Setback for Oregon EV Market: Tax Credits End Today

By Isobel Charle, Public News Service

It is National Drive Electric Month but Oregon drivers who do not own electric vehicles face a setback, as federal tax credits expire Tuesday for buying an EV.

The credits of up to $7,500 for new EVs, and up to $4,000 for used models are ending early under the Trump administration’s “One Big Beautiful Bill Act.” Oregon has a burgeoning EV industry, with one of the highest rates of EV drivers per capita in the country. The bill also scrapped federal fuel economy standards.

Ingrid Malmgren, senior policy director for the advocacy group Plug In America, said the credits and standards have been a driving force in the transition away from gasoline vehicles.

“The policy changes that we’re seeing are largely going to undermine industrial progress in the United States,” Malmgren contended. “Particularly in battery manufacturing, clean energy manufacturing and automotive manufacturing.”

Investments in EV manufacturing have created more than 230,000 new jobs across the U.S. so far, according to Plug In America. Opponents of the EV tax credits said they have been costly and ineffective.

Malmgren pointed out more than one in four new vehicles sold around the world is electric, and the number is likely to increase. She argued rolling back clean vehicle standards and incentives puts the U.S. at a disadvantage globally.

“We are not going to be leaders in this space,” Malmgren cautioned. “We are going to lose out on technological innovations and we are going to have to watch the rest of the world move forward and possibly be buying our vehicles from other countries.”

Despite the challenging policy environment, Malmgren believes the shift to EVs is inevitable.

“They’re just superior vehicles,” Malmgren asserted. “They’re quick, they’re clean, they’re quiet. They offer so many benefits over gas vehicles.”

Oregon has also had some state tax credits for buying EVs but the Standard Rebate expired Sept. 8. Lower-income drivers can still apply for what’s known as a “Charge Ahead” rebate.