If you’ve been sitting on the fence about buying a Tesla, a Rivian, or even a used Chevy Bolt, you might want to stop scrolling and start looking at your calendar. For the last few years, the $7,500 federal tax credit was something we all just assumed would be there, a sort of permanent fixture of the "green transition."
But things changed fast.
Basically, the massive incentives that made electric cars semi-affordable for the average person are on a ticking clock. If you're asking when does the ev tax credit expire, the short, blunt answer is September 30, 2025.
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Wait—wasn't it supposed to last until 2032? Yeah, that was the original plan under the Inflation Reduction Act. However, new legislation passed in mid-2025 (the "One Big Beautiful Bill Act") effectively chopped seven years off that timeline. We aren't just talking about a minor tweak; we're talking about the total sunset of the New Clean Vehicle Credit (Section 30D), the Used Clean Vehicle Credit (Section 25E), and even the commercial ones.
The September 30 Deadline: It’s Closer Than It Looks
Honestly, most people think they have until the end of 2025. They don't.
The IRS has been pretty clear: for a vehicle to qualify, it has to be "placed in service" by September 30, 2025. In plain English, that usually means you need to have the keys in your hand and the car in your driveway.
But there is a bit of a "loophole" or a safety net if you’re worried about delivery delays. If you enter into a written binding contract and make a nonrefundable payment (like a down payment or a trade-in) on or before September 30, you can still claim the credit even if the car shows up in October or November.
Without that contract? You’re out of luck. On October 1, 2025, that $7,500 essentially vanishes into thin air.
Why the sudden rush?
The political landscape shifted, and the "One Big Beautiful Bill Act" (OBBBA) prioritized cutting federal spending over long-term EV subsidies. This means the 2026 tax season (when you file for 2025) will be the last time most individuals can see these big numbers on their returns.
What About Used EVs? (Section 25E)
If you aren't looking to drop $50k on a new car, the used EV credit was a godsend. It offered up to $4,000 (or 30% of the sale price) for used EVs under $25,000.
Guess what? That’s expiring on the exact same day: September 30, 2025.
There’s a specific nuance here that catches people off guard. For a used EV to qualify, it has to be at least two model years old. Also, you have to buy it from a dealer. If you buy a used Leaf from your neighbor Dave, you get $0 from the government.
Income and Price Caps: The "Still-Relevant" Rules
Even though the finish line is in sight, you still have to clear the hurdles to get there. The government didn't just give these credits to anyone; they kept the "wealth" caps in place until the very end.
- New EVs: You can't make more than $150,000 (single) or $300,000 (married filing jointly).
- Used EVs: The limit is even tighter—$75,000 for singles and $150,000 for joint filers.
And then there's the MSRP limit. If you're eyeing a luxury electric SUV that costs $81,000, you're paying full price. The cap for SUVs, vans, and pickups is $80,000. For "smaller" cars like sedans? It’s $55,000.
The 2026 Outlook: What’s Left After the Credit Dies?
So, let's say it's January 2026. You missed the boat. Is there anything left?
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Kinda.
While the direct "cash-at-the-dealer" tax credit is gone, the OBBBA introduced a different kind of incentive. From 2025 through 2028, you can actually deduct up to $10,000 in interest paid on a loan for a qualifying new personal-use vehicle.
It’s not a $7,500 check, but if you're financing a car at 7% interest, it helps take the sting out of the monthly payment. However, this interest deduction has its own income limits (starting to phase out at $100,000 AGI for singles).
Also, the EV Charger Tax Credit (Section 30C) actually lives a little longer than the vehicle credit. You have until June 30, 2026, to install a home charger and claim up to $1,000 (or 30% of the cost). If you're going to buy an EV before the September deadline, make sure you get the charger installed soon after to double up on the savings.
The Manufacturing "Trap"
You might find a car that fits your budget and your lifestyle, but if the battery minerals came from a "Foreign Entity of Concern" (basically code for China), the credit could be halved or eliminated entirely.
This has been a moving target. In 2024, 50% of the minerals had to be sourced from the US or trade partners. By 2025, that jumped to 60%. Because these rules got stricter every year, some cars that qualified in 2023 no longer qualify today.
Always, always check the VIN on the IRS or Department of Energy website before you sign anything. Dealers will sometimes tell you "Oh yeah, it qualifies," but they aren't the ones who have to answer to the IRS if the battery was made in the wrong place.
Actionable Next Steps: Your "Before It Expires" Checklist
If you are serious about getting that credit, you can't afford to be lazy. Here is exactly what you need to do right now:
- Verify the Model: Go to fueleconomy.gov and confirm the specific trim and year of the car you want actually qualifies for the full $7,500. Some trims of the same model qualify while others don't because of the MSRP cap.
- Check Your AGI: Look at your last tax return. If you're right on the edge of the $150k/$300k limit, talk to a CPA. You might be able to use your "prior year" income to qualify if your current year income is too high.
- The "Binding Contract" Move: If the car you want is backordered, ask the dealer for a Written Binding Contract. This must include a non-refundable deposit. This is your "get out of jail free" card if the car isn't delivered by September 30.
- Transfer the Credit: Don't wait until April to get your money. Since January 2024, you can "transfer" the credit to the dealer. This basically means they take $7,500 off the price of the car right then and there. It's much better for your cash flow.
- Don't Forget the Charger: Plan your home charger installation before June 30, 2026, to grab that extra $1,000 credit before it also hits the scrap heap.
The window is closing fast. By this time next year, the "golden age" of federal EV subsidies will be a memory, replaced by smaller interest deductions and state-level perks. If you're going electric, the clock is ticking.