Showrooms from the suburbs to the city reported a sharp uptick in inquiries this week as shoppers try to secure the federal clean-vehicle credit before it lapses. The tax break—enacted under the Inflation Reduction Act and administered at the point of sale—has provided up to $7,500 for new zero-emission vehicles and up to $4,000 for certain used EVs. With lawmakers offering no near-term consensus on an extension, dealers say many buyers are accelerating purchase decisions to capture the incentive.

“At least half of the customers on our lot today specifically asked whether they could still get the credit,” said a general manager at a mid-sized dealer outside Baltimore. “We’re scheduling deliveries and pulling allocations forward as quickly as manufacturers will allow.” Several dealers in California, Texas and the Northeast reported similar patterns: increased showroom traffic, more trade-in appraisals and heavier demand for in-stock qualifying models.

Industry analysts caution that the surge may be concentrated and short-lived. EVs accounted for about one in ten new-vehicle purchases in recent months, a share that has expanded rapidly over the past decade as prices fell and model choice widened. But the point-of-sale credit has been a central affordability hinge for many buyers; without it, effective prices on some models would jump by several thousand dollars at the point of sale, potentially tilting purchase decisions back toward gasoline vehicles.

The immediate market effects are already visible at the dealer level. Dealers report tighter inventory of vehicles that meet the credit’s domestic assembly and critical-minerals rules, because manufacturers adjusted allocations in anticipation of heightened demand. That constraint gives dealers leverage to resist large discounts and in some cases to ask for deposit commitments. Lenders and captive finance arms are offering short-term incentives and expedited financing to close deals before the deadline, dealers said.

Policy analysts note that the rebate was designed not only to lower sticker prices but to reshape the auto supply chain by favoring vehicles with U.S.-assembled batteries and domestically sourced materials. “The point-of-sale credit amplified near-term demand but, more important, it influenced where companies invest to qualify,” said an energy policy analyst at a Washington think tank. If it expires, automakers may pause additional investments tied directly to qualifying vehicles, complicating long-term planning around battery factories and supplier networks.

The expiration also has fiscal and environmental implications. Short-term sales spikes could temporarily raise EV registrations and reduce gasoline consumption, but a cliff at the point of sale could slow the adoption curve and make state and federal emissions targets harder to meet. Economists warn that the policy’s removal would be a natural experiment in subsidy dependence: some buyers will be pulled forward, others delayed indefinitely.

Congress faces a choice that balances near-term budget trade-offs against long-term industrial policy and climate goals. For dealers and prospective buyers, the practical decision is immediate: buy now or risk paying more later. For manufacturers and policymakers, the choice will shape whether the U.S. automotive transition sustains momentum beyond subsidy-driven demand.