EV Tax Credit Deadline 9-30

If you’re thinking about buying an electric car or plug-in hybrid, now may be a good time to buy as the federal tax credit of up to $7,500 for qualifying new electric vehicles (EVs) and $4,000 for used expires on Sept. 30, 2025. The credits were originally available until 2032 to help: drive the transition towards a cleaner transportation system; foster long-term planning, investment and innovation; and build a robust and competitive EV manufacturing industry in the US. The credits were eliminated due to the budget reconciliation bill, known as the “One Big Beautiful Bill Act”, signed into law by President Trump on July 4, 2025.

Qualified buyers can still claim the tax credit on “eligible vehicles” placed in service before Oct 1, 2025. Eligibility for the credit depends on where EVs are made, where their battery components and minerals come from, how much they cost, and how much buyers earn. The credit can be taken as an instant rebate, lowering your upfront cost and eliminating any uncertainty that changing federal policies might create.

To qualify for a new car tax credit, your household can have an adjusted gross income of up to $300,000. If you’re filing as a head of household, you must earn below $225,000, and individual filers will qualify only with income below $150,000.

Eligible new EVs are available from Acura, Cadillac, Chevrolet, Chrysler, Ford, Genesis, GMC, Honda, Hyundai, Jeep, Kia and Tesla. See the full list at https://fueleconomy.gov/feg/tax2023.shtml. Check with the dealer to confirm eligibility of your specific vehicle as not every version will necessarily qualify.

If an EV doesn’t qualify, you may still be able to get the credit via leasing. Due to a legislative loophole ending Sept 30th, the lessor can take the tax credit and choose to pass the savings along to you even if your income would otherwise disqualify you. Ask your dealer for details.

Even without federal incentives, there are strong financial reasons to consider buying an EV. Typically, they are cheaper to own long-term as they cost less to fuel and require less maintenance since they have fewer moving parts to maintain.

EV sales in China for June 2025 exceeded total US car sales for the month. Let’s not sit back and watch as China and the rest of the world rush ahead with electric cars and clean energy while the US doubles down on traditional cars and fossil fuels.