Electric vehicle sales have surged ahead of the expiration of tax credits for purchases on Tuesday.

Dealerships have seen EV sales rise sharply after they encouraged customers to purchase battery-powered vehicles to take advantage of the credits before they expire. Rho Motion found that EV sales in North America, which includes the U.S., Canada, and Mexico, rose by 6% year-to-date as of last month.

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Cox Automotive projected that EV sales from July to September are up 21.1% from the same period last year, and up 30% compared to Q2. 

The credits, which have been in place in various forms for more than a decade and were expanded in the Democrat-passed 2022 Inflation Reduction Act, were set to expire Tuesday under the One Big Beautiful Bill Act, which President Donald Trump signed on July 4 and slashed hundreds of billions of dollars in clean energy tax credits.

Until Tuesday, consumers received up to $7,500 for purchasing a new EV and $4,000 for a used one as a means of encouraging consumers to buy battery-powered vehicles rather than gas-powered cars.

“A key contributor to sales in recent months has been an increase in EV sales, as buyers rush to market before the $7,500 tax credits expire at the end of September,” Charlie Chesbrough, senior economist at Cox Automotive, said in a statement. 

Since taking office, Trump has moved to roll back policies and incentives that promote the electric vehicle industry, arguing they are costly and coercive. Trump has vowed to end the national “EV mandate,” which includes measures like emissions limits or requirements for automakers to produce a certain number of EVs. 

“We will revoke the electric vehicle mandate, saving our auto industry and keeping my sacred pledge to our great American autoworkers,” Trump said in his inauguration speech. “In other words, you’ll be able to buy the car of your choice.”

Albert Gore, executive director of the Zero Emission Transportation Association, said in a statement that the tax credit was a “powerful demand signal” that helped move battery and mineral supply chains out of China and encouraged investment in U.S. battery production. 

“The end of this credit removes one of the most effective levers we have seen in onshoring jobs, creating new economic opportunities for Americans, and making the United States more globally competitive,” he added. 

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Experts expect a decline in EV sales once the tax credits expire. According to the Congressional Research Service, OBBBA’s repeal of the credits could result in a 25%-30% decline in EV sales.

Loren McDonald, CEO and chief analyst at EV charging data firm Chargeonomics, said via email that EV sales will “clearly be down” over the next few quarters, thanks to the lack of incentives and deals.

Still, McDonald said, affordable EVs like the updated Nissan LEAF and Chevrolet Bolt will continue to be available at dealerships in the coming years. 

“Between the end of the federal tax credit and shifting strategies from many automakers, 2026 in the U.S. is clearly going to be a down and transitional year for EV sales, but with dozens of compelling new EV coming to market in the next two years, 2027 should start the next growth phase for the rest of the decade,” McDonald said. 

And buyers who purchased an EV before Tuesday have received some flexibility from the Internal Revenue Service.

In August, the IRS modified the phase-out of the electric vehicle tax credits, stating that if a consumer has a written binding contract in place and payment has been made on or before the expiration date, then the buyer may still claim the credit. That means buyers will be able to receive the tax credit even if the car is delivered after the Sept. 30 deadline.

The change could benefit automakers who cannot increase production quickly to meet demand. Under the new rules, they can continue building and selling qualifying vehicles after the deadline, as long as the contract was in place before the cutoff. The IRS has not set a specific deadline for when these vehicles must be delivered.