EV Tax Credit Eligibility Guide
Federal EV tax credit status, how to claim 2025 credits, state incentives, and home charger credit eligibility
Key Numbers
Federal Credit
Expired 9/30/25
Charger Credit
Until 6/30/26
Best State
CO (up to $9,000)
States w/ Credits
13+
Federal EV credit expired September 30, 2025. The One Big Beautiful Bill Act (signed July 4, 2025) ended the new EV credit ($7,500), used EV credit ($4,000), and commercial EV credit earlier than expected. No federal vehicle credit is available for purchases after that date.
While federal vehicle credits are no longer available for new purchases, buyers who acquired a qualifying EV on or before September 30, 2025 can still claim the credit on their 2025 return. State incentives, utility rebates, and the federal charger credit (through June 30, 2026) remain active.
Current EV Incentive Status
| Incentive | Status | Details |
|---|---|---|
| New EV Credit (30D) | Expired | Ended Sept. 30, 2025 — up to $7,500 |
| Used EV Credit (25E) | Expired | Ended Sept. 30, 2025 — up to $4,000 |
| Commercial EV Credit (45W) | Expired | Ended Sept. 30, 2025 — up to $40,000 |
| EV Charger Credit (30C) | Expiring Soon | 30% up to $1,000 — through June 30, 2026 |
| State Incentives | Active | 13+ states offer rebates or tax credits |
| Utility Rebates | Active | Many utilities offer $500–$5,500 |
Stacking incentives: Most state rebates, utility incentives, and the federal charger credit can be combined. Check each program's rules — some reduce the eligible amount when stacked with other benefits.
Claiming the 2025 Credit
If you purchased or entered a binding contract for an EV on or before September 30, 2025, you can still claim the federal credit on your 2025 tax return (filed in 2026). Delivery can occur after the deadline — the acquisition date is what matters.
New EV Credit Requirements (Up to $7,500)
| Requirement | Details |
|---|---|
| Acquisition Date | On or before Sept. 30, 2025 (binding contract + payment) |
| MSRP Cap — SUV/Van/Pickup | $80,000 or less |
| MSRP Cap — Sedan/Other | $55,000 or less |
| Final Assembly | North America |
| Battery Components | Must meet critical minerals + battery component sourcing thresholds |
| MAGI — Single | $150,000 or less |
| MAGI — Head of Household | $225,000 or less |
| MAGI — Married Filing Jointly | $300,000 or less |
| IRS Form | Form 8936 (include VIN) |
Used EV Credit Requirements (Up to $4,000)
| Requirement | Details |
|---|---|
| Credit Amount | 30% of sale price, max $4,000 |
| Sale Price | $25,000 or less |
| Model Year | At least 2 years older than current year |
| Purchased From | Licensed dealer (private sales ineligible) |
| MAGI — Single | $75,000 or less |
| MAGI — Head of Household | $112,500 or less |
| MAGI — MFJ | $150,000 or less |
Point-of-sale transfers: If you transferred the credit to your dealer for an instant discount, you must still report the transaction on your 2025 return using Form 8936. The credit won't affect your tax bill, but reporting is required.
State & Local Incentives
With federal credits gone, state and local programs are the primary source of EV purchase savings. Programs change frequently and some run out of funding mid-year — always verify current status with the state agency or the DOE's Alternative Fuels Data Center before purchasing.
| State | New EV | Used EV | Program / Notes |
|---|---|---|---|
| Colorado | Up to $9,000* | Up to $4,000* | Vehicle Exchange CO (VXC); income-qualified, requires trade-in |
| California | Up to $12,000 | Up to $12,000 | Clean Cars 4 All; income-qualified, by air district |
| Illinois | $4,000 | $4,000 | IEPA rebate; through June 30, 2026 |
| Connecticut | Up to $4,250 | Up to $5,250 | CHEAPR; standard + income-based Rebate Plus |
| New Jersey | Up to $4,000 | — | Charge Up New Jersey |
| Massachusetts | Up to $3,500 | Up to $3,500 | MOR-EV program |
| Vermont | Up to $5,000 | Up to $3,000 | Replace Your Ride; income-based |
| Pennsylvania | $3,000 | $3,000 | $45K max price; income-qualified |
| New Mexico | $3,000 | $2,500 | Clean Car Tax Credit; through 2026 |
| Rhode Island | Up to $3,000 | Up to $1,500 | DRIVE EV rebate |
| New York | Up to $2,000 | — | Drive Clean Rebate; varies by range/price |
| Maine | $2,000 | $2,000 | Efficiency Maine rebate |
*Colorado base state tax credit is $750 in 2026 (plus $2,500 for MSRP under $35K). The $9,000 figure is the separate VXC trade-in program for income-qualified residents. Amounts and eligibility change frequently — verify with state agencies.
Utility Rebate Examples
| Utility | Amount | Notes |
|---|---|---|
| Xcel Energy (CO) | Up to $5,500 | New EV; $3,000 for pre-owned; income-qualified |
| Black Hills Energy (CO) | Up to $5,500 | New or used EV purchase |
| PG&E (CA) | Up to $4,000 | Pre-owned EV; income-qualified |
| NV Energy (NV) | $2,500 | Low-income customers |
Almost every utility offers some form of EV incentive — rebates, time-of-use rates, or charger discounts. Check your utility's website or call before buying.
Federal EV Charger Credit (30C)
The Alternative Fuel Vehicle Refueling Property Credit (IRC §30C) is the last remaining federal EV incentive. It covers home EV charger installations placed in service by June 30, 2026.
| Detail | Residential |
|---|---|
| Credit Amount | 30% of cost, up to $1,000 per item |
| Deadline | Placed in service by June 30, 2026 |
| Eligible Costs | Equipment, installation labor, electrical upgrades (if required) |
| Location | Primary residence in eligible census tract (non-urban or low-income) |
| Eligible Equipment | Level 2 chargers (240V); energy storage for EV charging |
| Not Eligible | Level 1 chargers (120V), most urban areas, rental properties (generally) |
| IRS Form | Form 8911 (Alternative Fuel Vehicle Refueling Property Credit) |
Location matters: The charger credit is limited to installations in non-urban areas or low-income census tracts. Verify your address qualifies using the IRS location tool or a tax professional before purchasing.
How to Claim
1. Verify location eligibility — confirm your property is in an eligible census tract before purchasing equipment.
2. Install before June 30, 2026 — equipment must be placed in service (installed and operational) by the deadline.
3. Save all receipts — keep documentation for equipment, installation labor, permits, and any electrical panel work.
4. File Form 8911 — complete the form with your tax return for the year the charger was placed in service.
Many states and utilities also offer charger-specific rebates ($200–$1,500) that can be stacked with the federal credit. Check your utility's EV program page.
Sources
- 1.IRS — Clean Vehicle Tax Credits
- 2.IRS — Credits for New Clean Vehicles Purchased in 2023 or After
- 3.IRS — Used Clean Vehicle Credit
- 4.U.S. Department of Energy — New and Used Clean Vehicle Tax Credits
- 5.Alternative Fuels Data Center — State Laws and Incentives
- 6.Colorado Energy Office — Electric Vehicle Tax Credits
- 7.FuelEconomy.gov — Federal Tax Credits for Plug-in Electric and Fuel Cell Vehicles
This content is for educational and informational purposes only and does not constitute financial, tax, or legal advice. Consult a qualified professional for guidance tailored to your situation.