Federal EV tax credits in 2026: what ended and what to check
For vehicles acquired after September 30, 2025, the federal new and used clean-vehicle credits are no longer available. Earlier acquisitions can have different rules even if the vehicle was delivered later. Check the IRS acquisition requirements before including a federal credit in a purchase calculation. State and utility incentives must be checked separately.
This page summarizes what the IRS says and points to the sources. It is general information, not tax advice, and it cannot tell you whether you personally were or are eligible for anything.
The short version
- The IRS states that the new clean vehicle credit and the used clean vehicle credit are not available for vehicles acquired after September 30, 2025.
- What matters is when the vehicle was acquired, not only when it was placed in service. A vehicle placed in service later can still qualify only when it was acquired by that cutoff, which the IRS ties to a binding written contract plus a payment. The IRS pages govern the exact wording.
- This site’s calculators therefore start any federal incentive at $0. If you enter an incentive, it should be an amount you have verified separately.
- State, utility and commercial programs are separate and have their own rules. Check each program’s own page.
What the IRS pages say
The IRS pages (read October 15, 2026) cover the credit for new clean vehicles and the credit for previously owned clean vehicles. Both say the credit is not available for a vehicle acquired after September 30, 2025. They distinguish the date a vehicle was acquired from the date it was placed in service, and explain what counts as having acquired it by the cutoff, including the binding written contract and payment requirement. Read those sections on the IRS pages rather than relying on a summary here.
Historical amounts, for context only
Historical, not available for new acquisitions. For vehicles acquired on or before September 30, 2025 that met all the requirements, the new clean vehicle credit was up to $7,500 and the used clean vehicle credit was up to $4,000. The vehicle, price, buyer-income and dealer requirements for those credits are set out on the IRS pages and are not repeated here, so this page does not present superseded rules as current ones.
Leases and the commercial credit
Earlier versions of this page described lessors passing a commercial clean vehicle credit through to lessees. The IRS says the commercial clean vehicle credit is also not available for vehicles acquired after September 30, 2025, and that a later placement in service does not erase that cutoff. Do not assume a lease includes any credit. Ask the lessor in writing whether the quoted payment includes any incentive and what happens if it is not available.
State and utility programs
State, local and utility incentives are separate from the federal credits, change often, and differ in amount, income limits and timing. This page lists no amounts because none have been verified for this update. Start with the U.S. Department of Energy’s Alternative Fuels Data Center laws and incentives search, then confirm on your state energy office’s and electric utility’s own program pages before relying on anything.
A worked example (illustrative assumptions)
Assumptions: a $42,000 EV, no federal credit (acquired after September 30, 2025), and a hypothetical $2,000 state incentive that you have verified yourself. The $2,000 is an example amount, not a program’s actual figure.
| Item | Amount |
|---|---|
| Sticker price | $42,000 |
| Federal credit | $0 |
| Verified state incentive (example) | −$2,000 |
| Effective cost | $40,000 |
Enter your own verified amounts in the EV Break-Even Calculator or the Total Cost of Ownership calculator. Both default to $0 and do not decide eligibility.
Where to verify
- IRS: new clean vehicle credit and IRS: used clean vehicle credit — the authoritative federal sources.
- DOE Alternative Fuels Data Center — a starting point for state and utility programs.
- Your state energy office and electric utility — the program pages themselves.
- A tax professional, for your own situation.
Tools for the math
- EV Break-Even Calculator — how fast savings pay back the price premium.
- EV vs Gas Savings Calculator — annual running-cost difference.
- EV Loan Monthly Payment — financing with any verified incentive applied as a down payment.
Related reading
- Buying a used EV — what to check when federal credits are not part of the price
- Should you buy an EV in 2026? — the math without a federal credit
- EV depreciation in 2026 — how incentives affected first-year value loss
- EV vs hybrid vs PHEV — a cost comparison without federal credits
- EV insurance — another running-cost factor on top