Not anymore at the federal level. The federal previously-owned clean vehicle credit, up to $4,000 or 30% of the sale price, ended for any vehicle acquired after September 30, 2025, under the One Big Beautiful Bill Act.
The one exception worth knowing about
If you entered into a binding written contract and made a qualifying payment on or before September 30, 2025, you may still be able to claim the credit, even if the vehicle was placed in service after that date. This is claimed on your federal tax return for the year of acquisition using IRS Form 8936, with the dealer’s time-of-sale report as documentation. If you’re just starting to shop for a used EV now, this exception doesn’t apply, there’s currently no federal purchase credit available.
Where savings still exist
A used EV can still qualify for savings elsewhere, even without the federal credit:
- Several states and utilities run their own used-EV rebate programs, independent of federal rules
- Income-qualified buyers often have access to larger local incentives than general shoppers
- Some utility companies offer sign-up credits or reduced electricity rates for any EV owner, new or used
Why the used credit’s loss matters for some buyers more than others
While it was active, the used EV credit generally had a lower sale-price cap and lower income limits than the new-vehicle credit, which made it more accessible to budget-conscious buyers specifically. Its expiration affects that segment of shoppers more directly than buyers who were already looking at higher-priced new EVs and relying on the loan interest deduction instead.
Why the used-EV inspection matters more now
With the financial cushion of a federal credit gone, getting the purchase price and vehicle condition right matters even more than it used to. Checking battery health specifically is one of the more important steps for a used EV, distinct from a typical used gas car inspection. Our Used EV Battery Health guide covers what to check before buying.
💡 Tip: Official IRS guidance: IRS Clean Vehicle Tax Credits. Use our Tax Credits & Incentives tool to see live state and local incentive data for your area.