Tesla $7,500 Tax Credit Ending: What You Need to Know

Tesla $7,500 Federal Tax Credit Officially Ending: Key Updates and What It Means for You

Hey everyone, DennisCW here! I know we're a bit late to the party on this one, but I realized I haven’t shared an official update or announcement about a major change for electric vehicle buyers. If you’ve missed the news, the $7,500 federal tax credit for Tesla and other electric vehicles (EVs) is officially ending. President Trump has signed what’s been dubbed the “one big beautiful bill” on July 4th, as predicted, and it brings some significant changes for EV buyers. In this post, I’ll break down what’s happening, the good, the bad, and what you need to do if you’re planning to buy a Tesla or any EV before the deadline. Let’s dive in!

The End of the $7,500 Federal Tax Credit

It’s official—Trump signed the bill on July 4th, 2025, and with it, the $7,500 federal tax credit for electric vehicles is set to expire. This means you’ve got roughly 90 days left to take advantage of this incentive. If you’re planning to buy a Tesla or any qualifying EV and want to claim this credit, you need to act fast—the deadline is September 30th, 2025.

Now, I know some of you might be thinking, “I don’t even qualify for the tax credit.” But here’s the thing: you do if you lease the vehicle. Leasing is a fantastic workaround for Tesla, Rivian, and pretty much all electric vehicles. Just yesterday, I talked about a Hummer EV deal for about $599 a month, and yes, that price includes the benefit of the $7,500 tax credit. So, if buying outright isn’t in the cards, leasing could be your ticket to savings.

Quick Tip for Tesla Buyers: If you’re ready to pull the trigger on a Tesla, don’t forget to use a referral code (like the one in the description of my videos) to get three months of Full Self-Driving (FSD) added to your purchase. Plus, if you’re already buying FSD, using my referral code helps support the channel. Win-win!

A Small Silver Lining: No Tax on Car Loan Interest

While the loss of the $7,500 tax credit stings, there is a small positive in the new bill. For vehicles built in the US, you can now deduct car loan interest from your taxes. This is a nice-to-have, especially since it didn’t exist before, but let’s break it down to see if it’s really a game-changer.

Here’s the quick math (TL;DR version):

• If you pay $7,359 in interest on a car loan, you could see a net tax savings of about $1,619.
• However, you have to pay interest to get this deduction, which isn’t ideal. I’d much rather you avoid paying interest altogether if possible.

The real winners here? The banks. They can now charge interest rates of 4%, 5%, or even 6% and market it as a “tax-saving opportunity.” I’m a bit skeptical about this being a true benefit for consumers, and I hope banks don’t use this as a marketing gimmick to push high-interest loans. Let me know your thoughts on this in the comments—do you think this deduction is worth it?

What About Tesla Financing Promotions?

Unfortunately, Tesla doesn’t currently have any financing promotions like 0% or 1.9% interest rates. I’m keeping my fingers crossed that they’ll roll something out soon, especially for popular models like the Model Y. Stay tuned—tomorrow, I’ll dive deeper into the timing of potential promotions and how they could align with your purchase plans. If you’ve got ideas or predictions about Tesla financing, drop them below!

Protect Your Credit Before Financing

If you’re planning to finance your Tesla or any EV, there’s one critical step you need to take before you even apply for a loan: protect your credit. Recently, Bank of America had a data breach and didn’t notify customers for a full month. That’s insane! Your Social Security number, phone number, and email could be floating around on the dark web, and you’d have no idea. On average, companies wait 277 days—that’s 9 months—to report a breach. That’s 9 months of your identity being exposed.

That’s why I use Aura, today’s sponsor, to keep my personal info safe. Aura constantly scans the dark web and alerts me if anything tied to me—like my Social Security number or bank info—pops up. But it’s not just for breaches. Aura offers tools to reduce spam calls, remove your data from shady broker sites, and even includes up to $5 million in identity theft insurance. Everything is packed into one easy-to-use app.

You can try Aura free for 14 days at aura.com/denniscw (link in the video description too). Don’t wait until someone else tells you your data is at risk—that’s like turning on Sentry Mode after your Tesla’s already been keyed. Protect your credit now, especially if you’re financing. I’m doing it, and you should too.

Final Thoughts: Act Now or Miss Out

The clock is ticking on the $7,500 federal tax credit for Tesla and other EVs. With only 90 days left until September 30th, 2025, now’s the time to make a move if you’ve been on the fence. Whether you buy or lease, don’t miss out on this significant savings opportunity. And while the new car loan interest deduction is a small consolation, it’s not a replacement for the tax credit—proceed with caution when it comes to financing.

What are your plans? Are you rushing to buy a Tesla before the deadline? Are you considering leasing to snag the credit? Let me know in the comments—I’d love to hear your thoughts! And as always, if you’re buying a Tesla, use a referral code to get those extra perks and support the channel.

Thanks for reading, and I’ll catch you in the next update!

— DennisCW