When did the federal EV tax credit end?

The new-EV, used-EV, and commercial (leasing) credits are not allowed for any vehicle acquired after 30 September 2025. Acquired means you entered a written binding contract and made a payment by that date, so a vehicle acquired on or before 30 September 2025 could still qualify even if delivered later, but anything acquired from 1 October 2025 onward does not. Source: IRS FAQs on the One Big Beautiful Bill Act (https://www.irs.gov/), as of 2026-06-18.

Is leasing an EV still cheaper because of the tax credit?

Not because of the federal credit. The leasing advantage came from the commercial clean-vehicle credit (Section 45W), which the leasing company claimed and passed through in the lease. That credit ended on the same 30 September 2025 date, so the lease discount that came from it is gone. Leasing can still suit some buyers for other reasons, but it no longer carries a federal credit. Source: IRS (https://www.irs.gov/), as of 2026-06-18.

Are there any EV incentives left in the United States?

Yes, at the state and utility level, though they vary widely and change often. As of 2026-06-18, examples include point-of-sale or post-purchase rebates in states such as Illinois, New York, New Jersey, Connecticut, and Massachusetts, and many utilities offer charger rebates or cheaper overnight charging rates. There is no federal purchase credit. Confirm the current amount and eligibility with the specific program. Source: DOE Alternative Fuels Data Center (https://afdc.energy.gov/laws), as of 2026-06-18.

Can I still get a tax credit for installing a home EV charger?

Only for chargers placed in service on or before 30 June 2026. The federal charger credit (Section 30C) covered 30 percent of the cost up to $1,000 for a home install, but the 2025 law moved its end date to 30 June 2026. A charger installed and working by that date may still be claimed on a 2026 return, so keep the receipts and check IRS Form 8911. There is no federal charger credit for installs after that date. Source: Cornell Legal Information Institute 26 U.S.C. 30C and IRS Form 8911 instructions (https://www.irs.gov/instructions/i8911), as of 2026-06-18.

Is There Still an EV Tax Credit in the United States?

If you are shopping for an electric vehicle (battery electric vehicle, or BEV) in the United States, the most important thing to know in 2026 is that the federal EV tax credit is gone. For years the headline number was a credit of up to $7,500 on a new EV, plus up to $4,000 on a used one. Those credits, and the route that let leasing customers benefit too, all ended for vehicles acquired after 30 September 2025 under the law passed in mid-2025. Most articles you will still find online were written while the credit existed and have not caught up, so they quote a federal credit that no longer applies. This guide lays out what actually changed, what it means if you are buying now, the state and utility incentives that still exist, and what to stop counting on. Because tax and incentive rules change quickly, every figure below is dated and sourced, and you should confirm the current rules with the IRS and your state program before you rely on them.

By mht-dev, Frontend Engineer & Creator

A frontend engineer who bought a first electric car in March 2026 and built EV Charge Calculator while working out the real cost of charging it, writing every guide from an everyday new EV owner's perspective.

The federal EV tax credit has ended

The federal incentives for buying an electric vehicle were a set of tax credits in the Internal Revenue Code: the Clean Vehicle Credit (Section 30D) of up to $7,500 on a qualifying new EV, the Previously-Owned Clean Vehicle Credit (Section 25E) of up to $4,000 on a qualifying used EV, and the Commercial Clean Vehicle Credit (Section 45W) used by businesses and, in practice, by leasing companies. All three were repealed early by the One Big Beautiful Bill Act, Public Law 119-21, which was signed on 4 July 2025. Under that law, none of these credits is allowed for a vehicle acquired after 30 September 2025. Source: IRS, FAQs on the One Big Beautiful Bill Act vehicle-credit changes (https://www.irs.gov/), as of 2026-06-18.

The cutoff turns on when the vehicle was acquired, not just when you took delivery. The IRS defines acquired as the date you entered into a written binding contract and made a payment, which can include a nominal down payment or a trade-in. So a vehicle acquired on or before 30 September 2025 could still claim the credit even if it was delivered a little later, but anything acquired from 1 October 2025 onward gets nothing federally. For a purchase made today, there is no federal new-EV, used-EV, or leasing credit to claim. Source: IRS, FAQs on the One Big Beautiful Bill Act vehicle-credit changes (https://www.irs.gov/), as of 2026-06-18.

