Is the EV tax credit gone?
General information, not a substitute for the advice of an attorney.
Short answer: Yes for purchases after September 30, 2025. The IRS states that the new clean vehicle credit under section 30D "will not be allowed for any vehicle acquired after September 30, 2025," and the same date applies to the used vehicle credit under section 25E (IRS FS-2025-05). The home and business charger credit under section 30C lasts a little longer.
The dates
- Section 30D, new clean vehicle credit: no credit for any vehicle acquired after September 30, 2025 (IRS FAQ 1).
- Section 25E, previously owned clean vehicle credit: no credit "with respect to any vehicle acquired after September 30, 2025" (IRS FAQ 1).
- Section 30C, alternative fuel vehicle refueling property credit (EV chargers): no credit for property placed in service after June 30, 2026 (IRS FAQ 1).
These dates come from Public Law 119-21, enacted July 4, 2025; Treasury and the IRS published the explanatory FAQs as Fact Sheet 2025-05 on August 21, 2025 (IRS news release IR-2025-86).
What "acquired" means
The cutoff turns on acquisition, not delivery. The IRS says a vehicle is acquired as of the date "a written binding contract is entered into and a payment has been made," and a nominal down payment or a trade-in counts as a payment (IRS FAQ 2). A buyer who met both conditions by September 30, 2025 can still claim the credit "even if the vehicle is placed in service after September 30, 2025"; the credit is claimed for the year the vehicle is placed in service, meaning when the taxpayer takes possession (IRS FAQ 3).
What is still available
For a home charger, the 30C credit is tied to the placed-in-service date, so equipment installed and working by June 30, 2026 is inside the window (IRS). The fact sheet does not change the 30C eligibility rules themselves, so the location and income conditions that applied before still apply. State and utility incentives are separate and are not covered by this IRS guidance.
What this does to the cost of driving electric
The credit changed the purchase price, not the running cost. Home charging is billed at your residential electricity rate, which averaged 17.30 cents per kWh nationally in 2025 and ranged from about 8.20 cents in North Dakota to 35.72 cents in Hawaii (EIA, prices and factors). EIA also notes some utilities offer time-of-day pricing, which rewards overnight charging (EIA).
Related
See rooftop solar and net metering by state, the permit finder, and outage history by county and ZIP.
Related questions
General information from the sources linked above, not legal, tax, or financial advice.
Sources and helpful links
- IRS FS-2025-05 irs.gov
- IRS news release IR-2025-86 irs.gov
- EIA, prices and factors eia.gov
More official contacts and resources: Helpful links.