🔍 Quick Eligibility Check
Find out instantly if you qualify for the federal EV tax credit
💰 Federal EV Tax Credit Overview
- Up to $7,500 tax credit for eligible new electric vehicles
- Credit amount depends on battery assembly and critical mineral requirements
- Income limits apply based on filing status
- Vehicle price caps: $55,000 for cars, $80,000 for SUVs/trucks
- Program ends September 30, 2025
Credit Amount Structure
| Battery Requirement | Credit Amount | Details |
|---|---|---|
| Final Assembly + Battery Assembly | $3,750 | Battery assembled in North America |
| Final Assembly + Critical Minerals | $3,750 | 50%+ critical minerals from US/FTA countries |
| Both Requirements Met | $7,500 | Maximum possible credit |
📊 Income Limits for 2025
To qualify for the federal EV tax credit, your modified adjusted gross income (MAGI) must be below these thresholds:
| Filing Status | Income Limit | Example |
|---|---|---|
| Single | $150,000 | Individual taxpayer |
| Head of Household | $225,000 | Single parent with dependents |
| Married Filing Jointly | $300,000 | Married couple, combined income |
| Married Filing Separately | $150,000 | Each spouse files separately |
🚗 Eligible Vehicles (Updated July 2025)
These vehicles currently qualify for federal tax credits. Credit amounts may be $3,750 or $7,500 depending on battery and mineral requirements:
Sedans & Hatchbacks (Under $55,000 MSRP)
SUVs, Trucks & Vans (Under $80,000 MSRP)
💳 Point-of-Sale Credit (Transfer Option)
You can now transfer your tax credit to the dealer and receive the discount immediately at purchase:
- Immediate savings: Get the credit applied to your purchase price
- Lower financing: Reduce the amount you need to finance
- Cash flow friendly: Don't wait until tax season
- Guaranteed value: Get the full credit amount even if your tax liability is lower
How Point-of-Sale Works
- Verify eligibility: Dealer confirms you meet income and vehicle requirements
- Complete forms: Fill out IRS forms at the dealership
- Transfer credit: Assign your credit to the dealer
- Immediate discount: Credit is applied to your purchase price
- Dealer handles paperwork: Dealer claims the credit from the IRS
📋 How to Claim the Credit
Option 1: Traditional Tax Credit (File with Return)
- Purchase eligible vehicle before September 30, 2025
- Keep all documentation: Purchase agreement, VIN, dealer certificate
- File Form 8936 with your 2025 tax return
- Claim credit against your tax liability
Option 2: Point-of-Sale Transfer (Immediate Discount)
- Verify dealer participation in transfer program
- Complete eligibility verification at dealership
- Sign transfer documents (Form 8936-A)
- Receive immediate discount on purchase price
- Driver's license or state ID
- Social Security number
- 2024 tax return (for income verification)
- Purchase or lease agreement
- Vehicle VIN and specifications
❓ Frequently Asked Questions
Can I get the credit for a leased vehicle?
Yes! When you lease an eligible EV, the leasing company can claim the credit and often passes the savings to you through lower monthly payments. This is a great option if you don't qualify for the credit due to income limits.
What if my tax liability is less than $7,500?
The credit is non-refundable, so you can only claim up to your tax liability. However, with the point-of-sale option, you can get the full credit value immediately regardless of your tax liability.
Can I stack federal and state incentives?
Yes! The federal credit can be combined with state, local, and utility incentives. Some buyers save over $15,000 total when combining all available programs.
What happens if I buy a vehicle on September 30th?
As long as you take delivery by September 30, 2025, you're eligible. However, we recommend purchasing earlier to avoid any last-minute complications.
Are used EVs eligible?
Used EVs qualify for a separate $4,000 federal credit with different rules. Learn more about the used EV credit.
What if the program gets extended?
While possible, there's no guarantee of extension. Congress would need to pass new legislation. Don't wait – act before the September 30 deadline.
🎯 Maximize Your Savings: Federal + State Incentives
Combine the federal credit with state incentives to maximize your savings:
⏰ Don't Miss Out – Time is Running Out!
The federal EV tax credit expires in just 64 days. Take action now to secure your $7,500 savings.
Questions? Our EV experts are here to help! Contact us for personalized guidance.
⚖️ Important Disclaimers
This information is for educational purposes only and should not be considered professional tax advice. Tax laws are complex and subject to change. Always consult with a qualified tax professional or the IRS for specific guidance on your situation.
While we strive to provide accurate and up-to-date information, EV incentive programs change frequently. Always verify eligibility requirements and credit amounts with official sources before making a purchase decision.
Official Sources: