Don't miss these EV deals for under $40K before the tax credit is eliminated in September

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"The One, Big, Beautiful Bill Act" includes tax cuts, restores incentives for business capital investments, and reduces spending on Medicaid as well as the green energy space. The act, signed into law on July 4, eliminates the federal electric vehicle tax credit in September.

Until then, several electric vehicles are eligible for the $7,500 existing tax incentive, making them much more affordable for consumers. In fact, some affordable electric vehicles can cost under $40,000 with the application of the tax credit. They're significantly cheaper than the average new car price of over $48,000, according to Kelley Blue Book. These EV deals are especially appealing as the White House puts the final nail in the coffin of a huge tax incentive for American car buyers.

The 2025 Chevrolet Equinox EV starts at under $27K with tax credit

Chevrolet's 2025 Equinox EV electric SUV is currently the most affordable electric SUV on the market. The tax credit takes its pricing to another level of affordability. It starts at $33,600, but its price is closer to $26,100 with the federal electric vehicle tax incentive.

The base model LT 1 front-wheel drive gets an EPA-estimated 319 miles of driving range. It has a massive 17.7-inch LCD display with Google built-in compatibility. The Equinox EV also comes standard with useful driver assistance and safety features like adaptive cruise control and intersection automatic emergency braking.

The federal electric vehicle tax incentive also offers drivers the opportunity to make upper trim models more affordable. The 2025 Equinox EV comes in LT 1, LT 2 ($41,900), and RS $43,400) trims. Drivers can score a 2025 Chevy Equinox EV RS with features like HD surround vision and wireless device charging for close to $35,900 with the federal electric vehicle tax credit (before additional fees).

Kia's 2025 EV6 is a sporty and affordable electric SUV

Hyundai Motor Company and its Kia and Genesis brands have launched several electric vehicle nameplates over the last few years. The best-selling EV models from the South Korean brand are the Hyundai Ioniq 5 and the Kia EV6. The Ioniq 5 features a more conservative family-friendly design while the Kia EV6's exterior is more sleek and stylish.

The 2025 Kia EV6 starts at $42,900 or $35,400 after the $7,500 federal tax rebate. It comes in a whopping eight trims. The base model Light rear-wheel drive achieves 237 miles of driving range. It produces 167 horsepower and 258 pound-feet of torque.

Kia's EV6 has "quick acceleration and sporty handling" according to a review by Edmunds. Its driving dynamics and roomy cabin make it one of the best options in its segment for the money.

The Tesla Model Y is America's most popular EV

Tesla's Model Y electric SUV is currently the best-selling electric vehicle in America according to sales data compiled by Kelley Blue Book. The American electric vehicle and clean energy company sold over 64,000 Model Y units in the first quarter.

The 2026 Tesla Model Y is newly redesigned. It has an incredible 357 miles of EPA-estimated driving range. The Model Y zooms from 0-60 miles per hour in 5.4 seconds. It starts at $44,990 or $37,490 with the federal EV tax incentive.

From practicality to performance and the user experience of the Tesla supercharger network, the Model Y is one of the best options in its segment. Its sales dominance is no surprise based on its pricing and driving range.

EVs eligible for tax credit until September:

• Acura ZDX
• Cadillac LYRIQ
• Cadillac OPTIQ
• Cadillac VISTIQ
• Chevrolet Blazer EV
• Chevrolet Equinox EV
• Chevrolet Silverado EV
• Ford F-150 Lightning
• Genesis Electrified GV70
• GMC Sierra EV
• Honda Prologue
• Hyundai Ioniq 5
• Hyundai Ioniq 9
• Jeep Wagoneer S
• Kia EV6
• Kia EV9
• Tesla Cybertruck
• Tesla Model 3
• Tesla Model X
• Tesla Model Y
• Volkswagen ID.4

You can get more information on the eligibility of specific makes and models on FuelEconomy.Gov.