The credit ended in late 2025
Legislation enacted in July 2025 terminated both the new clean vehicle credit and the used clean vehicle credit for vehicles acquired after September 30, 2025. There is no credit for purchases after that date. The rules below still matter for anyone who bought a qualifying vehicle before the cutoff and is claiming the credit on a 2025 return, amending a prior year, or reconciling a credit that was transferred to the dealer at purchase.
New vehicle credit (up to $7,500)
The credit breaks into two $3,750 components: critical minerals sourcing and battery components assembled in North America. Many vehicles qualify for one half but not both. Final assembly in North America and MSRP caps also had to be met, which is why two trims of the same model sometimes qualified differently.
Income limits
Single filers with AGI over $150,000 don't qualify. MFJ over $300,000. HoH over $225,000. Either current-year or prior-year AGI below the cap works.
Used vehicle credit (up to $4,000)
30% of the sale price up to $4,000, for vehicles 2+ years old sold for $25,000 or less by a licensed dealer. Income limits are $75,000 single / $150,000 MFJ.
The paperwork that makes or breaks the claim
The dealer was required to submit a time-of-sale report through the IRS system and give you a copy; without that report in the IRS database, the claim bounces. The credit itself goes on Form 8936 with the vehicle's VIN. If you transferred the credit to the dealer as a price reduction, it still gets reported and reconciled on your return for the year of purchase.
Common questions
- Can I transfer the credit to the dealer?
- That option existed for purchases through September 30, 2025: the dealer applied the credit as a price reduction at sale, regardless of your tax liability. It ended with the credit itself.
- Can I still claim a credit for an EV I bought before the deadline?
- Yes. A qualifying vehicle acquired before the cutoff is claimed on the return for the year you placed it in service, and a missed claim within the amendment window can be recovered on a 1040-X.
- What if I transferred the credit but my income ended up over the limit?
- You repay the transferred amount on your return for that year. The dealer keeps the discount they gave you; the reconciliation is between you and the IRS.
- Does Florida offer its own EV credit?
- No state income tax means no state EV credit. Any remaining incentives here come from utilities, not the tax return.
Related
Personal Income Tax Preparation
Federal and state 1040 preparation with year-round planning. We handle W-2, 1099, K-1, rental, and crypto income for individuals in Florida and all 50 states.
Tax Planning
Year-round tax planning for individuals and business owners. We project the year's income quarterly and model decisions before they become tax liabilities.
Home Energy Efficiency Tax Credits
The 25C credit returns 30% of insulation, window, door, and heat pump upgrades, plus $150 for a home energy audit. Annual caps apply, claimable every year.
Related tax topics
Child Tax Credit
Up to $2,000 per qualifying child under 17, with $1,700 refundable through the Additional Child Tax Credit. Phase-outs begin at $200K single / $400K MFJ.
Earned Income Tax Credit
The EITC is a refundable credit for low- and moderate-income workers. 2025 maximums range from $649 with no kids to $8,046 with three or more. Who qualifies.
Child & Dependent Care Credit
The Child and Dependent Care Credit covers up to 35% of qualifying care expenses for children under 13 or disabled dependents. How it stacks with an FSA.
The Saver's Credit
The Saver's Credit returns up to $1,000 ($2,000 MFJ) for IRA or 401(k) contributions, stacking with the deduction. Income limits and credit tiers explained.