What this means if you are buying an EV now

The practical effect is simple: when you compare an EV against a gas car in 2026, leave the old $7,500 out of the math. Dealers can no longer apply it at the point of sale, and you cannot claim it on your tax return for a vehicle acquired after 30 September 2025. The MSRP caps, income limits, and battery-sourcing rules that used to decide whether a specific model qualified no longer matter for a federal credit, because there is no federal credit to qualify for. Source: IRS, FAQs on the One Big Beautiful Bill Act vehicle-credit changes (https://www.irs.gov/), as of 2026-06-18.

The leasing route closed at the same time. For a while, leasing was a popular way to capture EV savings even on models that did not meet the purchase-credit rules, because the leasing company could claim the commercial credit (Section 45W) and pass the benefit through in the lease. That commercial credit ended on the same 30 September 2025 date, so the lease discount that came from it is gone as well. A lease can still make sense for other reasons, but not because of a federal credit. Source: IRS, FAQs on the One Big Beautiful Bill Act vehicle-credit changes (https://www.irs.gov/), and Kiplinger coverage of the lease-credit change (https://www.kiplinger.com/), as of 2026-06-18.

The home charger credit was the last federal piece to go

There was one more federal credit attached to going electric: the Alternative Fuel Vehicle Refueling Property Credit (Section 30C), which covered 30 percent of the cost of installing a home or business EV charger, capped at $1,000 for a residential install. The same 2025 law accelerated its end. It applies only to charging equipment placed in service on or before 30 June 2026, after which it too lapses. Source: Cornell Legal Information Institute, 26 U.S. Code Section 30C (https://www.law.cornell.edu/uscode/text/26/30C), and IRS Form 8911 instructions (https://www.irs.gov/instructions/i8911), as of 2026-06-18.

Note that this credit used a placed-in-service deadline rather than an acquired date, so a charger that was installed and operational on or before 30 June 2026 could still qualify on a 2026 tax return even though the program has since ended. If you installed a home charger in that window, keep the receipts and check the current IRS Form 8911 guidance. For any install after that date, there is no federal charger credit. Source: IRS Form 8911 instructions (https://www.irs.gov/instructions/i8911), as of 2026-06-18.

State and utility incentives that still exist

Even without a federal credit, many EV buyers can still save through state and utility programs, which are now the main source of help and which the federal change did not touch. These vary widely by state and change often, so treat the examples here as a starting point and confirm the live amount and eligibility with the specific program. As of 2026-06-18, point-of-sale or post-purchase rebates in the order of a couple of thousand dollars exist in states such as Illinois (an EV rebate of around $2,000, with more for lower-income buyers), New York (the Drive Clean Rebate of up to about $2,000 applied at the dealer), and New Jersey (Charge Up New Jersey, up to about $4,000 on an eligible new EV under a price cap). Source: DOE Alternative Fuels Data Center state laws and incentives (https://afdc.energy.gov/laws) and 2026 state-incentive roundups from Kelley Blue Book (https://www.kbb.com/) and NerdWallet (https://www.nerdwallet.com/), as of 2026-06-18. Confirm each amount at the issuing agency before you rely on it.

Some states target lower and middle incomes with larger amounts: Connecticut's CHEAPR program offers up to roughly $4,250 for income-qualified buyers, and Massachusetts MOR-EV offers up to about $3,500 with an income top-up. Colorado still has a state EV tax credit, though it has shrunk to a smaller base amount with an extra add-on for cheaper EVs. Many electric utilities also offer their own help: rebates toward a home charger, rebates on a used EV, and, most usefully for running cost, special time-of-use rates that make overnight charging much cheaper. Check your own utility's EV page. Source: DOE Alternative Fuels Data Center (https://afdc.energy.gov/laws) plus the relevant state and utility pages, as of 2026-06-18. These programs are funding-limited and change frequently, so verify before you buy.

What is gone that you might still see advertised

Because so much EV content predates the 2025 change, it helps to know what to ignore. The federal $7,500 new-EV credit, the $4,000 used-EV credit, and the lease-via-commercial-credit discount are the big ones: all ended on 30 September 2025. A few high-profile state perks have also lapsed. California's Clean Vehicle Rebate Project (CVRP) has been closed since November 2023 and is not coming back, so a state purchase rebate is no longer the headline incentive there. California's Clean Air Vehicle decal, which let an EV use carpool lanes with a single occupant, expired on 30 September 2025 along with the federal authorization behind it. And New Jersey, which used to exempt EVs from sales tax entirely, has fully phased that out, so an EV bought there now pays the normal state sales tax. Sources: IRS (https://www.irs.gov/), California Air Resources Board (https://ww2.arb.ca.gov/), and New Jersey Division of Taxation (https://www.nj.gov/treasury/taxation/), as of 2026-06-18.

