Last reviewed: August 22, 2026 — Information verified against IRS.gov and DOE AFDC
What Ended on September 30, 2025
The One Big Beautiful Bill Act, signed July 4, 2025, ended the Inflation Reduction Act's clean vehicle purchase credits seven years ahead of schedule. Here's exactly what expired.
New EV Tax Credit — Section 30D
$7,500
Expired: September 30, 2025
The primary federal credit for new electric vehicles, plug-in hybrids, and fuel-cell vehicles. Required North American assembly, battery sourcing requirements, and buyer income limits.
Used EV Tax Credit — Section 25E
$4,000
Expired: September 30, 2025
Up to $4,000 (or 30% of sale price) for qualifying used EVs purchased through licensed dealers. Vehicle had to be at least 2 years old and priced under $25,000.
Commercial EV Credit — Section 45W
Up to $40,000
Expired: September 30, 2025
Credits for businesses and tax-exempt organizations purchasing commercial clean vehicles for fleet use. Did not require North American assembly requirements.
New EV sales dropped 28% in Q1 2026
The expiration of federal credits has meaningfully impacted the EV market. But this also means manufacturers are offering stronger lease deals and discounts to stimulate demand — which can offset some of the lost credit value.
Exception: Did You Sign Before September 30, 2025?
There is one scenario where you can still claim the old credit — even in 2026. The IRS allows it if you properly "acquired" the vehicle before the deadline.
You may still qualify if BOTH of these are true:
You entered into a binding written purchase contract AND made a qualifying payment (even a deposit or trade-in) on or before September 30, 2025 — even if you took delivery of the vehicle later.
What you'll need to claim it:
- A signed binding purchase contract dated on or before September 30, 2025
- Documentation of a qualifying payment made on or before that date
- A time-of-sale report filed by the dealer with the IRS (required for eligibility)
- IRS Form 8936, filed with your 2025 tax return (filed in 2026)
Consult a tax professional.
The "signed contract exception" has specific nuances — particularly around what counts as a qualifying payment and whether your dealer filed the required time-of-sale report. If you think you qualify, verify with a CPA or tax attorney before filing.
What's Still Available in 2026
The IRA purchase credits are gone, and the home charger credit has now expired too — but two meaningful federal benefits remain for EV buyers this year.
Active for 2026
OBBBA Auto Loan Interest Deduction
Up to $10,000/yr
Available 2025–2028
Under the One Big Beautiful Bill Act, buyers of new American-made vehicles (including EVs) can deduct the interest on a car loan, capped at $10,000 of interest per year. You do not need to itemize. New vehicles only, U.S. final assembly, and you must report the VIN on your return. It phases out above $100,000 MAGI ($200,000 joint) and is worth nothing above $150,000 ($250,000 joint).
Lease Only
Commercial Lease Pass-Through
Varies
Check with dealers
When you lease (not buy) an EV, the leasing company may still claim a commercial clean vehicle credit and pass savings to you through lower monthly payments. Not all dealers pass this through automatically — always ask when negotiating.
Home charger credit (Section 30C) has expired.
This credit ended June 30, 2026 and is no longer available for new installations. If your charger was installed and placed in service on or before that date, you can still claim it — see the section below.
Home Charger Credit Has Expired
The Section 30C home charger tax credit ended for equipment placed in service after June 30, 2026. That deadline has now passed — the credit is no longer available for new installations.
Section 30C Expired June 30, 2026
The 30% credit (up to $1,000) for home EV charger hardware and installation is no longer available for chargers placed in service after that date. There is currently no announced extension.
Already installed before the deadline?
If your charger was purchased and placed in service at your primary residence in an eligible census tract on or before June 30, 2026, you can still claim 30% of the cost (up to $1,000) using IRS Form 8911 on your 2026 tax return (filed in 2027).
What counted toward the 30% credit?
- The EV charging port hardware itself (Level 2 charger, typically $400–$900)
- Components and parts essential to the charger's operation
- Labor costs for installation by a licensed electrician
- Dedicated circuit wiring if required for the charger
Note: A panel upgrade was generally NOT covered unless it was solely required for the charger. If you installed a charger before June 30, 2026 and haven't claimed the credit yet, consult a tax professional about Form 8911 for your 2026 return.
The OBBBA Loan Deduction: What Changed
The One Big Beautiful Bill Act replaced the one-time $7,500 credit with an annual auto loan interest deduction. It's a different mechanism — and for buyers who finance, it can still add up significantly.
| Feature | IRA Credit (Ended) | OBBBA Deduction (New) |
|---|---|---|
| Benefit type | Tax credit (dollar-for-dollar) | Tax deduction (reduces income) |
| Max benefit | $7,500 (one-time) | Up to $10,000/year (annual) |
| Duration | Single year of purchase | Each year 2025–2028 |
| Assembly requirement | North American assembly | U.S. assembly required |
| Vehicle price cap | $55K cars / $80K SUVs/trucks | No stated price cap |
| Income limits | $150K single / $300K joint | $100K single / $200K joint (fully phased out at $150K / $250K) |
| Requires itemizing? | N/A — a credit, not a deduction | No — claimable alongside the standard deduction |
| Cash buyers | Eligible | Not eligible (loan required) |
How much is the deduction actually worth?
