⚡ Federal EV Tax Credit Expiration – September 30, 2025
The federal EV tax credit, which previously offered up to $7,500 for new EVs and up to $4,000 for used EVs, is set to expire on September 30, 2025. Vehicles delivered after this date will no longer be eligible.
📘 Common Questions
- When exactly does the credit expire?
The credit ends for vehicles delivered after September 30, 2025. - Does this affect existing EV orders?
Yes. The EV must be delivered and placed in service before the deadline. An order or deposit alone is not enough. - What are the current eligibility requirements?
Vehicle Requirements:
• New EVs: Assembled in North America; must meet battery component/mineral rules.
• MSRP limit: $80,000 for vans, SUVs, and pickups; $55,000 for other vehicles.• Used EVs: Must be at least 2 years old, under $25,000, and bought from a licensed dealer.
Income Limits:
• New EVs: Under $300k (joint), $225k (head of household), $150k (single)
• Used EVs: Under $150k (joint), $112.5k (head of household), $75k (single) - Which EVs are currently eligible?
Models from brands like Acura, Cadillac, Chevrolet, Ford, Hyundai, Kia, and Tesla may qualify. Examples include:
• Acura ZDX
• Cadillac Lyriq
• Ford F-150 Lightning (select trims)
• Tesla Cybertruck (single and dual motor)
Note: Eligibility can change. Always check with your dealer or visit fueleconomy.gov for updates. - Can you get an instant discount?
Yes! Since Jan 1, 2024, you can transfer the tax credit to a dealership and receive it as an immediate point-of-sale discount. The dealer must be IRS-registered. - What about EV leases?
Leasing companies (like the automaker’s finance arm) can claim the $7,500 credit on your behalf. This may result in cheaper lease deals, regardless of your income or the car’s origin, depending on the automaker’s policy. - What happens after the credit expires?
After Sept 30, 2025, no federal credit will apply. Manufacturers may offer their own rebates or special financing, and state/local EV incentives may still be available.