The federal EV tax credit ended September 30, 2025. What replaced it?

Updated October 12, 2026 · Figures checked against the official sources listed below

What ended, and when

Three federal clean vehicle credits are no longer available for vehicles acquired after September 30, 2025:

So any calculator or article that still subtracts $7,500 from a new EV bought today is out of date.

The one exception: "acquired" before the deadline

The IRS looks at when you acquired the vehicle, not when you took delivery. If you signed a binding written contract and made a payment on or before September 30, 2025, you can still claim the credit even if you took possession later. A vehicle is "placed in service" when you take possession of it.

What may help instead: the car loan interest deduction

For tax years 2025 through 2028, you can deduct up to $10,000 a year of interest on a loan for a qualifying new vehicle. It is not EV-specific: gas, hybrid and electric vehicles all count if they meet the rules.

• New vehicles only. The vehicle's original use must start with you, so used vehicles don't qualify.
• Final assembly in the United States. You can check the vehicle information label, or the plant of manufacture in the VIN using NHTSA's VIN decoder.
• Personal use, for cars, minivans, vans, SUVs, pickups and motorcycles under 14,000 pounds gross vehicle weight rating.
• Loan taken out after December 31, 2024 and secured by a lien on the vehicle. A later refinance of a qualifying loan generally still counts.
• Leases don't qualify. Only interest on a purchase loan counts.
• Income limit. The deduction is reduced once modified adjusted gross income is above $100,000 ($200,000 for joint filers).
• No need to itemize. It is claimed on the new Schedule 1-A (Part IV), and you must include the vehicle's VIN on your return each year.

Keep in mind a deduction is not a credit: it lowers your taxable income, not your tax bill dollar for dollar. What it is worth depends on your tax bracket.

State programs

With the federal credit gone, state programs matter more. They change often, so check your state's official program page before you buy.

Example: California's MyFirstEV. This point-of-sale incentive for first-time zero-emission vehicle buyers launched on August 3, 2026. It is run by the California Air Resources Board (CARB) with participating automakers. Per CARB's official FAQ:

• $3,500 off a new zero-emission vehicle with an MSRP of $50,000 or less, bought or leased
• $1,750 off a used zero-emission vehicle priced at $25,000 or less, at least two model years old, sold as a manufacturer certified pre-owned vehicle through a franchised dealer (private dealerships can't take part)
• Battery-electric and fuel-cell vehicles only. Plug-in hybrids don't qualify. CARB's FAQ also says vehicles must be model year 2026 or newer; it doesn't explain how that fits with the used-car rule above, so ask the dealer which used models qualify.
• For California residents who have never been on the registration or title of an electric vehicle, including in another state. One incentive per person for the life of the program.
• No income limit. The car can't be registered or delivered to an address outside California.
• Taken off the price at the dealership. There is no rebate to claim after the sale, and purchases made before the automaker started offering it don't qualify.
• The price caps don't apply to California-headquartered zero-emission automakers.
• Funded with a one-time $135.5 million state appropriation, matched by automakers, and offered only while funding lasts.

Not every automaker, dealer or model takes part, and each manufacturer decides whether to offer it on used cars. Check CARB's list of participating manufacturers and ask the dealer before you count on it.

Don't forget the fees EVs do pay

Some states charge electric vehicles extra registration fees because they don't pay gas tax. In California, for example, zero-emission vehicles from model year 2020 onward pay a $121 Road Improvement Fee on renewal. Our state calculators list EV fees line by line, and mark any we haven't confirmed from an official source as "not available".

Frequently asked questions

General information, not tax or legal advice. Fees and tax rules change; confirm with the agency listed before you pay.