What ended
Public Law 119-21 of July 4, 2025, commonly called the One, Big, Beautiful Bill, set new end dates. The IRS listed them in fact sheet FS-2025-05 on August 21, 2025:
| Credit | Amount | Not allowed for |
|---|---|---|
| New clean vehicle (30D) | Up to $7,500 | Vehicles acquired after Sep 30, 2025 |
| Previously owned clean vehicle (25E) | 30% of price, up to $4,000 | Vehicles acquired after Sep 30, 2025 |
| Commercial clean vehicle (45W) | Business vehicles | Vehicles acquired after Sep 30, 2025 |
| Refueling property (30C) | 30%, up to $1,000 per item at home | Property placed in service after Jun 30, 2026 |
A car bought in 2026 with no earlier contract gets no federal credit. Fueleconomy.gov adds a warning worth keeping in mind: IRS resources may not reflect the new credit ending date, so older pages and forms can still describe the credit as if it ran longer.
What "acquired" means
The cutoff is about acquisition, not delivery. FS-2025-05 says a vehicle is treated as acquired as of the date a written binding contract is entered into and a payment has been made. Fueleconomy.gov says the payment can be a nominal down payment or a vehicle trade-in. Both parts had to be in place by September 30, 2025.
Acquiring the car is not enough to claim the credit on its own: the IRS says the vehicle must also be placed in service, and you claim the credit for that year, even if that is after September 30, 2025. Three example buyers:
| Buyer | Contract | Payment | Delivered | Acquired in time? |
|---|---|---|---|---|
| A | Sep 20, 2025 | Sep 20, 2025 | Nov 2025 | Yes |
| B | Sep 28, 2025 | Oct 3, 2025 | Oct 2025 | No |
| C | Oct 2, 2025 | Oct 2, 2025 | Oct 2025 | No |
Buyer A signed and paid in September and took the car in November: the credit is claimed for the year the car was placed in service. Buyer B signed in time but paid only in October, so the car was not acquired by the cutoff. Buyer C did both in October. Only A qualifies.
If you still qualify for the new vehicle credit
The usual conditions still apply to a car acquired in time. The credit is up to $7,500. The manufacturer's suggested retail price must not exceed $80,000 for vans, SUVs and pickup trucks or $55,000 for other vehicles, and your modified adjusted gross income must stay under the limit for your filing status. The dealer should give you a paper copy of the time-of-sale report when you take possession; keep it, because it shows the dealer reported the sale to the IRS. You claim with Form 8936 and need the vehicle identification number. If you did not transfer the credit to the dealer, it is nonrefundable, so it can only reduce tax you owe.
The used EV credit, worked out
For a used EV acquired by September 30, 2025, the credit is 30% of the sale price up to $4,000. The car must come from a licensed dealer for $25,000 or less, where the price includes dealer-imposed costs but not taxes and government fees. Above $25,000 there is no partial credit:
| Sale price | 30% | Credit |
|---|---|---|
| $9,000 | $2,700 | $2,700 |
| $12,000 | $3,600 | $3,600 |
| $13,334 | $4,000 | $4,000 |
| $20,000 | $6,000 | $4,000 |
| $25,000 | $7,500 | $4,000 |
| $25,500 | $7,650 | $0 |
The 30% reaches $4,000 at a price of about $13,333, so every eligible car between that price and $25,000 gets the full $4,000. You file Form 8936 for the year you take delivery.
Paperwork if you claim on your 2025 return
- The contract and proof of payment dated on or before September 30, 2025. They show the car was acquired in time.
- The time-of-sale report the dealer should hand you on delivery. For used EVs, the IRS says the dealer must report the required information to you and the IRS when you take possession.
- The vehicle identification number, which Form 8936 asks for.
- Form 8936 with the return for the year you took delivery. The IRS says this applies whether you transferred the credit to the dealer or claim it yourself.
- Your modified adjusted gross income for the year, checked against the limits below.
Income limits
Both credits test modified adjusted gross income:
| Filing status | New vehicle | Used vehicle |
|---|---|---|
| Married filing jointly or surviving spouse | $300,000 | $150,000 |
| Head of household | $225,000 | $112,500 |
| All other filers | $150,000 | $75,000 |
What is left: the home charger credit
The refueling property credit (section 30C) runs until June 30, 2026. For personal use the charger must be installed at your main home, and the home must be in an eligible low-income community or non-urban census tract; the IRS publishes the eligible tracts by GEOID. The credit is 30% of the cost up to $1,000 per item, and you claim it on Form 8911.
| Charger cost | 30% | Credit |
|---|---|---|
| $800 | $240 | $240 |
| $1,800 | $540 | $540 |
| $4,000 | $1,200 | $1,000 |
Property placed in service after June 30, 2026 does not qualify, so the installation date is what matters.
Deciding without the credit
The difference is large on a mid-priced car. On an example price of $35,000, the full new vehicle credit of $7,500 was 21.4% of the price. A buyer who planned with the credit and now buys without it has to find that $7,500 somewhere else, in a lower price, a cheaper loan or lower running costs.
With no purchase credit, an EV has to win on price and running costs. The EV charging cost calculator turns your electricity rate and the car's efficiency into a cost per charge and per mile, and the guide to EV vs gas car cost per mile sets that against gasoline. The home energy credits ended at the same time; see home energy tax credits after 2025.
This page states only what the IRS and fueleconomy.gov pages listed below say; tax rules change, so check them before you file.
Frequently asked questions
Is there an EV tax credit in 2026?
Not for buying a car. The IRS says the new clean vehicle credit, the previously owned clean vehicle credit and the commercial clean vehicle credit are not available for vehicles acquired after September 30, 2025. A vehicle acquired by that date can still qualify when it is placed in service later.
What does acquired mean for the EV credit?
The IRS fact sheet FS-2025-05 says a vehicle is treated as acquired as of the date a written binding contract is entered into and a payment has been made. Fueleconomy.gov notes that the payment can be a nominal down payment or a vehicle trade-in. Both had to happen on or before September 30, 2025.
I signed in September 2025 but got the car later. Can I still claim?
Yes, if you had a written binding contract and made a payment on or before September 30, 2025. The IRS says you can claim the credit when the vehicle is placed in service, even after that date, and fueleconomy.gov says the credit can be claimed upon possession of the vehicle. You file Form 8936 with the return for that year.
How much was the used EV credit?
For vehicles acquired by September 30, 2025, the previously owned clean vehicle credit is 30% of the sale price up to $4,000, for a vehicle bought from a dealer for $25,000 or less. Income limits are $150,000 for joint filers, $112,500 for heads of household and $75,000 for others.
Is there still a credit for a home charger?
Until June 30, 2026. The IRS refueling property credit for individuals is 30% of the cost up to $1,000 per item, for property installed at your main home in an eligible low-income or non-urban census tract. Property placed in service after June 30, 2026 does not qualify. It is claimed on Form 8911.
Sources
- IRS, FS-2025-05 (August 21, 2025), FAQs for modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W and 179D under Public Law 119-21 (vehicles acquired after September 30, 2025 not allowed; acquired means binding written contract plus payment; claim when placed in service; 30C ends June 30, 2026)
- IRS, Credits for new clean vehicles purchased in 2023 or after (up to $7,500; MSRP caps $80,000 and $55,000; income limits $300,000, $225,000, $150,000; Form 8936; time-of-sale report)
- IRS, Used clean vehicle credit (30% of the sale price up to $4,000; $25,000 price cap; dealer sale; income limits $150,000, $112,500, $75,000; Form 8936 for the year of delivery)
- IRS, Alternative fuel vehicle refueling property credit (30% up to $1,000 per item for individuals; main home in an eligible census tract; through June 30, 2026; Form 8911)
- U.S. DOE and EPA, fueleconomy.gov, Federal tax credits for plug-in electric and fuel cell vehicles (acquired January 1, 2023 through September 30, 2025; claim upon possession; nominal down payment or trade-in; used vehicles up to $4,000)