EV Discounts Deepen After 'Big Beautiful Bill' Passes
Signed into law on July 4, 2025, the “One Big Beautiful Bill Act” ends the $7,500 clean vehicle tax credit after September 30, 2025.
The tax credit has been instrumental to accelerating electric vehicle (EV) and plug-in hybrid electric vehicle (PHEV) adoption by offering consumers a break on their taxes for purchasing an EV or PHEV. Additionally, a provision of the tax code (Section 45W) has enabled the tax credit to be applied towards leases, resulting in affordable EV and PHEV lease deals for consumers.
All this is coming to a screening halt. While the auto industry lobbied for a gradual phase-out of the clean vehicle tax credit, this abrupt end has automakers and dealers scrambling to clear out EV and PHEV inventory. The fear is that few consumers will buy an EV or PHEV when prices jump overnight on October 1, 2025.
To meet this deadline, automakers significantly improved EV and PHEV lease incentives soon after the bill was enacted. Here are a few examples of how lease incentives improved:
Mercedes-Benz EV and PHEVs
Before: $7,500 Lease Cash
After: $11,500 Lease Cash
Honda Prologue
Before: $1,000 Conquest Cash
After: $3,500 Conquest Cash
Hyundai IONIQ 5
Before: $13,250 Lease Cash
After: $14,500 Lease Cash
Kia EV9
Before: $7,500 Lease Cash
After: $9,160 Lease Cash
If you are considering a new EV or PHEV, we strongly suggest acting soon before inventory starts to dwindle and the clean vehicle tax credit is gone for good.
You can look up all lease programs, including incentives, rates, and residuals, on Rate Findr. This information is crucial for negotiating any good deal on a car lease.
If you would rather not haggle, check out Pre-Negotiated Deals from the Leasehackr Team.