The IRS has again changed the deadline for the expiration of the $7,500 electric vehicle tax credit. According to the latest IRS clarification, buyers will be allowed to claim this credit as long as they do so by September 30th.
This incentive will officially be eliminated starting October 1 as part of the One Big Beautiful Bill Act
According to the update posted on the agency’s website, if a buyer has a “binding written contract” and has made a deposit before or on September 30, 2025, they will still be able to claim the full tax credit. This incentive, in place for decades, will officially be eliminated starting October 1 as part of the One Big Beautiful Bill Act, which was passed earlier this year as part of Donald Trump’s reforms.
The rule ended the benefit, which was designed to boost the adoption of electric cars in the United States
Until now, the credit was granted based on the date a buyer took delivery of the vehicle. “If a taxpayer acquires a vehicle through a binding written contract and makes a payment on or before September 30, 2025, then the taxpayer will be entitled to claim the credit when they place the vehicle in service (i.e., when they take possession of the vehicle), even if the vehicle is placed in service after September 30, 2025,” they explained in a statement. The rule ended the benefit, which was designed to boost the adoption of electric cars in the United States.
This modification greatly facilitates the process, ensuring that the demand for electric vehicles is not thwarted by delivery delays
With the published clarification, the IRS confirmed that signing a binding contract before September 30, accompanied by some payment—either a down payment or even the exchange of another vehicle—will be sufficient to secure the right to the credit, even if delivery occurs later. This modification greatly facilitates the process, ensuring that the demand for electric vehicles, which has skyrocketed recently, is not thwarted by delivery delays.
For used cars, separate credit of up to $4,000 is available
It has been emphasized that this flexibility will be especially helpful for those placing factory orders or moving vehicles across state lines. By allowing binding contracts to secure credit beyond September 30, demand for electric vehicles will be more evenly distributed over time, avoiding chaos at retail outlets. For used cars, a separate credit of up to $4,000 is available, provided the vehicle is at least two years old and does not exceed $25,000. This is also an issue of concern to thousands of buyers.
Requirements: final assembly must have taken place in North America, price limits must be those established by law, an income of no more than $150,000 per year for individuals…
To qualify for this credit, certain requirements must be met: final assembly must have taken place in North America, price limits must be those established by law, batteries must contain minerals and components of domestic origin or from partner countries, and an income of no more than $150,000 per year for individuals and $300,000 for couples must be met.
The manufacturer’s suggested retail price, or MRSP, cannot exceed $80,000 for minivans
Additionally, according to the IRS’s official website, the vehicle must be for personal or business use and primarily used within the United States. Specifically, the vehicle must have a battery with a capacity of at least 7 kilowatt-hours and a gross vehicle weight of 14,000 pounds or less. Furthermore, the manufacturer’s suggested retail price, or MRSP, cannot exceed $80,000 for minivans, sport utility vehicles, and pickup trucks, or $55,000 for other vehicles.
