EV Tax Credit.
In plain English
The EV tax credit, officially the Clean Vehicle Credit, was a federal tax break worth up to $7,500 on a qualifying new electric vehicle and up to $4,000 on a qualifying used one. Under the 2025 tax law (the One Big Beautiful Bill), the credit is not available for vehicles acquired after September 30, 2025. To count as acquired by that date, you generally needed a binding written contract and a payment on or before September 30, 2025, even if the car was delivered later. For most buyers in 2026 and beyond, there is no federal EV credit.
01Why it matters
That $7,500 was often the difference that made an EV competitive with a gas car on price, so its end changes the real cost comparison for anyone shopping after the cutoff.
02The math, step by step
Say you signed a binding contract and made a deposit on a qualifying EV in September 2025. You could still claim up to $7,500 even if the car arrived in October. Sign for that same car in 2026 and there is no federal credit.
03What this is NOT
While the credit was active, buyers could transfer it to the dealer for an upfront price cut, but it was still a federal tax credit with income and vehicle rules, not a permanent dealer discount. After the September 30, 2025 cutoff, that federal break is gone regardless of what a dealer advertises.
04Receipts
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