EV Tax Credit 2026: The One Big, Beautiful Bill Cutoff Deadline

In a shifting economic landscape, 2025 has become the most pivotal year for many tax credits and incentives. With the passage of the One Big, Beautiful Bill (OBBB), the federal government has set a definitive "cliff" for the credits that have fueled the EV transition over the last few years. 

Important deadlines:

• EV Tax Credit Cutoff (30D, 25E, 45W) : September 30, 2025

• EV Charger Credit Cutoff (30C): June 30, 2026

• The tax filing deadline: April 15, 2026

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What is the EV tax credit?

The EV tax credit is a nonrefundable federal tax incentive available to taxpayers who purchase a qualifying electric vehicle (EV) or plug-in hybrid. Eligibility depends on income limits, and the vehicle must meet specific IRS requirements, including price caps, battery standards, and manufacturing guidelines.

Eligible buyers can either claim the credit on their federal tax return or transfer it to a participating dealership at the time of purchase. When transferred, the dealer applies the credit as an immediate point-of-sale discount, reducing your purchase price upfront.

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How much is the 2026 EV tax credit?

All-electric, plug-in hybrid, and fuel cell electric vehicles acquired new from January 1, 2023, through September 30, 2025, may be eligible for a federal income tax credit of up to $7,500. The credit for used EVs is 30% of the sale price, capped at a maximum of $4,000.

The New Clean Vehicle Credit, Previously-Owned Clean Vehicle Credit, and Qualified Commercial Clean Vehicle Credit are not available for vehicles acquired after Sept. 30, 2025. This deadline is determined by the date a written binding contract is signed and a payment is made, not the vehicle’s delivery date, meaning vehicles delivered after September 30, 2025, may still qualify if those requirements were met in time.

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Which new cars qualify for the EV tax credit?

The following fully electric and plug-in hybrid vehicles may qualify for a full or partial EV tax credit in 2026.¹

Car Make	Car Model  (Year)
Acura	ZDX (2024-2025)
Cadillac	LYRIQ (2024-2026), OPTIQ (2025-2026), VISTIQ (2026)
Chevrolet	Blazer EV (2024-2026), Equinox EV (2024-2026), Silverado EV (2025-2026)
Chrysler	Pacifica PHEV (2024-2025)
Ford	F-150 Lightning: FLASH, LARIAT, and XLT (2023–2025)
Genesis	Electrified GV70 (2025)
GMC	Sierra EV (2026)
Honda	Prologue (2024-2025)
Hyundai	IONIQ 5 (2025), IONIQ 9 (2026)
Jeep	Wagoneer S (2025)
Kia	EV6 (2025), EV9 (2026)
Tesla	Cybertruck (2025), Model 3 Long Range/Performance (2025), Model X AWD (2025), Model Y (2025-2026)
Acura	ZDX (2024-2025)

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2025 Federal EV tax credit qualification checklist

As you prepare your tax filing in early 2026, it is critical to verify that you satisfy all the requirements. The following table outlines the specific price, income, and manufacturing requirements you must meet to successfully claim the credit on your return for the tax year 2025.²

Requirement	New Vehicles	Used Vehicles	Commercial Vehicles
Price	SUVs/Trucks: ≤$80k; Sedans: ≤$55k	$25k or less	-
Battery Capacity	7 kWh	7 kWh	7 kWh (<14k lbs) / 15 kWh (≥14k lbs)
Weight	<14k lbs	<14k lbs	-
Income (Joint)	$300,000	$150,000	-
Income (Head of Household)	$225,000	$112,500	-
Income (All Other Filers)	$150,000	$75,000	-
Assembly	North America	North America	-
Other	Must be the original owner	Model must be 2+ years old; 1st transfer only	For business use/lease; not for resale

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How to file for the federal EV tax credit?

Filing for the credit in 2026 requires strict documentation. Even if you received the credit as an immediate discount at the dealership, the IRS requires you to reconcile the benefit on your annual return.

Step 1: Obtain your Documentation

• Residential: You must have your "Time of Sale" report from the dealer (IRS ECO confirmation).

