When Did the EV Tax Credit End? Sept. 30, 2025 Rules

When did the EV tax credit end? The federal new, used and commercial clean vehicle credits ended for vehicles acquired after September 30, 2025.

If you’re shopping for an electric vehicle, you may be wondering whether you can still get a tax credit. Unfortunately, the federal EV tax credits have ended. The 2025 tax law terminated the new, used and commercial clean vehicle credits for vehicles acquired after September 30, 2025. Here is what that means and what you may still be able to claim.

Which EV tax credits ended?

New clean vehicle credit (Section 30D): up to $7,500 for new EVs.
Used clean vehicle credit (Section 25E): up to $4,000 for qualifying used EVs.
Commercial clean vehicle credit (Section 45W): for businesses buying clean vehicles.

All three end for vehicles acquired after September 30, 2025.

Can you still claim an EV tax credit?

You may still qualify if you acquired the vehicle by September 30, 2025. According to the IRS, a vehicle is acquired when you enter a written binding contract and make a payment. So if you did both by that date, you may still claim the credit, even if you took delivery later.

In addition, many buyers transferred the credit to the dealer at the time of sale, which lowered the price. In that case, you still report the vehicle on Form 8936 with your return. For details, see the IRS FAQs on the 2025 law changes.

Other energy credits that changed

EV charger credit (Section 30C): ends for property placed in service after June 30, 2026.
Home energy improvement credit (Section 25C): ended for property placed in service after December 31, 2025.
Residential clean energy credit (Section 25D): ended for expenditures made after December 31, 2025. This credit covered solar panels and similar systems.

What you can still do

Even without a federal credit, you may have options:

Check state and local programs. Some states and utilities offer their own EV or charger rebates.
Business use. If you use a vehicle for business, depreciation and other business deductions may still apply.
Car loan interest. A new deduction for interest on loans for qualifying U.S.-assembled vehicles may apply. It covers loans taken out after 2024, and it applies to gas and electric vehicles alike.

Used EV tax credit 2025: who qualified

The used electric vehicle (EV) tax credit, often searched as the used electric car tax credit (officially the previously-owned clean vehicle credit), was available only for qualified vehicles acquired on or before September 30, 2025. If you bought a used EV in 2025 before that date, these were the main rules from the IRS checklist:

Credit amount: 30% of the sale price, up to $4,000.
Price: a sale price of $25,000 or less.
Income limits (modified AGI, current or prior year): $150,000 if married filing jointly or a surviving spouse, $112,500 for heads of households, $75,000 for other filers.
Model year: at least two years earlier than the calendar year you bought it.
Dealer: bought from a licensed dealer registered with the IRS, and the first qualifying transfer since August 16, 2022.
Weight: under 14,000 pounds.

For comparison, the new clean vehicle credit for eligible vehicles was up to $7,500, and final assembly had to be in North America. Both credits were cut off for vehicles acquired after September 30, 2025 by Public Law 119-21 (the One, Big, Beautiful Bill), enacted July 4, 2025. If you qualify, you claim the credit on Form 8936 with your tax return for the year you took possession of the vehicle. Sources: IRS Used Clean Vehicle Tax Credit Checklist; IRS Tax Tip 2023-49.

EV tax credit FAQs

When did the EV tax credit end?

The new (Section 30D), used (Section 25E) and commercial (Section 45W) clean vehicle credits are not available for vehicles acquired after September 30, 2025. A vehicle counts as acquired when you sign a binding written contract and make a payment on it.

Can I still claim the credit if I took delivery after September 30, 2025?

Possibly. If you signed a binding written contract and made a payment on or before September 30, 2025, the vehicle can still qualify. You claim the credit once the vehicle is placed in service, which is when you take possession of it.

Will the EV tax credit come back?

Under current law, no federal clean vehicle credit is available for vehicles acquired after September 30, 2025. Check IRS.gov for any future changes.

Sources

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Get help with vehicle tax questions

If you bought an EV in 2025 or plan to use a vehicle for business, we can help you figure out what you can claim. Call (415) 842-2940 or book a free 15-minute call.