Washington sees 11th-hour rush to buy EVs before tax incentive disappears

Electric-vehicle sales in Washington are lagging far behind targets the state has set for adoption of the climate-friendly vehicles.

After surging in 2024, sales have mostly sagged in 2025. But with federal tax breaks for purchasing electric vehicles disappearing at the end of September, sagging interest in plug-in vehicles has surged, at least temporarily, data from the Washington Department of Licensing shows.

One in four new cars sold in Washington in August can plug into an electrical outlet, the highest market share since October 2024. That was when a state-funded rebate program quickly ran out of money after helping 6,000 Washingtonians go electric.

“There's definitely been an increase that is tangible that we all see for the last 60 days or so, probably spurred by the federal tax credit ending here shortly,” said Kia of Puyallup dealership president Ryan Sawyer.

President Donald Trump’s broad spending and tax bill, passed in July, eliminates a $7,500 tax credit for buyers of new EVs and $4,000 credit for used EVs on Oct. 1. Those clean-vehicle tax credits were created in 2022 as part of former President Joe Biden’s agenda to boost adoption of climate-friendly technologies.

Electric vehicles’ share of new passenger-vehicle sales in Washington averaged 22% in 2024 and hit 25% in January 2025 before tumbling after President Donald Trump retook office. Since February, EVs’ market share has averaged 17%.

Federal support for clean cars has evaporated, and many potential buyers disapprove of Tesla CEO Elon Musk's efforts to help dismantle federal agencies for the Trump administration.

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Washington state’s sales-tax exemption for electric cars, in place since 2019, expired in July.

Washington’s state requires 35% of model year 2026 vehicles, some of which are already at car dealerships, to run on electricity or hydrogen, with that percentage ramping up annually to 100% by 2035. Dealers can apply credits from the previous year's EV sales to meet the requirement.

Washington’s clean-vehicle requirements are currently in limbo as states including California and Washington are fighting the Trump administration’s attempt to block their clean-vehicle laws.

Though this year’s sales are not keeping pace with state requirements, electric vehicles are much more common on Washington roadways than in many states.

“Washington is second in the nation, behind California, for EV adoption. We have 250,000 vehicles on the road right now,” Josh Grandbouche with the Washington Department of Ecology said.

Nationally, electric vehicles and plug-in hybrids had a 9.5% market share in the first six months of 2025, according to the Electric Power Research Institute.

Grandbouche said the exhaust-free vehicles make sense even without state or federal tax breaks.

“The vehicles are already cheaper to own, in a lot of cases,” Grandbouche said. “Fueling these vehicles up is about $1 a gallon equivalent, if you're charging at home.”

Transitioning away from gas and diesel engines is central to Washington state’s push to eliminate climate-harming pollution.

Gov. Bob Ferguson announced on Monday that the state intends to provide new incentives for clean vehicles, with specifics to be determined after gathering public input. Any new tax breaks, rebates, or other incentives would have to be passed by the state legislature.

Those subsidies would not be available to drivers wanting to switch from climate-harming vehicles to climate-friendly ones until July.

Tesla remains the dominant maker of electric vehicles in the Washington state market, though its share of EV sales has fallen to 34% since Trump took office, down from 41% in 2024, according to Department of Licensing data.