EV Tax Credits: What Actually Exists Right Now

The federal purchase credit has ended

The federal "New Clean Vehicle Credit" (up to $7,500) and the used EV credit (up to $4,000), both under Internal Revenue Code Section 30D, ended for vehicles acquired after September 30, 2025. The One Big Beautiful Bill Act, signed in July 2025, accelerated the termination of this and several other clean-energy tax credits. If you're buying an EV in 2026, there is currently no federal purchase tax credit available. Plan your budget around the vehicle's actual price, not a credit that no longer applies.

The one narrow exception: a vehicle can still potentially qualify if it was acquired on or before September 30, 2025: generally demonstrated by a binding written purchase contract and a payment made by that date, even if delivery happened later. This doesn't help anyone shopping new in 2026.

How the credit used to work (for context)

Since this comes up often: the credit that ended was up to $7,500 for new EVs and $4,000 for used ones, subject to income caps (based on your tax filing status), price caps on the vehicle itself, and manufacturing requirements around battery components and final assembly location. Later in its life, the credit could be transferred to the dealer at the point of sale as an immediate price reduction rather than waiting for tax filing. None of these mechanics apply to new purchases anymore; this is purely historical context.

What about the home charger credit?

A separate federal credit (Section 30C) for home EV charging equipment (30% of cost, capped at $1,000) remained active longer, but only through June 30, 2026. Depending on when you're reading this, that credit may have already expired too. Check current IRS guidance before assuming it still applies to a charger installation.

State and utility incentives may still exist

Federal incentives ending doesn't mean all incentives are gone: many states and individual utilities run their own EV rebate or incentive programs independently of federal policy, and these vary enormously by location and change on their own schedules. Check your specific state's energy office or your utility company's website directly; there's no reliable way to summarize 50 states' worth of independently-changing programs in one place without it going stale immediately.

How to factor this into your decision

Use the EV's actual out-the-door price (without assuming any credit) in our EV vs. gas cost calculator and lease vs. buy calculator. If you do find a state or utility incentive you qualify for, subtract it from the purchase price manually, since that's a safer default than building an assumption into the calculator that won't be true for most readers.