If you are considering buying Electric cars And you can make up your mind in the next few weeks and it can save you thousands of dollars.
As part of a “large bill” signed as a law on July 4, 2025, the federal electric vehicle tax credit that was previously scheduled to expire in 2032 will now be September 30, 2025. Tax credits for purchasing new electric vehicles can offer up to $7,500, or $4,000 for used electric vehicles.
The move by Congressional Republicans was signed by President Donald Trump to help pay for the tax cuts on Trump’s first term, some say it’s Most helpful to the richest taxpayers. Congress destroyed many other clean energy tax breaks in the bill, essentially repealing most Inflation reduction method Passed under President Joe Biden.
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The expiration of electric vehicle credit has caused a strange end to the automotive industry in 2025, which also faces potential challenges from Trump’s tariff policies. Thanks to international supply chains of parts and materials, tariffs are likely Increase the cost of a car Even if the truck is assembled in the United States.
While buying a vehicle is usually not a decision that should be rushed, the amount involved in the tax credit makes it a good time to act quickly. “The common advice I’ve always had to do with everyone is not to be big, take a moment to make a careful decision,” Sean Tucker, chief editor of Kelley Blue Book, told me. “In this case, you might want to rush.”
one The latest IRS rule decision Make it easier to meet up for the upcoming deadline. Instead of having to Receive delivery of electric vehicles By September 30, in order to claim the EV tax credit, the IRS says you only need it Complete the purchase Before the end of the month.
Watch the following: Optimizing the efficiency of an electric car is easier than you think
What is an electric vehicle tax credit?
Currently, the federal government provides Credit New up to $7,500 Electric cars,,,,, Plug-in hybrid or Fuel cell electric vehicles. If the vehicle meets the requirements for the material of the battery assembly and critical material, the credit is divided into two equal parts, with a credit limit of $3,750 per person. Due to these requirements, only a few Vehicle qualification. You do need to meet some income limits – if you file an application separately, you must not have taxable income of more than $150,000, if you file a marriage and file a joint document, you must not have more than $300,000, and if you apply as head of household, you must not have more than $225,000.
Used electric vehicles are also sold at 30%, up to $4,000. The list of qualified vehicles here is broader, but the used electric vehicle market is also much smaller than the new electric vehicle market. Even though things are changing – more than 100,000 electric vehicles sold in the U.S. in the second quarter KBB data.
To get credit, you can ask for it on your tax return the following year or transfer the credit loan to the dealer so they can apply it to your purchase expenses. The second option becomes more popular because it is easier and reduces your upfront costs.
You can also get credit for renting a vehicle. Dealers are very familiar with applying points to Rented an electric carTucker said.
Should I buy an electric car now before the credit ends?
The most important part of deciding whether to buy a car is to be ready to buy a car. Don’t rush to make a large purchase because the tax credit is about to end. The truth is that when you consider the total cost of ownership, the price of electric vehicles falls and is usually similar Prices of gasoline-powered cars. You should also consider that not every EV is eligible for this credit – one EV you are focusing on may not see any changes in pricing, at least not due to credit expiration.
However, the end of credit does mean dealers may seek to reduce their inventory of electric vehicles by the end of September. That means, Tucker says, if you are on the market and are focusing on one of the qualified vehicles, you might want to move to make a purchase by October.
There may be more strategies. Tucker recommends looking at dealers with a large number of electric vehicles that may offer steeper discounts to lower them before prices rise. The best time to buy may be in mid-September or late September, just before the credit line ends to get the best deal.
“If I told you this is your last chance to save $7,500, that’s a saying you often hear,” Tucker said.
Don’t let this moment drown out other good shopping suggestions, though. Tucker recommends that one of the best ways to get a lot of deals is to buy the vehicle that suits you most of the time, even if it doesn’t necessarily fit every possible situation you can think of. Only when the company is in town do you really need a third row seat? If you mostly just tow yourself to the office, do you need a large pickup truck?
CNET’s automotive experts, Antuan Goodwinit is recommended to reevaluate your car purchase goals to save money. Goodwin said, for example, consider only the features you really need, rather than the top model, but a middle level. You can also consider bass, used cars or rentals as alternatives to buying new products.
“If electric will expand your budget, explore combustion alternatives, e.g. Plug-in or traditional hybrid car “It’s a good compromise,” Goodwin said. It’s mainly because I don’t want to dissuade anyone ‘willing to do electric’ to do this, but for someone on the fence, there are alternatives.”
Electric vehicles, PHEV eligible for federal tax credit
| vehicle | Model Year | Vehicle type | MSRP Limitations | Credit amount |
|---|---|---|---|---|
| Acura ZDX | 2024-2025 | ev | $80,000 | $7,500 |
| Cadillac Lyriq | 2024-2026 | ev | $80,000 | $7,500 |
| Cadillac Optiq | 2025-2026 | ev | $80,000 | $7,500 |
| Cadillac Vistiq | 2026 | ev | $80,000 | $7,500 |
| Chevrolet blazer | 2024-2026 | ev | $80,000 | $7,500 |
| Chevrolet Equinox | 2024-2026 | ev | $80,000 | $7,500 |
| Chevrolet Silverado | 2025-2026 | ev | $80,000 | $7,500 |
| Chrysler Pacifica Phev | 2024-2025 | PHEV | $80,000 | $7,500 |
| Ford F-150 Lightning (Flash, Lariat or Xlt) | 2023-2025 | ev | $80,000 | $7,500 |
| Genesis Electric GV70 | 2026 | ev | $80,000 | $7,500 |
| GMC Sierra EV | 2026 | ev | $80,000 | $7,500 |
| Honda Preface | 2024-2025 | ev | $80,000 | $7,500 |
| Modern IONIQ 5 | 2025 | ev | $80,000 | $7,500 |
| Modern IONIQ 9 | 2026 | ev | $80,000 | $7,500 |
| jeep | 2025 | ev | $80,000 | $7,500 |
| Kia EV6 | 2025 | ev | $80,000 | $7,500 |
| Kia EV9 | 2026 | ev | $80,000 | $7,500 |
| Tesla Cybertruck (dual motor, long distance or single motor) | 2025 | ev | $80,000 | $7,500 |
| Tesla Model 3 | 2025 | ev | $55,000 | $7,500 |
| Tesla Model X AWD | 2025 | ev | $80,000 | $7,500 |
| Tesla Model | 2025-2026 | ev | $80,000 | $7,500 |
For vehicles used on or after January 1, 2025 and before October 1, 2025, source: U.S. Department of Energy
