Attention taxpayers, if you purchased an electric vehicle (EV) before the September 30, 2025, deadline, you may be eligible to claim the Federal Clean Vehicle Tax Credit. This credit offers a dollar-for-dollar reduction of the taxes you owe. However, the legislation known as the One Big Beautiful Bill Act (OBBBA) has ended this incentive.
The Critical September 30, 2025, Deadline
For qualifying vehicles, the credit is only applicable if purchased before September 30, 2025. To meet this EV credit deadline, you must have signed a contract and made a down payment or trade-in by this date.
For new vehicles purchased during this window (through September 30, 2025), you may claim up to $7,500. For used electric vehicles, the credit is up to the lesser of $4,000 or 30% of the purchase price. Used vehicles must also have a sale price of $25,000 or less and be purchased from a dealer.
Key Eligibility Requirements for 2025
To claim the credit using IRS Form 8936, you must meet strict requirements, which include income limitations, specific vehicle component sourcing, and North American final assembly.
- Income Limits: Eligibility is based on your modified adjusted gross income (AGI) from the year of purchase or the preceding year, whichever is lower.
- New EVs: Can't exceed $300,000 for married couples filing jointly, $225,000 for heads of households, or $150,000 for all other filers.
- Used EVs: Can't exceed $150,000 Married Filing Jointly, $112,500 for heads of households, or $75,000 for all other filers.
- Vehicle Assembly and Components: The vehicle must receive final assembly in North America. Vehicles purchased on or after April 18, 2023, must also meet critical mineral and battery component requirements.
Remember that this is a nonrefundable credit. While you can reduce your taxes owed dollar-for-dollar, you can't receive more than your total tax liability. Taxpayers purchasing an EV in 2025 may also have the option to transfer the credit to the dealer to be applied as a discount at the point of sale.
Continued Tax Savings
While the primary EV purchase credit is ending, the EV charging equipment credit remains available for purchases made up to June 30, 2026, and equals 30% of the cost of the qualifying property up to a maximum credit of $1,000 per item.
Ready to learn how to enter your EV into TurboTax? Watch our brief tutorial, “How to enter the Clean Vehicle Credit” now.
Additional Resources
Need more help? Our TurboTax Community is here for you! Post your question in one of our dedicated tax forums.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