Less than the headline suggests, for two reasons. First, $10,000 is a cap on deductible interest, not on the benefit — and to pay $10,000 of interest in a single year you would need a loan of roughly $140,000. A more typical $45,000 EV loan at 7.2% over six years generates about $3,050 of interest in year one, falling every year after that. Second, the deduction phases out from $100,000 MAGI ($200,000 joint) and disappears entirely at $150,000 ($250,000 joint), so the 32%, 35% and 37% brackets are excluded by definition — the realistic marginal rate is 22% or 24%. On that $45,000 loan, expect roughly $670 of tax saving in the first year and somewhere near $1,900 across 2025–2028, not the $7,500 the old credit paid outright. For most buyers this is a smaller benefit than the credit it replaced, and cash buyers get nothing.
State Incentives: Now Your Primary Savings
With federal purchase credits gone, state programs have become the main source of upfront EV savings. Many states have actually strengthened their programs in response. Here are the strongest programs right now.
California
Up to $7,500
CVRP + Clean Cars 4 All
Strongest Program
Colorado
Up to $9,000
$2,500–$5,000 state + utility
Top Rated
New York
Up to $2,000
Drive Clean Rebate
Active Program
New Jersey
$1,500 - $4,000
Charge Up NJ, no income limit on base
Instant at Dealer
Massachusetts
Up to $3,500
MOR-EV program
Active Program
Oregon
Up to $7,500
Income-qualified rebates
Income-Boosted
Illinois
Up to $4,000
Rebate through June 2026
Ending Soon
→ All 50 States
Find Yours
Complete state-by-state guide
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Don't forget utility rebates.
Many electric utilities offer separate EV purchase rebates ($200–$1,500) and home charger installation rebates that most buyers miss. Check your utility company's website — this often goes unclaimed because people don't know to ask.
Frequently Asked Questions
The most common questions about federal EV incentives in 2026.
Can I still get the $7,500 EV tax credit in 2026?
For most buyers, no. The federal new EV tax credit ended for vehicles acquired after September 30, 2025. The only exception is if you signed a binding purchase contract AND made a qualifying payment on or before that date — even if you took delivery later. If that applies to you, consult a tax professional and claim it via Form 8936 on your 2025 tax return.
What is the OBBBA auto loan deduction and how do I qualify?
The One Big Beautiful Bill Act introduced a deduction for interest paid on qualifying new vehicle loans, capped at $10,000 of interest per year. To qualify, the vehicle must be new, assembled in the United States, under 14,000 lbs GVWR, and the loan must have originated between January 1, 2025 and December 31, 2028. You must report the vehicle's VIN on your return. You don't need to itemize. Crucially, it phases out above $100,000 modified AGI ($200,000 joint) and is worth nothing at $150,000 ($250,000 joint) — so higher earners get less than the headline, or nothing at all. For a typical $45,000 EV loan the first-year saving is roughly $670, not thousands. Cash buyers and used EV buyers do not qualify.
Is the home EV charger tax credit still available?
No — the Section 30C federal tax credit expired June 30, 2026. If your charger was installed by then, you can still claim it using Form 8911 on your 2026 tax return. Installations after June 30, 2026 no longer qualify unless Congress renews the program.
Do EV leases still benefit from federal credits in 2026?
Potentially. When you lease an EV, the leasing company (usually the automaker's finance arm) purchases the vehicle and may be able to claim a commercial clean vehicle credit — without the strict assembly and sourcing requirements that applied to direct buyers. Lessors can pass these savings to you through lower monthly payments. Not all dealers do this automatically, so ask specifically when negotiating your lease terms.
Are state EV incentives still available in 2026?
Yes, and they've become more important than ever. Many states — including California, Colorado, New York, New Jersey, Massachusetts, and Oregon — maintain substantial rebate and tax credit programs that are entirely independent of federal law. Several states have even strengthened their programs since the federal credits ended. The amounts and eligibility vary significantly by state, so check your specific state's current program.
Is buying an EV still worth it in 2026 without the federal credit?
For many buyers, yes. Several factors partially offset the lost credit: EV prices have come down significantly; manufacturers are offering stronger lease deals; the new OBBBA loan deduction provides multi-year savings for financed purchases; state programs remain strong; and total cost of ownership (fuel + maintenance) still favors EVs in most cases. The savings are more scattered than a single $7,500 check — but buyers willing to stack incentives can still achieve similar total savings.
Find Every Dollar You're Eligible For
Federal credits may be gone, but state programs, utility rebates, and the new OBBBA deduction mean savings are still available. Use our tools to find yours.