Financial Incentives

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The federal EV purchase tax credit of up to $7,500 for new vehicles and $4,000 for used vehicles ended on September 30, 2025 under the One Big Beautiful Bill Act (OBBBA) signed July 4, 2025. The federal home charger credit (Section 30C) has also since ended, as of June 30, 2026.

The federal clean vehicle tax credit of up to $7,500 for new electric and plug-in hybrid vehicles is no longer available for vehicles acquired after September 30, 2025.

Official IRS guidance: IRS Clean Vehicle Tax Credits  ·  IRS OBBBA FAQs

The federal previously owned clean vehicle credit of up to $4,000 (30% of the sale price) for qualifying used EVs also ended for vehicles acquired after September 30, 2025.

Official IRS guidance: IRS Clean Vehicle Tax Credits

Section 30C covered 30% of the cost of purchasing and installing a home EV charger, up to a maximum of $1,000 for personal-use property, but the credit is no longer available for chargers placed in service after June 30, 2026.

If your charger was installed and placed in service on or before that date, you may still be able to claim it for that tax year. Requirements were:

  • The charger had to be placed in service (fully installed and ready to use) by June 30, 2026
  • It had to be installed at an eligible location, in a qualifying census tract as defined by the IRS. Check the link below for details.
  • Claimed using IRS Form 8911

Business installations may have qualified for up to 30% of total costs with higher caps, subject to labor and construction requirements for the full credit amount.

IRS Alternative Fuel Vehicle Refueling Property Credit  ·  IRS Form 8911 Instructions

The One Big Beautiful Bill Act introduced a new tax benefit to replace the purchase credit: an above-the-line deduction of up to $10,000 per year on loan interest for qualifying American-assembled vehicles, available through 2028.

Unlike a tax credit (which directly reduces your tax bill dollar for dollar), this is a deduction that reduces your taxable income, so the actual savings depend on your tax bracket. For example, someone in the 22% bracket deducting $10,000 in interest would save approximately $2,200 on their tax bill.

Key requirements:

  • Vehicle must be American-assembled
  • Applies to loan interest, not the purchase price
  • Available annually through 2028
  • Not applicable to leases, only financed purchases

This benefit is newer and IRS guidance is still developing. Consult a qualified tax professional to confirm eligibility for your specific situation.

Official IRS guidance: IRS OBBBA FAQs

Select your state to view current electric vehicle incentive programs, rebates, tax credits, and funding opportunities — including both federal and state-level programs. Data is pulled live from the U.S. Alternative Fuels Data Center.