(TNND) — The electric vehicle tax credit is ending this fall, more than seven years sooner than it was previously set to sunset.

Republicans used President Donald Trump's massive "One Big Beautiful Bill Act" to roll back green energy subsidies.

The $7,500 EV credit, which stemmed from former President Joe Biden’s 2022 Inflation Reduction Act, was among the green energy incentives targeted in the name of boosting American energy and consumer choice.

Trump previously called Biden’s push for EV adoption “insane” and told supporters that it would “totally obliterate the U.S. auto industry.”

Rolling back the subsidies will also help pay for Trump’s tax cuts and policy priorities, including more border security.

So, the EV tax credit will now end on Sept. 30 of this year, no longer December 2032.

Sean Tucker of Kelley Blue Book said EV sales should spike this quarter and fall back to earth to end the year.

“We're expecting a rush of buyers as the deadline gets nearer,” he said. “And then we don't know what the EV market looks like without that support here in the United States.”

Tucker pointed to a study published last fall that found ending the tax credit could cut EV sales by up to 27%.

EVs cost about $8,000 more on average than all new cars, according to KBB. So, the tax credit can go a long way in putting an EV in the same price range as a gas-powered car.

Dealers sold more than 300,000 EVs last quarter, but EVs still account for less than 10% of the overall American automotive market.

There are restrictions on the $7,500 EV tax credit related to income, where the vehicle is built, and from where its parts are sourced.

Tucker said some of those restrictions were intended to discourage automakers from sourcing critical minerals from China.

It’s unclear how removing the tax credit, along with tariffs, will impact supply chain decisions for automakers. But Tucker said the car companies will go with the cheapest option.

EV leases also qualify for the tax credit. And eligible used EVs qualify for a $4,000 credit.

Customers used to have to wait and claim the credit on their next tax return, Tucker said. But that changed at the beginning of last year. Now, customers can effectively use the $7,500 as a down payment by signing the tax credit over to the dealer.

The American automotive market does not exist in on an island, Tucker said.

And the International Energy Agency estimates that as many as a quarter of all new cars could be electric this year.

EV prices should continue to drop as the market matures, Tucker said. But car companies, both domestic and foreign, might be forced to pick between markets if Americans aren’t demanding as many EVs as the rest of the world.

“And if you are a global automaker that sells on multiple continents, that's your reality right now,” Tucker said. “The question is, what does this do to some of the companies that are more focused in America? We may see some of them switch an emphasis back to gas-powered cars, but that risks falling behind the competition globally and effectively making a company more regional."

SEE ALSO: Tax cuts take effect before spending cuts in 'One Big Beautiful Bill'

Tucker said he was surprised to hear Ford CEO Jim Farley call his company a “regional business” during the last earnings call, though Farley also called Ford a global company.

“I don't think most automakers see themselves as regional businesses anymore, but I think some of the American companies are starting to see themselves that way because the rules are just so different in this market all of a sudden,” Tucker said.

The OBBB also took away fines that automakers faced for missing fuel economy standards.

That, too, might remove an incentive for automakers to invest in EVs.

For example, Tucker noted that Stellantis – which makes Ram, Jeep and Dodge, among other brands – recently announced that it was going to continue building the HEMI V-8 engine that it had planned to shut down. And the company plans to relaunch its SRT performance division that builds powerful cars that run on gas.