Consumers considering the purchase of an electric vehicle have a limited window of opportunity remaining to benefit from the current $7,500 federal tax credit. Come October, new legislation is expected to eliminate this financial benefit, marking a significant shift in the landscape of EV affordability.
This policy adjustment is anticipated to have a more pronounced effect on the entry-level segments of the EV market compared to premium models. While a high-end vehicle such as the Tesla Cybertruck All-Wheel Drive might see its effective price increase by approximately 10% without the credit, budget-friendly EVs could experience an effective price jump closer to 30%. This scenario poses a considerable challenge for models like the Chevrolet Equinox EV, which stands to be among the most affected by the discontinuation of the incentive.
Beyond Tesla, the Chevrolet Equinox EV has emerged as a top-selling electric vehicle in the American market, with sales exceeding 27,000 units in 2025 alone. A major contributing factor to its popularity has been its accessible price point, with the base Equinox EV LT1 model starting at $33,600. When factoring in the $7,500 tax credit, the effective cost to the consumer drops to an attractive $26,100. This competitive pricing positions it even below the 2025 Nissan Leaf, an older model priced at $28,140. Without the tax credit, the Equinox EV will effectively become 28.7% more expensive, a substantial increase that could deter potential buyers.
At its current effective price point of approximately $26,000, the Equinox EV offers compelling value. It features standard front-wheel drive and a single electric motor delivering 220 horsepower, providing an impressive range of 319 miles on a full charge. In contrast, the 2025 Leaf S offers significantly less power, with only 147 horsepower and a limited range of 149 miles.
The impact of the tax credit removal extends beyond the base Equinox EV LT1 to other variants as well. The RS trim, for instance, which currently starts at $35,900 with the tax credit, will see its price rise to $43,400, representing a 21% increase. This challenge is further compounded by existing pressures on automakers, such as tariffs, making the goal of maintaining competitive pricing increasingly complex.
While the Equinox EV is highlighted as one of the most affordable electric vehicles benefiting from the current tax credit, several other popular models in the $40,000 to $50,000 price bracket are also expected to be significantly impacted once the incentive expires at the end of September. These include:
Higher-priced EVs, such as the Cadillac Lyriq and Genesis Electrified GV70, will also feel the effects of this policy change. However, due to their higher price points, lower sales volumes, and more premium market positioning, the impact on their sales figures is anticipated to be less severe. Historical data indicates that tax incentives have played a crucial role in stimulating EV sales. Therefore, the final quarter of the year is expected to reveal the full extent of the new bill's impact, unless vehicle manufacturers can introduce alternative incentives to sustain consumer interest and demand.