The federal EV tax credit ended for vehicles acquired after September 30, 2025. The One Big Beautiful Bill Act, signed on July 4, 2025, cut off the $7,500 new clean vehicle credit, the $4,000 used clean vehicle credit, and the commercial clean vehicle credit that leasing companies used.1Internal Revenue Service. One, Big, Beautiful Bill Provisions If you bought or signed a binding contract for a qualifying EV on or before that date, you can still claim the credit when you file your return, so long as the vehicle and your income meet the rules that were in place.2Internal Revenue Service. Clean Vehicle Tax Credits If you’re shopping today, there is no federal credit waiting at the dealership or on your return.
What Counts as Acquired by the Deadline
You qualify if you acquired the vehicle on or before September 30, 2025, even if delivery came later. “Acquired” means you entered into a binding written contract and made a payment on the vehicle by the deadline.3Internal Revenue Service. Credits for New Clean Vehicles Purchased in 2023 or After A separate concept, “placed in service,” refers to the date you actually take possession, and that date determines which tax year you claim the credit on.
The distinction matters for anyone who ordered before the cutoff but faced a delivery delay. Contract signed and money down before October 1, 2025: the credit is still there when you file. No binding contract in place by that date: the credit is gone regardless of when the vehicle shows up.
Vehicle Rules That Still Apply
For pre-deadline purchases, every original qualification rule remains in force. The vehicle has to clear manufacturing, price, and battery tests before your personal eligibility matters.
Assembly and Price Caps
Final assembly had to occur in North America. You can verify this through the vehicle identification plate or the NHTSA VIN decoder.4National Highway Traffic Safety Administration. VIN Decoder MSRP caps depend on the vehicle type:
- Vans, SUVs, and pickup trucks: $80,000
- All other vehicles, including sedans and hatchbacks: $55,000
MSRP includes manufacturer-installed accessories but excludes destination charges and taxes. Vehicle classification comes from the EPA fuel economy label on the window sticker, not from how the manufacturer markets the car.5Internal Revenue Service. Topic B – Frequently Asked Questions About Income and Price Limitations for the New Clean Vehicle Credit
Battery Sourcing
The $7,500 credit splits into two halves worth $3,750 each, based on battery sourcing:6Office of the Law Revision Counsel. 26 USC 30D – Clean Vehicle Credit
- Critical minerals: a required percentage extracted or processed in the United States or a free trade partner country.
- Battery components: a required percentage manufactured or assembled in North America.
Meet both, get $7,500. Meet one, get $3,750. Meet neither, get nothing. The battery also needs at least seven kilowatt-hours of capacity.
Starting in 2024, vehicles with battery components manufactured or assembled by a “foreign entity of concern” lost the battery-components half. In 2025, the same exclusion extended to critical minerals. The covered nations are China, Russia, North Korea, and Iran.7Department of Energy. Foreign Entity of Concern Interpretive Guidance Any company headquartered in, incorporated in, or performing relevant activities in one of those countries qualifies, as does any company with 25% or more government ownership or control from a covered nation. The current list of qualifying vehicles is on fueleconomy.gov.3Internal Revenue Service. Credits for New Clean Vehicles Purchased in 2023 or After
Income Limits
Your modified adjusted gross income has to fall below these thresholds:
- Married filing jointly: $300,000
- Head of household: $225,000
- All other filers: $150,000
You can use your income from either the year you took delivery or the year before, whichever is lower.5Internal Revenue Service. Topic B – Frequently Asked Questions About Income and Price Limitations for the New Clean Vehicle Credit If you exceed the limit in both years, no credit, no matter what you bought.
Used EVs
The used credit followed the same September 30, 2025 cutoff. For qualifying pre-deadline purchases, the credit equals 30% of the sale price up to a maximum of $4,000.8Internal Revenue Service. Used Clean Vehicle Credit The rules are tighter than for new vehicles:
- Sale price of $25,000 or less, including dealer fees and installed accessories, excluding state taxes and registration.
- Model year at least two years older than the calendar year of purchase. A 2025 purchase needs a 2023 or older model.
- Purchased from a licensed dealer, not a private seller.
Income limits are lower too: $150,000 joint, $112,500 head of household, $75,000 everyone else. Like the new credit, this one is nonrefundable and can’t be carried forward.
Leased Vehicles
If you leased an EV, the credit technically went to the leasing company through Section 45W, the commercial clean vehicle credit, capped at $7,500 for vehicles under 14,000 pounds.9Internal Revenue Service. Commercial Clean Vehicle Credit The commercial credit had no foreign entity of concern restrictions and no critical mineral sourcing requirements, so more models qualified.
Whether the leasing company passed the $7,500 along to you was a business decision, not a legal requirement. Some folded it into lower monthly payments or a reduced capitalized cost. Others kept part or all of it. Check your lease agreement to see how it was handled. The commercial credit followed the same September 30, 2025 acquisition deadline.
Claiming the Credit on Your Return
If you acquired a qualifying vehicle before the deadline, here’s what filing requires.
The Seller Report
The dealership was required to submit a time-of-sale report through the IRS Energy Credits Online portal and give you a copy.10Internal Revenue Service. Clean Vehicle Credit Seller or Dealer Requirements A sale that wasn’t reported through that tool doesn’t qualify for the credit at all.11Internal Revenue Service. Frequently Asked Questions for the Dealer and Seller Energy Credits Online Registration If you don’t have the document, contact the dealership before filing.
Form 8936
You report the credit on Form 8936, Clean Vehicle Credits, attached to Form 1040.12Internal Revenue Service. About Form 8936, Clean Vehicle Credits The form asks for the VIN, the date you took possession, and information from the seller report. The placed-in-service date sets both the tax year and the version of the sourcing rules that apply.
Nonrefundable
When claimed on your return rather than transferred at the dealer, the new and used credits are both nonrefundable. The credit can reduce your federal tax bill to zero, but any excess disappears. Owe $5,000 in tax and qualify for $7,500? You get $5,000 of benefit and the remaining $2,500 is lost. No carryforward.13Federal Register. Clean Vehicle Credits Under Sections 25E and 30D; Transfer of Credits; Critical Minerals and Battery Components
If You Transferred the Credit at the Dealer
Many buyers took the credit at the point of sale, letting the dealer apply the amount as a price reduction, down payment, or cash back.14Internal Revenue Service. Topic H – Frequently Asked Questions About Transfer of New Clean Vehicle Credit and Previously Owned Clean Vehicles Credit If you used a transfer but your income for the year ends up over the limit, you owe the money back to the IRS. The repayment appears as an addition to your tax when you file for the year the vehicle was placed in service. You still file Form 8936 to report the transfer and your eligibility even though the money is already in hand. Repay the IRS directly; do not try to reverse the transaction with the dealer.
State Incentives Are Separate
The federal cutoff doesn’t touch state programs. Some states still offer EV rebates, tax credits, or reduced registration fees, with amounts and eligibility that vary widely. A few states have gone the other direction and imposed higher registration fees on electric vehicles to recoup lost fuel tax revenue. Check your state’s energy office or department of revenue for current programs, since these change on their own schedule.