The One Big Beautiful Bill Act significantly changed the federal EV credit landscape. Consumer credits for new and used electric vehicles are gone for purchases made after September 30, 2025. What remains is a narrower window that closes midway through 2026.
What OBBBA Did to the Federal EV Credits
The OBBBA, signed July 4, 2025, ended three EV-related credits that had been available under the Inflation Reduction Act:
- Section 30D (New Clean Vehicle Credit): Up to $7,500 for qualifying new EVs and fuel-cell vehicles. Terminated for vehicles acquired after September 30, 2025.
- Section 25E (Used Clean Vehicle Credit): 30% of the sale price, capped at $4,000, for qualifying previously owned EVs bought from a licensed dealer. Terminated for vehicles acquired after September 30, 2025.
- Section 45W (Commercial Clean Vehicle Credit): A business credit for commercial EVs and certain leased vehicles. Also terminated after September 30, 2025.
All three credits share the same cutoff. If your vehicle was delivered and title transferred on or before September 30, 2025, the credit remains available on your 2025 return. Delivery after that date eliminates the credit regardless of when you signed the purchase agreement.
Does a Pre-Deadline Purchase Agreement Preserve the Credit?
No. Signing a purchase agreement or placing a deposit before September 30, 2025 does not lock in the credit. The IRS confirmed in FAQs that the controlling date is when the vehicle was acquired: title transferred and the vehicle was delivered. The contract date is irrelevant.
If you signed before the deadline but took delivery in October 2025 or later, no credit is available.
What Still Exists: Section 30C Charger Credit
The alternative fuel vehicle refueling property credit (Section 30C) has not been terminated and covers EV chargers installed at homes and businesses:
- Residential: 30% of cost, up to $1,000 per location
- Commercial: 6% of cost, up to $100,000 per location
- Deadline: Equipment must be placed in service by June 30, 2026
June 30, 2026 is a firm deadline. Equipment needs to be installed and operational by that date, not just ordered or shipped. If you are considering adding a home or business charger, there is still time to act, but the window is shrinking.
What About State EV Incentives?
OBBBA only affects federal credits. State-level EV rebate programs operate under their own authority and continue independent of the federal changes. Several states including California, Colorado, New York, and others have active purchase incentive programs with their own eligibility rules and income limits.
Texas does not currently offer a state-level EV purchase credit, though utility company rebate programs may be available depending on your provider.
Claiming EV Credits for Pre-September 30 Purchases
If your vehicle was delivered on or before September 30, 2025, you claim the applicable credit on your 2025 federal return using Form 8936. Key rules:
- The credit is non-refundable: it reduces tax liability dollar for dollar but does not generate a refund beyond your tax owed
- New vehicle credit income limits: MAGI under $150,000 (single), $225,000 (head of household), or $300,000 (MFJ)
- Used vehicle credit income limits: MAGI under $75,000 (single) or $150,000 (MFJ)
- Personal credits apply to purchased vehicles only, not leased; leases fell under Section 45W, which is also terminated
Bottom Line
The federal EV purchase credit window has closed for new buyers. The Section 30C charger credit is the last active federal EV-related benefit, and it expires June 30, 2026. If you claimed an EV credit on your 2025 return, need help confirming your eligibility based on delivery date, or want to act before the charger credit deadline, contact TS CPA.