The $7,500 EV tax credit and the $4,000 used EV tax credit are set to be defunct on September 30, 2025

If you're thinking about buying an electric vehicle, your window to take advantage of a generous federal tax credit — up to $7,500 — is closing fast.

The Clean Vehicle Credit, which was revamped and extended through 2032 by the Inflation Reduction Act, is now slated to end after September 30 under former President Donald Trump’s proposed tax-and-spending plan. That gives potential buyers only a few months left to lock in the benefit before it disappears.

The credit can significantly reduce the cost of a new or used EV. For those already considering a purchase, “now is the time to buy,” says Stephanie Valdez Streaty, director of industry insights at Cox Automotive.

With the deadline looming, Valdez Streaty notes that dealerships may begin ramping up urgency, offering even stronger incentives to move vehicles. Already, automakers were offering incentives averaging 14.2% of the average transaction price for new EVs in May — the highest since 2018, according to Cox’s data — largely due to high inventory levels.

What to Know About the Clean Vehicle Credit

The Clean Vehicle Credit provides up to:

• $7,500 off a new EV
• $4,000 off a used EV

However, qualifying is no longer as simple as it used to be.

While income limits and vehicle price caps have remained steady since 2023, the number of eligible models has dropped significantly as battery sourcing and assembly requirements have tightened — a change built into the law from the start.

Here are the broad requirements:

Income Limits

• New EV: Up to $300,000 for joint filers, or $150,000 for single filers
• Used EV: Up to $150,000 for joint filers, or $75,000 for single filers

Price Caps

• New EVs: Must be priced under $80,000 for SUVs, trucks, and vans, and under $55,000 for other cars
• Used EVs: Must be at least two model years old and cost $25,000 or less

Sourcing & Assembly

• The vehicle must be assembled in North America
• It must meet strict U.S. rules for battery components and critical minerals

Because of these sourcing rules, eligibility can hinge on very specific details — including trim level, optional features, and price. A few thousand dollars in add-ons could push a vehicle over the eligibility line.

“Double-check that the trim you want qualifies and stays under the price cap,” Valdez Streaty advises. She recommends researching specific models and configurations ahead of time to make sure they’re eligible.