Act Now: $7,500 EV Tax Credit Is Ending Soon
The $7,500 federal EV tax credit will end on September 30, 2025. But there is good news. New IRS rules give buyers extra flexibility. You can still qualify if you act before the deadline, even if your car is delivered later.
How You Can Still Qualify
Here’s how the updated guidance works:
- Sign a binding purchase agreement before September 30.
- Make a payment, even a small deposit or trade-in.
- The IRS counts the contract date and payment, not delivery, as the key factors.
This means buyers with long wait times can still lock in the credit. (Car and Driver)
What Buyers Need to Do
To make sure you qualify:
- Confirm your dealer is IRS-registered.
- Ask for a Time-of-Sale report.
- Keep this report for your records when filing taxes.
These steps protect your eligibility and simplify your tax filing.
Why This Deadline Matters
The credit is a big deal for both buyers and automakers:
- Buyers save thousands upfront.
- Automakers like Ford and Tesla are racing to boost sales before the deadline.
- Dealers expect a rush in Q3, followed by a slowdown in Q4. (Reuters)
If you wait, you risk losing the incentive and paying more later.
Deadlines You Should Know
| Credit Type | Ends On | Action Needed |
|---|---|---|
| New EV Credit ($7,500) | Sept 30, 2025 | Sign contract & pay before deadline |
| Used EV Credit ($4,000) | Sept 30, 2025 | Same as above, different rules apply |
| Lease Credit Loophole | Sept 30, 2025 | Available until the same deadline |
What To Do Next
- Pick an EV that meets IRS rules.
- Sign your contract and pay something before Sept 30.
- Get the Time-of-Sale report from your dealer.
- Decide if you want the credit applied at the sale or when you file taxes.
For context on the bigger EV picture, see our post: EVs Are Now 73% Cleaner Than Gas Cars — Here’s the Proof.
Bottom Line
If you want the $7,500 EV tax credit, you need to act now. The new IRS rules give you a clear path, but only if you move before the deadline. Sign, pay, and secure your report. After September, the savings are gone.