Incentives are only half the savings

A purchase incentive lowers the price once. The other half of the EV value story is the running cost, which shows up every time you charge and which the loss of the tax credit does not change. Charging at home on your residential electricity rate is far cheaper per mile than buying gasoline, and cheaper still on an off-peak overnight rate, so over the years you keep the car the charging savings can add up to more than a one-time rebate would have. To see what charging your specific car would actually cost on your own electricity rate, put your numbers into the calculator at /us. For the cost of charging at home versus a public DC fast charger, see the companion guide on home versus public charging cost in the United States. The clearest way to weigh an EV now is to ignore the old federal credit, add any state or utility incentive you can actually confirm, and then compare the ongoing charging savings against gasoline over your real ownership period.

Sources and further reading

IRS, FAQs for the modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W and 179D under the One Big Beautiful Bill Act (Public Law 119-21, signed 4 July 2025), the primary source for the 30 September 2025 end of the new-EV (30D), used-EV (25E), and commercial/leasing (45W) credits and the definition of when a vehicle is acquired (as of 2026-06-18): https://www.irs.gov/.

Cornell Legal Information Institute, 26 U.S. Code Section 30C, and the IRS Form 8911 instructions, for the home and business EV-charger credit (30 percent, up to $1,000 residential) and its 30 June 2026 placed-in-service cutoff (as of 2026-06-18): https://www.law.cornell.edu/uscode/text/26/30C and https://www.irs.gov/instructions/i8911.

DOE Alternative Fuels Data Center state laws and incentives (https://afdc.energy.gov/laws) for the searchable, by-state list of current EV programs, cross-checked against 2026 roundups from Kelley Blue Book (https://www.kbb.com/) and NerdWallet (https://www.nerdwallet.com/). State and utility amounts change frequently and were not all confirmed at the issuing agency, so verify the current amount and eligibility with the specific program before you rely on it. This guide is general information, not tax, legal, or financial advice.

Frequently asked questions

Is there still a $7,500 federal EV tax credit in the United States?: No. The federal Clean Vehicle Credit of up to $7,500 on a new EV (Section 30D), the up-to-$4,000 used-EV credit (Section 25E), and the commercial credit used for leasing (Section 45W) all ended for vehicles acquired after 30 September 2025, under the One Big Beautiful Bill Act signed in July 2025. There is no federal purchase credit for an EV bought in 2026. Source: IRS (https://www.irs.gov/), as of 2026-06-18.
When did the federal EV tax credit end?: The new-EV, used-EV, and commercial (leasing) credits are not allowed for any vehicle acquired after 30 September 2025. Acquired means you entered a written binding contract and made a payment by that date, so a vehicle acquired on or before 30 September 2025 could still qualify even if delivered later, but anything acquired from 1 October 2025 onward does not. Source: IRS FAQs on the One Big Beautiful Bill Act (https://www.irs.gov/), as of 2026-06-18.
Is leasing an EV still cheaper because of the tax credit?: Not because of the federal credit. The leasing advantage came from the commercial clean-vehicle credit (Section 45W), which the leasing company claimed and passed through in the lease. That credit ended on the same 30 September 2025 date, so the lease discount that came from it is gone. Leasing can still suit some buyers for other reasons, but it no longer carries a federal credit. Source: IRS (https://www.irs.gov/), as of 2026-06-18.
Are there any EV incentives left in the United States?: Yes, at the state and utility level, though they vary widely and change often. As of 2026-06-18, examples include point-of-sale or post-purchase rebates in states such as Illinois, New York, New Jersey, Connecticut, and Massachusetts, and many utilities offer charger rebates or cheaper overnight charging rates. There is no federal purchase credit. Confirm the current amount and eligibility with the specific program. Source: DOE Alternative Fuels Data Center (https://afdc.energy.gov/laws), as of 2026-06-18.
Can I still get a tax credit for installing a home EV charger?: Only for chargers placed in service on or before 30 June 2026. The federal charger credit (Section 30C) covered 30 percent of the cost up to $1,000 for a home install, but the 2025 law moved its end date to 30 June 2026. A charger installed and working by that date may still be claimed on a 2026 return, so keep the receipts and check IRS Form 8911. There is no federal charger credit for installs after that date. Source: Cornell Legal Information Institute 26 U.S.C. 30C and IRS Form 8911 instructions (https://www.irs.gov/instructions/i8911), as of 2026-06-18.

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