EV Tax Credit Calculator
Did you qualify for the federal Clean Vehicle Credit on a car acquired on or before September 30, 2025 — and how much state credit stacks on top? Pick your model, enter your income and MSRP, and find out.
Federal EV tax credit ended for vehicles acquired after September 30, 2025.
The One Big Beautiful Bill (signed July 4, 2025) terminated §30D, §25E, and §45W. This calculator is now a historical/tax-filing reference for buyers who had a binding written contract and made a payment on or before Sept 30, 2025. New acquisitions after that date are not eligible — see the IRS Clean Vehicle Tax Credits page for the official notice.
Official source: IRS Clean Vehicle Tax Credits — the authoritative IRS hub for §30D, §25E, and §45W eligibility and the Sept 30, 2025 sunset.
MSRP cap: $55,000 (car)
New income cap: $300,000
Lesser of current or prior tax year.
Estimated credit (vehicles acquired by Sept 30, 2025)
$7,500
Effective price after credit: $37,500
For acquisitions after Sept 30, 2025 the federal credit is $0 — only state rebates apply.
Breakdown
Federal credit (§30D): $7,500
- Critical-minerals component: $3,750 (max $3,750)
- Battery-components component: $3,750 (max $3,750)
What changed on September 30, 2025
The One Big Beautiful Bill (OBBB), signed on July 4, 2025, set a hard sunset for the three federal clean-vehicle credits: §30D (the $7,500 new-EV Clean Vehicle Credit), §25E (the $4,000 used-EV credit), and §45W (the Commercial Clean Vehicle Credit used by leasing companies). All three apply only to vehicles acquired on or before September 30, 2025. Any new acquisition after that date is not eligible.
The IRS treats "acquired" as: a binding written contract signed and a payment made (including a non-refundable deposit or a trade-in) on or before Sept 30, 2025. If both happened by the deadline, you can still place the vehicle in service (take delivery) later and claim the credit on the corresponding year's return.
How the federal EV tax credit worked
The Clean Vehicle Credit comes from Section 30D of the Internal Revenue Code, rewritten by the Inflation Reduction Act of 2022 and refined by IRS Treasury regulations through 2025. It was worth up to $7,500 on a qualifying new battery-electric or plug-in hybrid, split into two halves: a $3,750 critical-minerals credit and a $3,750 battery-components credit. Either, both, or neither half could apply to a given model.
The minerals half required that a minimum percentage of the value of the battery's critical minerals — lithium, nickel, cobalt, manganese, graphite — be extracted or processed in the United States or a country with a US free-trade agreement, or recycled in North America. The battery-components half required a minimum percentage of the value of the battery's components be manufactured or assembled in North America. Both percentages stepped up each calendar year, which is why the eligible-models list moved around every January until the program ended.
Income and MSRP caps (still apply to pre-sunset acquisitions)
To claim the new-EV credit on a vehicle acquired by Sept 30, 2025, your modified adjusted gross income in the year you take delivery (or the year before, whichever is lower) must fall at or below the cap for your filing status: $300,000 married filing jointly, $225,000 head of household, $150,000 single. There is no phase-out — a single dollar over the cap zeroes the credit.
The vehicle MSRP must also fall at or below its class cap: $80,000 for SUVs, trucks, and vans; $55,000 for cars. The IRS uses EPA classification, which produced some surprising rulings — the Cadillac LYRIQ and Tesla Model Y were re-classified as SUVs partway through 2023 specifically to fit under the $80k cap.
Point-of-sale transfer (still used for pre-sunset acquisitions)
From January 2024 through Sept 30, 2025, buyers could transfer the credit to the dealer at the time of sale in exchange for an equivalent reduction in price — getting the $7,500 immediately rather than waiting until they filed. To qualify, the dealer had to be registered with the IRS Energy Credits Online portal, and the buyer had to attest under penalty of perjury that their AGI was below the cap. If the AGI turns out over the cap on the eventual return, the IRS reclaims the credit. Buyers who used the transfer still file Form 8936 to reconcile.
The leasing path (§45W) — closed on Sept 30, 2025
Before the sunset, if you leased instead of bought, the leasing company — not you — claimed the Commercial Clean Vehicle Credit (Section 45W)on the vehicle. That credit was also worth up to $7,500 but had none of §30D's buyer requirements: no income cap, no MSRP cap, no critical-minerals or battery-components tests. The eligible-model list under §45W therefore covered effectively every EV on sale, which is why high earners and shoppers eyeing $90,000 EVs commonly leased to capture it. The dealer was not legally required to pass the credit through to the lessee; reputable dealers applied it as a cap-cost reduction on the lease. The OBBB closed this path for any new lease contract dated after Sept 30, 2025.
