As the end of 2025 approaches, American consumers face a ticking clock on a trio of federal incentives that have shaped the way people buy cars, upgrade their homes, and manage their finances. With deadlines looming for electric vehicle (EV) tax credits, new auto loan interest deductions, and home energy-efficiency rebates, many are scrambling to take advantage of these programs before the benefits disappear. The upshot? There are still thousands of dollars in savings on the table, but acting quickly is essential.
First and foremost, the federal government’s EV tax credits are set to expire on September 30, 2025. According to Car and Driver, buyers who take delivery of a qualifying new electric vehicle before this date can still claim up to $7,500 in rebates. That’s a significant sum—enough to tip the scales for many would-be EV owners. But the window is narrowing, and the selection of eligible models has shrunk after changes earlier this year.
Despite the reduced list, there are still compelling choices for a wide range of drivers. The 2025 Hyundai Ioniq 5 SE, for example, offers 318 miles of electric range and starts at just over $40,000 before rebates. For those with a need for speed, the 2025 Hyundai Ioniq 5N boasts a jaw-dropping 641 horsepower—more than a Lamborghini Huracán, as Car and Driver notes—and earned a rare 10/10 rating from reviewers. Meanwhile, the Ford F-150 Lightning XLT, America’s best-selling full-size pickup, can be had for under $50,000 before factoring in the federal rebate. That means small businesses and DIY enthusiasts alike can benefit from a powerful, practical truck at a much more palatable price.
Families haven’t been left out, either. The 2026 Kia EV9 Land trim provides three rows of seating, all-wheel drive, and a 280-mile range—ideal for school runs and grocery hauls. As Car and Driver points out, this model comes packed with tech and comfort features, making it a strong contender for anyone with a growing brood.
But it’s not just about the purchase price. Thanks to new federal legislation, buyers of new vehicles have another way to save: a tax deduction for interest paid on auto loans. Under the budget bill signed into law earlier this year, consumers can deduct up to $10,000 a year in interest on eligible auto loans initiated between 2025 and 2028. And here’s the kicker—you don’t have to itemize deductions to take advantage. That’s a big deal for the vast majority of taxpayers, who typically stick with the standard deduction.
There are some strings attached, of course. The deduction applies only to new passenger vehicles with a gross vehicle weight rating (GVWR) under 14,000 pounds, and final assembly must take place in the United States. Used cars are entirely excluded, and only purchases for personal (not business) use are eligible. Income limits also apply: for single filers, the deduction begins to phase out at $100,000 and disappears entirely at $150,000. For married couples filing jointly, the phase-out starts at $200,000 and ends at $250,000. The deduction is reduced by $200 for every $1,000 above the threshold.
To illustrate, Car and Driver offers the example of a 2025 Toyota Highlander XSE, assembled in Kentucky and financed over five years at a 6% interest rate. For a married couple earning $160,000, the first year’s interest deduction would yield about $604 in tax savings. Over the life of the loan, the total tax benefit might approach $1,936, depending on how quickly the loan is paid down. For those financing higher-priced vehicles, the savings could be even more substantial.
Of course, not every car is eligible. Some domestic-brand vehicles are actually assembled abroad, while certain foreign brands operate U.S. manufacturing plants. To verify eligibility, buyers can use the National Highway Traffic Safety Administration’s VIN decoder tool, which reveals the vehicle’s final assembly location. It’s a small step that could mean big savings come tax time.
The new deduction is expected to cost the U.S. Treasury $31 billion over four years, according to government estimates. While the financial impact on most buyers will be modest—especially those purchasing vehicles around the median price of $48,000—it’s a welcome relief as car prices continue to climb. For many, the deduction could be the deciding factor when choosing between two similar vehicles.
Meanwhile, homeowners are facing their own deadline as federal tax credits for energy-efficient appliance upgrades are set to expire on December 31, 2025. As Realtor.com reminds readers, incentives under the Inflation Reduction Act will begin to phase out after this date. The High-Efficiency Electric Home Rebate Act program, for instance, offers up to $2,000 in rebates for qualifying induction stove projects, though the typical rebate is around $840. Eligibility depends on household income, with low-income families qualifying for the full amount and median-income households potentially receiving partial rebates, depending on their state.
Why the push for induction stoves? Unlike gas stoves, induction cooktops don’t emit harmful pollutants, reducing the risk of respiratory issues like asthma. They also heat up faster and are easier to clean—a win-win for busy households. For those unable to commit to a full kitchen renovation, plug-in portable induction burners start at just $50, offering an affordable entry point to the technology.
Pairing induction appliances with solar energy can drive household energy costs down to near zero. Services like EnergySage help homeowners compare solar installation quotes, potentially saving up to $10,000 on the switch. And for those looking to make an even bigger dent in their utility bills, upgrading HVAC systems to heat pumps can save an average of $400 per year on energy costs, according to Realtor.com.
Many who’ve made the leap to induction cooking report positive experiences. As one Oregon reader told TCD, “A portable induction cooktop is a great way to try out induction for a low cost and get used to the technology while improving indoor air quality.” Another reader added, “We’ve learned how unhealthy it is to be in close proximity to a gas stove so decided to go with an induction stove.”
With these federal incentives set to expire soon, the message is clear: whether you’re shopping for a new car, considering a loan, or looking to upgrade your home, now is the time to act. The savings may not last, but for those who move quickly, the benefits can be substantial—and lasting.
