It has been just over a year since the federal electric vehicle tax credit expired in September 2025, ending nearly two decades of incentives worth up to $7,500 on a new EV and $4,000 on a used one. In its place, buyers are left with whatever their own state still offers, and a new Brookings Metro analysis finds that landscape is far from consistent.
The incentives that are left
Brookings Metro's June 2026 analysis counted roughly 20 states still offering some form of EV rebate, though the group notes a number of those programs have since closed enrollment or run out of allocated funds. Where incentives remain, the amounts vary widely by state and sometimes by income.
- Colorado: up to $9,000 off a new EV or $6,000 off a used one for income-qualified buyers, plus a $750 rebate open to all residents (rising to $2,000 starting January 2027)
- Maine and Massachusetts: dealership-level state rebate programs still active
- Roughly 20 states total with some active EV incentive, per Brookings Metro's June 2026 count
- Some state programs already exhausted their funding or closed to new applicants
What we have is a real patchwork now.
What's happened to EV sales
Electric vehicles peaked at about 10% of new car sales before the federal credit lapsed. As of August 2026, that share had fallen to roughly 5.7-6%, even as the used-EV market has kept growing. Several automakers have canceled EV models and booked billions of dollars in losses tied to the slower pace of adoption.
What it means for buyers
Whether an EV purchase still comes with a meaningful discount now depends almost entirely on where a buyer lives. Shoppers in states with active rebates, like Colorado, Maine, or Massachusetts, can still cut thousands off the sticker price, while buyers elsewhere are evaluating EVs on sticker price and running costs alone. Checking a state energy office or state DMV site for current rebate status before buying is the most reliable way to confirm what, if anything, is still on the table.
