now pay the same rates for charging as other drivers who charge at home.

References

• Ann Arbor’s NEW Commercial EV Charger Program
• FLO Chargers Power Ann Arbor’s Commercial Charging Program
• Ann Arbor offers free electric vehicle chargers for commercial and multifamily buildings

Recap:

Charger type: Level 2 charging
Charging type: Public
Problem addressed: Access, Equipment, Cost
Solution type: Policy

The post City of Ann Arbor launches program to help commercial and multi-family property owners install EV chargers appeared first on Plug In America.