Until Oct. 1, the federal government offered a tax credit of up to $7,500 for the purchase of a qualifying new EV, and $3,000 for a qualifying used EV. In addition, there was a $7,500 incentive available for new EV leases. Those are now gone with the passage in July of the One Big Beautiful Bill Act, which sought to undo clean energy policies as part of a larger package of tax cuts and spending.

But automakers have taken steps to soften the blow. Ford and General Motors have said they will continue to offer a $7,500 credit on leases.

Hyundai is offering a promotion in which it is selling and leasing its 2026 Ioniq 5 with price cuts of up to $9,800, effectively providing the equivalent of the tax credit and then some.

Also, some state and local governments are increasing their incentives for buying EVs. For example, Colorado Gov. Jared Polis last week announced that the state is increasing its tax credit from $6,000 to $9,000 for buying or leasing a new EV.