Tax credits for electric cars in the US expire on September 30, marking a significant shift in transportation electrification policy.

The US Congress has passed new tax legislation that will lead to the expiration of $7,500 tax credits for new electric cars and subsidies for used ones, which will negatively affect sales of electric vehicles. Advocacy organizations warn that the decision will make the US less competitive with China in the electric transportation sector. The new law also favors traditional automakers by eliminating penalties for not meeting fuel economy standards. Estimates suggest a 6% drop in electric vehicle penetration by 2030, while saving the federal government about $169 billion over the next decade.