Act Fast: EV Tax Credits Expire September 30, 2025

If you're considering purchasing an electric vehicle (EV) for personal or business use, time is running out to take advantage of generous federal tax incentives. A new law has officially shortened the timeline for claiming EV tax credits: September 30, 2025, is now the final day to qualify.

 

What’s Changing in EV Tax Credits?

Under the Inflation Reduction Act, taxpayers previously expected federal EV tax credits to last through 2032. However, the newly passed legislation sets a firm expiration date—September 30, 2025—after which no federal EV tax credits will be available.

Here’s what you can still claim if you act in time:

• New EV Tax Credit: Up to $7,500 for qualifying new electric vehicles
• Used EV Tax Credit: Up to $4,000 for eligible used EVs
• Commercial Clean Vehicle Credit: Up to $40,000 for business-use electric vehicles

Why It Matters for Your Business

If you're a business owner, this could be a golden opportunity to cut costs while modernizing your fleet. The Commercial Clean Vehicle Credit offers up to $40,000 per qualifying vehicle—a substantial tax incentive that won’t be around much longer.

Common business use cases include:

• Delivery vans and fleet vehicles
• Company cars or executive transportation
• Electric trucks and work vans for trades
• Replacing aging or inefficient vehicles

EV Tax Credit Deadline: What “Placed in Service” Really Means

To qualify, your vehicle must be placed in service by September 30, 2025. This doesn’t just mean “ordered”—it means the vehicle is delivered, registered, and ready for use.

Key considerations:

• Order early – Vehicle delivery can take weeks or months
• Complete paperwork – Title transfer and tax documents must be finalized
• Secure financing – Don’t let approval delays cost you the credit

 

EV Eligibility Rules (2025)

To qualify before the deadline, both personal and commercial EVs must meet certain requirements:

For New EVs:

• Final assembly in North America
• Battery component and critical mineral sourcing thresholds
• MSRP limits ($55,000 for cars, $80,000 for SUVs/trucks)
• Income limits: $150K (single), $300K (married)

For Used EVs:

• At least two years old
• Sale price under $25,000
• Purchased from a dealer
• Income limits: $75K (single), $150K (married)
• Credit can only be claimed once every 3 years

 

Final Thoughts: Seize the EV Tax Credit Before It’s Gone

This policy change marks a turning point in federal EV incentives. While the financial benefits are still significant—up to $40,000 for commercial vehicles and $7,500 for new personal EVs—you must finalize your purchase and delivery before September 30, 2025.

 

Next Steps

• Talk to your tax advisor to understand how the credit applies to you
• Research eligible EVs now while inventory lasts
• Plan purchases early to avoid last-minute delays
• Act before September 30, 2025 to lock in savings