Trump axed the EV tax break. Can states replace it?

By David Ferris | 10/08/2025 06:53 AM EDT

A growing number of state and local governments are boosting incentives to encourage electric vehicle sales.

Unsold electric Lyriq utility vehicles sit in a row outside a Cadillac dealership in Lone Tree, Colorado.

Electric Lyriq utility vehicles sit in a row outside a Cadillac dealership in Lone Tree, Colorado. David Zalubowski/AP

As the Trump administration phased out the $7,500 federal tax credit for electric vehicles last week, one Vermont city launched a countermeasure.

Burlington declared it would more than double its rebate, to $5,000, for a new EV.

“We are prepared to continue leading on clean energy and electrification efforts,” Mayor Emma Mulvaney-Stanak said at the time.

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It was part of a small but potentially significant shift among state and local governments seeking to pick up the baton after the Trump administration and congressional Republicans cut short the Biden-era tax credit for new electric vehicles.

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