• Commercial: While the "Time of Sale" report is recommended for all, businesses claiming the Section 45W Commercial Vehicle Credit must primarily ensure they have proof of the vehicle's "Basis" (purchase price).

Step 2: Complete the Correct Forms

• Residential: Use Form 8936, Clean Vehicle Credits. You must complete a separate Schedule A for every vehicle, providing the VIN and battery capacity.

• Commercial: If you are a business (other than a Partnership or S-Corp), you must also file Form 3800 (General Business Credit).

Step 3: Reconcile or Calculate the Credit

• Residential: Reconcile any transferred credits. If your income (MAGI) exceeded the limits ($150k single / $300k joint), you may have to repay the credit.

• Commercial: There are no income limits for commercial credits. However, you must calculate the credit based on the lesser of:

  1. 15% of the basis (30% for fully electric).

  2. The "incremental cost" (price difference between the EV and a gas equivalent).

  3. The cap ($7,500 for light vehicles; $40,000 for heavy vehicles).

Step 4: Attach and File

• Residential: Attach all forms to your 2025 Form 1040.

• Commercial: Attach all forms to your 2025 Form 1120/Form 1065.

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Electric vehicle charging credit (30C)

Beyond the vehicle itself, the OBBB also impacts the incentives available for the equipment needed to fuel it. While the vehicle credits expired in late 2025, the Alternative Fuel Vehicle Refueling Property Credit (30C), more commonly known as the EV charger credit, remains active through June 30, 2026. This gives homeowners a few extra months to upgrade their electrical panels and install a Level 2 charger.

How much can you save?

Residential

You can save 30% of the cost of hardware and installation, limited to $1,000 per single item of property.

Requirements:

• The charger has to be installed in your primary residence.

• Under the OBBB, you can only claim the charger credit if your home is located in an eligible census tract. This generally includes:

  • Low-income communities (census tracts with a poverty rate of at least 20%).

  • Non-urban areas (census tracts where at least 10% of the census blocks are outside an urban area).

Commercial

6% to 30% of the cost (depending on labor requirements), capped at $100,000 per unit.

Requirements:

• Equipment must be new.

• The EV charging equipment must be depreciable property and used for business purposes.

• The EV charging installation must be in an eligible low-income community or non-urban census tract.

How to claim it

You must file IRS Form 8911 with your federal tax return for the year the charger was "placed in service" (fully installed and ready for use).

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Specific state tax incentives

While federal credits are tightening, many states offer additional relief. Here are the key state-level incentives currently active: ³

State	State tax Incentives
AZ	Reduced Alternative Fuel Vehicle (AFV) License Tax
CA	Advanced Transportation Tax Exclusion
CO	Electric Vehicle (EV) Charger Tax Exemption Electric Vehicle (EV) and Hydrogen Fuel Cell Electric Vehicle (FCEV) Tax Credit
DC	Electric Vehicle (EV) Title Excise Tax Exemption Alternative Fuel Vehicle (AFV) Conversion and Infrastructure Tax Credit
GA	Electric Vehicle (EV) Charging Station Tax Credit Alternative Fuel and Advanced Vehicle Job Creation Tax Credit
IL	Electric Vehicle (EV) and EV Charger Manufacturing Tax Credits
LA	Provision for Green Jobs Tax Credit
MD	Electric Vehicle (EV) and Fuel Cell Electric Vehicle (FCEV) Tax Credit
MI	Alternative Fuel Development Property Tax Exemption
NC	Alternative Fuel Tax Exemption
NJ	Zero Emissions Vehicle (ZEV) Tax Exemption
NM	Electric Vehicle (EV) Charging Station Make-Ready Building Renovation Tax Credit Alternative Fuel Tax Exemption Alternative Fuel and Advanced Vehicle System Manufacturing Incentive
OK	Alternative Fueling Infrastructure Tax Credit
PA	Alternative Fuel Tax Exemption for Electric Vehicles (EVs)
UT	Qualified Heavy-Duty Alternative Fuel Vehicle (AFV) Tax Credit Propane and Electricity Tax Exemptions
WA	Commercial Alternative Fuel Vehicle (AFV) and Fueling Infrastructure Tax Credit
WI	Alternative Fuel Tax Exemption

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EV incentives FAQs

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