How Long Will $7,500 EV Tax Credit Last?
July 17 2025 - mstewart@saffordauto.com
Are EV Tax Credits Going Away?
Unfortunately, the news is true, and it appears that the $7,500 electric vehicles tax incentive is coming to an end very soon. A few days ago, President Donald Trump signed the "One Big Beautiful Bill Act" (OBBBA) into law on July 4, 2025. The main purpose of the bill was to start the elimination of the federal electric vehicle tax credit, which will now officially expire on September 30, 2025. After September 30th, 2025, there will be no more tax credits on any new or used electric vehicle, no matter where it was made.
Federal EV tax credits in 2025 go up to $7,500 if you're buying a new car and $4,000 if you're buying a used car. A bank or the automaker's finance company can also take a $7,500 tax credit for EV leases, but may discount your lease as well. The credit for used plug-in cars can cover 30% of a vehicle’s purchase price, up to $4,000.
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EV Tax Credit
What Are The Income Restrictions For EV Tax Credit?
It is important to note that there are some income limitations if you plan on claiming the EV tax credit. You will have to meet certain income limits listed below using either the previous year's or the current year's adjusted gross income.
- $225 for the head of household
- $300,000 for married couples filing jointly
- $150,000 for all others
Here are the income limits for the used EV credit:
- $112,500 for the head of household
- $150,000 for married couples filing jointly
- $75,000 for all others