EV Tax Credits in 2026: What Expired, the Deadline, and What's Still Available

Last updated: June 2026

The headline first, because it's the question everyone asks: the federal EV tax credit is no longer available for 2026 purchases. The $7,500 credit for new electric vehicles (Section 30D) and the $4,000 credit for used EVs (Section 25E) both expired on September 30, 2025.

If you're shopping for an EV in 2026, you cannot claim a federal purchase credit. This guide explains exactly what changed, the one narrow exception, how to claim the credit if you bought before the deadline, and which incentives are still on the table this year.

What Changed and Why

The Inflation Reduction Act (IRA) of 2022 originally authorized the clean vehicle credits through 2032. That long runway is what most buyers remember — and it's why the expiration caught so many people off guard.

In July 2025, the One Big Beautiful Bill Act (Public Law 119-21) accelerated the termination of multiple IRA clean energy credits. For electric vehicles, the cutoff was set at September 30, 2025. After that date, no federal purchase credit is available for new or used EVs, regardless of the vehicle, your income, or where it was assembled.

This was part of a broader rollback. The same law ended:

• Section 30D — new EV credit ($7,500): expired Sep 30, 2025
• Section 25E — used EV credit ($4,000): expired Sep 30, 2025
• Section 25D — residential solar tax credit (30%): expired Dec 31, 2025
• Section 25C — home energy efficiency / heat pump credit: expired Dec 31, 2025

The One Exception: Vehicles "Acquired" Before the Deadline

There is a narrow timing rule worth understanding. The credit attaches to when you acquired the vehicle — defined as having a written binding contract and made a payment (even a nominal deposit) — not necessarily when it was delivered.

This means a buyer who signed a binding purchase agreement and put money down on or before September 30, 2025 could still take delivery later and claim the credit on their 2025 return, provided they obtained a "time of sale" report from the dealer documenting the qualifying sale date. The IRS confirmed this could extend eligibility into early 2026 for orders already in the pipeline.

If You Bought Before the Deadline: How to Claim

If you acquired a qualifying EV on or before September 30, 2025 (or under the acquisition exception above) and have not yet claimed the credit, you claim it on your 2025 tax return (filed in early 2026):

1. Gather your documentation — the vehicle purchase invoice (date, VIN, price), and the dealer's IRS "time of sale" report confirming eligibility.
2. File IRS Form 8936 (Clean Vehicle Credits) with your 2025 return.
3. Carry forward unused credit if needed. The credit is nonrefundable. If it exceeds your 2025 tax liability, the unused portion generally cannot be carried to future years for the personal-use 30D credit — so verify your liability with a tax professional.

If you elected point-of-sale transfer at the dealer in 2025, you already received the benefit as an upfront discount and the dealer claimed it on your behalf. You still report the transfer on Form 8936, but you don't receive an additional credit.

The eligibility rules that applied to those qualifying 2025 purchases were: MAGI under $150,000 (single) / $225,000 (head of household) / $300,000 (married filing jointly) for the new-EV credit; an MSRP cap of $55,000 for sedans and $80,000 for SUVs/trucks/vans; and final assembly in North America. The used-EV credit had lower income caps ($75k/$112.5k/$150k) and a $25,000 price cap.

What's Still Available in 2026

The federal purchase credit is gone, but it was never the only money on the table. These programs remain active in 2026:

State and Local EV Rebates

Many states run their own EV incentives that are independent of the federal credit and still funded in 2026. Programs and amounts change frequently and are often income- or price-capped, but examples include rebates and tax credits in California, Colorado, New York, New Jersey, Oregon, Massachusetts, and Vermont, among others.

Federal EV Charger Credit (30C) — But Hurry

The Alternative Fuel Vehicle Refueling Property Credit (Section 30C) — worth 30% of the cost of a home EV charger and installation, up to $1,000 for residential installations — is still available, but it too was given an end date by Public Law 119-21: June 30, 2026.

Utility Rebates and Time-of-Use Rates

Many electric utilities offer their own EV charger rebates and discounted time-of-use (TOU) overnight charging rates. These aren't tax credits, but they can be worth several hundred dollars upfront plus ongoing savings, and they're unaffected by the federal changes.

Does an EV Still Make Financial Sense Without the Credit?

Often, yes — the case now rests on operating cost, not the upfront subsidy. Two factors have actually strengthened that case in 2026:

• Gas prices are elevated. The national average sits around $3.93/gallon in mid-2026 (AAA), well above last year, which widens the per-mile gap in the EV's favor.
• Home charging stays cheap. At the ~18¢/kWh national average, home charging runs roughly 5 cents per mile, versus about 13 cents per mile for a 30-MPG gas car at today's prices.

Over 15,000 miles a year, that's roughly $1,200/year in fuel savings, plus lower maintenance. The loss of the $7,500 credit lengthens the payback period, but for higher-mileage drivers the lifetime math frequently still favors electric — especially when a state rebate is available.

Run your own numbers with the EV vs Gas Cost Calculator using your actual mileage, local electricity rate, and current gas price.

The Bottom Line

• The federal $7,500 new and $4,000 used EV tax credits expired September 30, 2025. There is no federal EV purchase credit for 2026 buyers.
• Only buyers with a binding contract and payment before October 1, 2025 can still claim it — on their 2025 return via Form 8936.
• State rebates, utility programs, and the 30C home-charger credit (through June 30, 2026) are the remaining incentives — check them before you buy.
• Without the credit, the EV value case is about fuel and maintenance savings, which today's higher gas prices make stronger than they were a year ago.

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Important disclaimer: Tax law changes frequently. This guide reflects federal rules as of June 2026 following Public Law 119-21. For the most current eligibility requirements, visit IRS.gov/credits or consult a tax professional. This is educational information, not tax advice.

Data sources: Public Law 119-21 (One Big Beautiful Bill Act); IRS.gov Clean Vehicle Credit guidance and Form 8936/8911 instructions; U.S. Department of Energy Alternative Fuels Data Center; AAA national fuel price average (June 2026).