Trump Ended the EV Tax Credit: Deadlines, Contracts, and Charger Rules

The federal EV tax credit end date was September 30, 2025. The One Big Beautiful Bill Act (P.L. 119-21), signed on July 4, 2025, repealed all three federal electric vehicle tax credits created by the Inflation Reduction Act. If you acquired a qualifying EV on or before September 30, 2025, you can still claim the credit on your 2025 tax return. If you’re shopping now, there is no federal credit on the purchase.

Which Credits Ended and When

Three credits went away on the same date:

The new clean vehicle credit under Section 30D, worth up to $7,500, is not allowed for any vehicle acquired after September 30, 2025.¹
The used clean vehicle credit under Section 25E, worth up to $4,000, ended the same day.²
The commercial clean vehicle credit under Section 45W, which covered business purchases and drove the leasing “loophole” that let consumers capture the full $7,500 through a lease, was terminated effective September 30, 2025.³

Because the commercial credit was repealed alongside the others, new leases signed after September 30, 2025, carry no federal tax benefit for either the leasing company or the driver.³ The Inflation Reduction Act had originally authorized these credits through 2032.

If You Signed a Contract Before the Cutoff

The date that matters is when the vehicle was acquired, not when it was delivered. The IRS treats a vehicle as acquired on the date you entered a binding written contract and made a payment. A nominal down payment or a vehicle trade-in counts as a qualifying payment.⁴

So if the contract was signed and payment was made on or before September 30, 2025, the credit is still available even when the car arrives later. You do have to actually take possession before claiming the credit, because the credit is tied to the year you place the vehicle in service.¹ The same transition rule applies to used EV purchases under Section 25E and to commercial vehicles under Section 45W.

How to Claim the Credit on Your 2025 Return

File IRS Form 8936 with your 2025 tax return. This is required whether you took the credit as a point-of-sale discount at the dealership or plan to claim it against your tax bill. If you transferred the credit to the dealer at purchase, you still file Form 8936 to reconcile the transfer.¹

One point that surprises buyers: if you transferred the credit at the dealership and your actual tax liability ends up smaller than the credit amount, you don’t owe the difference back. The IRS confirmed the excess is not subject to recapture from the dealer or the buyer.⁵

Eligibility Rules Still Apply to Pre-Cutoff Purchases

Meeting the deadline is necessary but not sufficient. A vehicle acquired on or before September 30, 2025, still has to satisfy the original eligibility rules to generate a credit.

Income and Price Caps

For the new vehicle credit under Section 30D, modified adjusted gross income (using either the purchase year or the prior year, whichever is lower) had to fall below:

$300,000 for married filing jointly
$225,000 for head of household
$150,000 for all other filers

Vans, SUVs, and pickups were capped at $80,000 MSRP; sedans and other vehicle types at $55,000.⁶

The used credit had tighter limits: a maximum sale price of $25,000, and income ceilings of $150,000 joint, $112,500 head of household, and $75,000 otherwise. The credit itself is 30% of the sale price, up to $4,000.²

Battery Sourcing and Assembly

The $7,500 new vehicle credit split into two $3,750 halves. One half required a threshold percentage of critical minerals to be extracted or processed in the United States or a free trade partner. The other required battery components manufactured or assembled in North America, and final vehicle assembly also had to occur in North America.⁶ Vehicles with battery components from a Foreign Entity of Concern were disqualified entirely.⁷ These rules are why many well-known EVs qualified for only $3,750, or nothing at all.

The Home Charger Credit Runs Until June 30, 2026

One adjacent tax break outlived the vehicle credits. The alternative fuel vehicle refueling property credit under Section 30C covers 30% of the cost of installing a home EV charger, up to $1,000 for residential property. It is not allowed for any charger placed in service after June 30, 2026.⁴

A geographic restriction applies: the charger must be installed in an eligible census tract, defined as either a low-income community or a non-urban area. Homes outside these tracts don’t qualify regardless of installation date.⁸

State Programs for 2026 Shoppers

With the federal credits gone, state programs are the remaining source of purchase help. More than 30 states offer at least one EV-related incentive in 2026, including point-of-sale rebates, income tax credits, sales tax exemptions, and reduced registration fees. Amounts vary by state, buyer income, and vehicle type, and some programs target lower-income buyers or add bonuses for trading in older, high-emission vehicles. Check your state’s program before assuming the sticker price is the final number.

1
Internal Revenue Service. Credits for New Clean Vehicles Purchased in 2023 or After
2
Internal Revenue Service. Used Clean Vehicle Credit
3
Congressional Research Service. The Tax Credit Exception for Leased Electric Vehicles
4
Internal Revenue Service. FAQs for Modification of Sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, and 179D Under Public Law 119-21
5
Internal Revenue Service. Topic H – Frequently Asked Questions About Transfer of New Clean Vehicle Credit and Previously Owned Clean Vehicles Credit
6
Office of the Law Revision Counsel. 26 U.S.C. 30D – Clean Vehicle Credit
7
U.S. Department of Energy. DOE Releases Final Interpretive Guidance on the Definition of Foreign Entity of Concern
8
Argonne National Laboratory. Refueling Infrastructure Tax Credit