The used EV credit ($4,000) — also sunset
Section 25E gave used-EV buyers a credit equal to the lesser of $4,000 or 30% of the sale price. The vehicle had to be at least two model years old, priced at or below $25,000, and sold through a licensed dealer — private-party sales never qualified. The buyer's income caps were tighter than the new-EV credit: $150,000 MFJ, $112,500 HoH, $75,000 single, and the credit was limited to once every three years per buyer. §25E sunset on the same Sept 30, 2025 deadline as §30D and §45W.
Common reasons people who acquired in time still don't end up qualifying
- AGI just over the cap. Check whether your prior-year AGI is under — the IRS lets you use whichever year is lower.
- Vehicle MSRP exceeds the class cap. Even a fully loaded trim past $80k disqualifies an SUV. The cap is the official MSRP, not the negotiated sale price.
- Model not assembled in North America. Most German and Japanese production lines fail this test for §30D.
- Battery sourcing fails. Some 2025 models qualified for only one half ($3,750) because their minerals or components came from a non-qualifying country. Check the per-model breakdown above.
- Dealer didn't file the time-of-sale report. Required for the IRS to recognize the sale; if the dealer never submitted it, the credit cannot be claimed even after the fact.
Frequently asked questions
Is the federal EV tax credit still available in 2026?
No. The One Big Beautiful Bill, signed July 4, 2025, terminated the Clean Vehicle Credit (§30D), the Previously-Owned Clean Vehicle Credit (§25E), and the Commercial Clean Vehicle Credit (§45W) for any vehicle acquired after September 30, 2025. Vehicles acquired on or before that date — via a binding written contract and a payment — remain eligible even if you take delivery later, but no new acquisitions after Sept 30, 2025 can claim any of the three credits.
What does 'acquired by Sept 30, 2025' actually mean?
The IRS treats you as having acquired the vehicle if, on or before Sept 30, 2025, you signed a binding written contract and made a payment (including a non-refundable deposit or a trade-in) toward that specific vehicle. You can still take delivery — 'place the vehicle in service' — after Sept 30, 2025 and claim the credit on your 2025 or 2026 return, as long as the contract and payment predate the deadline.
I qualified before Sept 30, 2025. How do I claim the credit now?
If you had a binding contract and made a payment before the deadline, claim the credit on Form 8936 with your federal return for the year the vehicle was placed in service. If you used the point-of-sale transfer at the dealer, the credit is already applied to the price, but you still file Form 8936 to reconcile your income against the cap. The IRS will reclaim the credit on your return if your AGI exceeded the cap in both the delivery year and the prior year.
Who qualified for the federal EV tax credit before it sunset?
Buyers whose modified AGI was at or below $300,000 (married filing jointly), $225,000 (head of household), or $150,000 (single) — using the lesser of the current or prior year. The vehicle had to be assembled in North America, have an MSRP at or below the cap for its class ($80,000 for SUVs / trucks / vans, $55,000 for cars), and meet the IRS critical-minerals and battery-components requirements. The used-EV credit (§25E) used tighter income caps and a $25,000 sale-price cap.
Are state EV rebates still available?
Many state-level programs are still running independently of the federal sunset. Colorado, New York, Illinois, New Jersey, Massachusetts, Connecticut, and Oregon still offer point-of-sale or post-purchase rebates as of 2026. Use the state dropdown above to check your state's current rule and source link. Programs change frequently — always confirm with your state energy office or DOR before purchase.
What about leasing? Did the §45W lease 'loophole' end too?
Yes — §45W ended on the same Sept 30, 2025 deadline. Before then, leasing companies routinely claimed the $7,500 Commercial Clean Vehicle Credit and passed it through as a cap-cost reduction, which bypassed the income and MSRP caps that applied to a direct purchase. After Sept 30, 2025, that path is closed for new leases.
Related calculators
- EVMath homepage — every EV calculator on the site.
- EV vs Gas Total Cost of Ownership Calculator — run the 5-, 7-, and 10-year break-even after the credit is applied.
- EV Charging Cost Calculator — your true per-mile fuel cost on the EV side of the comparison.
Sources: IRS Clean Vehicle Credit guidance (irs.gov), fueleconomy.gov eligible-vehicles list (historical), the IRS Clean Vehicle Tax Credits hub for the Sept 30, 2025 sunset under the One Big Beautiful Bill, and each state's department of revenue / energy office. Verified 2026.