Time is running out for one of the most generous incentives for electric vehicle (EV) buyers in the United States. As part of the latest federal legislation, the EV federal tax credit ending September 30, 2025. If you’re considering buying or leasing an electric vehicle, now is the time to act before the window closes.
⚡ What Is the EV Federal EV Tax Credit Ending Mean For You?
The Federal Clean Vehicle Tax Credit is a government program that offers:
- Up to $7,500 for qualifying new EVs
- Up to $4,000 for eligible used EVs
To qualify, vehicles must meet certain requirements for price, battery sourcing, assembly, and income eligibility.
👉 Check if your EV qualifies here
🗓️ When Does the EV Federal Tax Credit Ending Take Effect?
The Inflation Reduction Act originally expanded the EV tax credit, but new legislation passed in mid-2025 sets an expiration date:
- ✅ Last day to qualify: September 30, 2025
- 🚫 After this date, no new or used EV purchases will be eligible for federal tax credits
- 📦 Leased vehicles must also be delivered before this deadline to claim any associated credit pass-through benefits
🔍 Who Is Still Eligible?
Until the deadline, buyers must meet the following:
For New EVs:
- MSRP under $55,000 (cars) or $80,000 (SUVs/trucks)
- Adjusted Gross Income (AGI) under:
- $150,000 for single filers
- $225,000 for heads of household
- $300,000 for joint filers
- Vehicle must meet domestic manufacturing & battery requirements
For Used EVs:
- Must be purchased from a dealer
- Vehicle must be at least two years old
- Sale price below $25,000
- AGI under:
- $75,000 for single filers
- $112,500 for heads of household
- $150,000 for joint filers
🧾 Credit is claimed via IRS Form 8936 at tax time — or at the point of sale starting in 2024.
💸 Why This Matters to You
Missing this deadline could cost you thousands in lost incentives. Here’s what it could mean:
- ✅ Buy now: Get up to $7,500 off your new EV purchase
- ✅ Lease now: Dealers may pass credits to you in the form of lower monthly payments
- ✅ Used EVs: Save up to $4,000 if purchased before the cutoff
🛒 View top-rated EVs eligible for the tax credit →
⚡ Compare EV home chargers →
🚗 Find EV insurance quotes →
🔧 What Happens After the Credit Ends?
With the EV federal tax credit ending:
- EV prices could increase as demand surges before the deadline
- States with additional rebates may still offer savings (e.g., California, New Jersey, Colorado)
- Automakers may adjust pricing or financing to remain competitive
🗺️ Check your state’s EV incentives →
🔥 Best EVs to Buy Before the Credit Ends
| Model | Credit Amount | Starting MSRP | Eligible Through |
|---|---|---|---|
| Tesla Model 3 RWD | $7,500 | $38,990 | Sept 30, 2025 |
| Ford F-150 Lightning | $7,500 | $49,995 | Sept 30, 2025 |
| Chevy Bolt EUV | $7,500 | $27,800 | Sept 30, 2025 |
| Nissan LEAF | $3,750–$7,500 | $29,280 | Sept 30, 2025 |
🛒 See full list of qualifying EVs →
📌 Final Thoughts: Beat the Deadline
The EV federal tax credit is ending for good on September 30, 2025. If you’ve been waiting to make the switch to an electric vehicle, this is your chance to:
✅ Claim up to $7,500 in savings
✅ Lower your total cost of ownership
✅ Drive cleaner and save money at the pump
👉 Don’t wait. Shop now and take delivery before the deadline.
