During the qualifying sessions for the 2007 Daytona 500, officials found holes in the wheel-wells of his Dodge Charger. A crew member said it was just a tape that covered the hole fell off. Officials said that the tape had been cut. He was one of the four drivers among Matt Kenseth and his two teammates, Scott Riggs and Elliott Sadler whose cars had been found with aerodynamic-improving modifications. His team was one of the six teams found with illegal modifications in the Daytona festivities.
On March 9, 2007 Kasey Kahne won the pole for the UAW-DaimlerChrysler 400 making him eligible for the 2008 Budweiser Shootout.
On May 26, 2007 Kahne won the Busch Series Carquest Auto Parts 300 race at Lowe's Motor Speedway scoring his first win of 2007.
On August 24, 2007 Kasey won the pole for the Sharpie 500 at Bristol Motor Speedway, his second pole of the 2007 NEXTEL Cup season. Later that night, during the Busch Series Food City 250, Kahne passed Ryan Newman on the top side in a 3-wide pass that included Jason Leffler on the bottom. He held off the hard charging Leffler to win the Food City 250 for his 7th career Busch Series win and his 2nd of 2007.
The next day during the Sharpie 500, Kahne dominated most of the race leading 305 of 500 laps and finished 2nd to Carl Edwards. This is currently his best finish of the 2007 season.
On September 18, 2007 Budweiser was unveiled as Kasey Kahne's 2008 sponsor, Allstate will also become a part time sponsor on Kasey Kahne's car (previously only appearing on his driver uniform). During some races Allstate will run as the primary sponsor.