For vehicles acquired after September 30, 2025, there is no federal EV tax credit in 2026. The One Big Beautiful Bill Act (P.L. 119-21) ended the new clean vehicle credit, the used clean vehicle credit, and the commercial clean vehicle credit on that date, seven years ahead of their original 2032 sunset.1Office of the Law Revision Counsel. 26 USC 30D – Clean Vehicle Credit One narrow exception exists for buyers who signed a binding contract and paid before the cutoff, and one separate federal credit for home charger installation survives until June 30, 2026.
What Ended on September 30, 2025
The Inflation Reduction Act of 2022 created credits worth up to $7,500 for new clean vehicles under Section 30D and up to $4,000 for used ones under Section 25E, with a parallel commercial credit under Section 45W. Congress moved all three termination dates forward to September 30, 2025. The IRS has confirmed that no credit is available for any vehicle acquired after that date, regardless of when it is delivered or placed in service.2Internal Revenue Service. Clean Vehicle Tax Credits
The acquisition date controls, not the delivery date. A vehicle you ordered in late 2025 and picked up in 2026 does not qualify unless it fits the transition rule below.
The Only Way to Claim the Credit in 2026
If you entered a binding written contract and made a payment on a qualifying vehicle on or before September 30, 2025, the IRS treats that as the acquisition date. You can still claim the credit on your return even if you take delivery in 2026, as long as every other eligibility rule is met.2Internal Revenue Service. Clean Vehicle Tax Credits
This is a narrow window. If you are shopping for an EV now with no pre-cutoff contract in hand, the transition rule does not help you, and no federal purchase credit applies.
Rules That Still Apply Under the Transition
Buyers claiming the credit for a 2026-delivered vehicle must still satisfy the original Section 30D requirements.
Vehicle Requirements
Final assembly must have occurred in North America. The Department of Energy’s VIN decoder confirms assembly location.3Alternative Fuels Data Center. Electric Vehicles with Final Assembly in North America The vehicle must be new, purchased for personal use, and powered by a battery of at least 7 kilowatt-hours. The manufacturer’s suggested retail price must fall under the applicable cap:
- Vans, SUVs, and pickup trucks: $80,000
- All other vehicles: $55,000
These caps include factory-installed options but exclude destination charges and dealer add-ons.4Internal Revenue Service. Topic B – Frequently Asked Questions About Income and Price Limitations for the New Clean Vehicle Credit
The credit is worth $3,750 for meeting the critical minerals sourcing test, another $3,750 for the battery component test, and $7,500 for meeting both. For vehicles placed in service in 2026 under the transition rule, both thresholds sit at 70 percent.1Office of the Law Revision Counsel. 26 USC 30D – Clean Vehicle Credit Any battery with critical minerals or components sourced from a foreign entity of concern (companies tied to the governments of China, Russia, Iran, or North Korea) disqualifies the vehicle entirely.5Department of Energy. DOE Releases Final Interpretive Guidance on the Definition of Foreign Entity of Concern
Income Limits
Your modified adjusted gross income must fall at or below the threshold for your filing status:
- Married filing jointly or surviving spouse: $300,000
- Head of household: $225,000
- All other filers: $150,000
You can use the lower of your income in the year you take delivery or the year before, so a one-year spike above the threshold does not automatically disqualify you.6Internal Revenue Service. Credits for New Clean Vehicles Purchased in 2023 or After Modified adjusted gross income for this credit is your AGI plus certain excluded foreign income; if you claim no foreign exclusions, it is simply your AGI.7Internal Revenue Service. Modified Adjusted Gross Income
Filing the Credit
Claim the credit on Form 8936 and its Schedule A, reporting the vehicle’s 17-character VIN, the placed-in-service date, and your modified AGI for the current and prior year.8Internal Revenue Service. About Form 8936, Clean Vehicle Credit The dealer must have submitted a time-of-sale report through the IRS Energy Credits Online portal; without that report on file, the IRS will not allow the credit.9Internal Revenue Service. Energy Credits Online Keep your copy.
The credit is nonrefundable. It reduces your federal income tax to as low as zero, but any unused portion is lost rather than refunded or carried forward. If your total tax for the year is $5,000 and your credit is $7,500, you save $5,000 and the remaining $2,500 disappears.6Internal Revenue Service. Credits for New Clean Vehicles Purchased in 2023 or After Inflating the credit can trigger a 20 percent accuracy-related penalty on the underpayment.10Office of the Law Revision Counsel. 26 U.S. Code 6662 – Imposition of Accuracy-Related Penalty on Underpayments
Point-of-Sale Transfer Recapture
Many 2025 buyers transferred the credit to their dealer at the point of sale in exchange for an immediate price cut or check. The attestation you signed about your income was not the final word. If your actual modified AGI for the year exceeds the threshold, you must repay the entire transferred amount as additional tax when you file. You repay the IRS, not the dealer.11Internal Revenue Service. Frequently Asked Questions About Transfer of New Clean Vehicle Credit and Previously Owned Clean Vehicles Credit Anyone whose income landed near the threshold should run the numbers carefully before filing a 2025 return in 2026.
The Home Charger Credit Through June 30, 2026
One federal EV-related credit still applies in 2026. Section 30C covers 30 percent of the cost of purchasing and installing an EV charger at your home, up to $1,000 for residential property. The credit is available for equipment placed in service through June 30, 2026.12Alternative Fuels Data Center. Alternative Fuel Infrastructure Tax Credit
There is a location catch. Your home must sit in an eligible census tract, meaning either a low-income community or a non-urban area where at least 10 percent of census blocks are outside urban designations. Eligible tracts cover roughly 99 percent of U.S. land area and about 62 percent of the population, so most suburban and rural addresses qualify while dense urban cores often do not. The IRS publishes appendices listing eligible tracts by state.
The credit is nonrefundable, so it reduces your tax bill but produces no refund on its own. If a home Level 2 charger is on your list, installing before June 30 is the last chance at this federal benefit.
What State Programs Still Offer
With the federal purchase credits gone, state and local programs are the remaining source of EV incentives. Many states offer purchase rebates in the $1,000 to $4,000 range for new EVs, and separate rebates for home charger installation that range from around $250 to several thousand dollars. Eligibility varies: some programs target lower-income buyers, others are open to any qualifying purchase.
Watch the other direction too. Most states now charge an additional annual registration fee on electric vehicles to make up for lost gasoline tax revenue, ranging from nothing in a few states up to around $250 per year. Check your state’s motor vehicle or energy office for current rebates, income limits, and deadlines. These programs are independent of the federal repeal and change frequently.