EV tax credits expire soon, but Arizonans can save before they’re gone

Tatiana “Tati” Mena Ramos

Submitted photo

Thinking about going electric in Arizona? There’s no better time than now — and no time to waste.

For years, federal tax credits have helped thousands of Arizonans afford electric vehicles by reducing the sticker price by thousands. However, under the recent budget bill, key incentives for new, used and leased EVs will expire on Sept. 30, 2025.

The impact of these credits has been substantial. In June 2024, the Treasury Department reported that consumers had saved more than $1 billion in upfront costs on the purchase of over 150,000 clean vehicles. Boasting over 89,000 registered electric vehicles, Arizona’s EV surge is part of this nationwide trend.

But with the phaseout now official, the countdown is on. Buyers have just weeks to lock in federal savings along with state or local incentives still in effect. If you’re considering an EV, this could be your last — and best — chance to make the switch and save.

Why going electric is a smart choice

Even as federal tax credits phase out, EVs still offer big savings. Charging costs less than gas nationwide — and in Arizona, where prices run about 35¢ higher per gallon, fuel savings are even greater. Lower maintenance adds to the benefit, with Arizona EV owners cutting costs by 30% to 50%. On average, EV drivers save $1,750 a year, or about $21,000 over 15 years — no oil changes, fewer moving parts and cheaper fueling.

And despite lingering concerns about range, today’s EVs are more than ready for everyday life. The average electric vehicle now delivers nearly 300 miles of range on a full charge — about eight times the distance most Arizonans drive in a day. That means fewer charging stops and more confidence behind the wheel, whether you're commuting to work or heading out of town.

But going electric doesn’t just save money — it also helps Arizonans breathe easier and feel better, too. In Arizona, extreme heat and high air pollution go hand in hand. Rising temperatures speed up the formation of ozone, a harmful pollutant that inflames the lungs and worsens asthma, heart disease, and other severe health conditions. With zero tailpipe emissions, EVs help reduce smog and pollutants that are especially dangerous for children, seniors, and individuals with pre-existing health issues.

What’s going away — and what you can still claim

With all these benefits, it’s no surprise that federal incentives have played a key role in accelerating EV ownership— nor is it surprising that Arizona ranks ninth in the nation for EV adoption.

While one federal incentive — the Alternative Fuel Vehicle Refueling Property Credit (30C) — will remain in place through June 30, 2026, offering up to $1,000 toward the installation of qualified home EV charging equipment in eligible areas, the most impactful credits are set to disappear much sooner. 

The New Clean Vehicle Credit (30D), which provides up to $7,500 for qualifying new electric vehicles, and the Used Clean Vehicle Credit (25E), which offers up to $4,000 for eligible pre-owned models, will both expire on Sept. 30. To take advantage of these generous incentives, Arizonans must act before the deadline.

Why now is the right time to make the switch

As the deadline approaches, the market is already reacting. Dealerships are rolling out limited-time offers, including lease deals as low as $179 per month, to move qualifying vehicles before the credits disappear.

Meanwhile, the used EV market is heating up. Many models are priced between $15,000 and $20,000, with meaningful tax breaks still available for eligible buyers. Whether you’re buying new, used, or leasing, acting now could mean thousands in savings before these incentives are gone for good.

Last chance to find your EV and claim the credit

Not sure where to start? Plug In America can help you choose the right EV for your needs — from all-wheel drive to more extended range, more seating, or the best deal. Visit plugstar.com for brand-neutral guidance, up-to-date lists of eligible vehicles and incentives, and a locator for IRS-registered dealers who can apply the federal credit at the point of sale.

You can also get free one-on-one support to answer questions, explain eligibility, and maximize your savings. Don’t forget to check with your utility provider — many offer rebates or lower overnight charging rates that make EV ownership even more affordable. 

With limited-time deals, rising demand and incentives on the line, there may never be a better time to go electric.

Editor’s note: Tatiana “Tati” Mena Ramos is a marketing manager within the communications team at Plug in America, a nonprofit that has been educating the public, automakers and policymakers on the efficacy and benefits of driving electric since 2008. Please send your comments to AzOpinions@iniusa.org. We are committed to publishing a wide variety of reader opinions, as long as they meet our Civility Guidelines.