Federal EV Tax Credit is Ending

Federal EV Tax Credit Expiration

• A major development of the “One Big Beautiful Bill Act,” signed into law on July 4, 2025, is the planned expiration of all federal EV tax credits.
• The federal tax credit for new and used EVs, including credits for leased vehicles, will officially end on September 30, 2025.
• This means that for a buyer to be eligible for the credit, the vehicle must be purchased and a “time of sale” report must be submitted by the dealer to the IRS before the deadline expires on September 30.

Please be aware though, that based on the latest information, the IRS Energy Credits Online (ECO) portal, which dealers use to submit “time of sale” reports, will not immediately shut down on September 30, 2025.

Here’s a breakdown of what to expect:

The 9/30/2025 deadline is for sales, not the website: The deadline of September 30, 2025, is for the purchase and delivery of the EV. The tax credits for new, used, and commercial clean vehicles will no longer be available for vehicles purchased after this date.

The website will remain operational for continued access for reporting as well as for audits and record-keeping access, addressing any discrepancies with past reports, and other inquiries related to the tax credit program.

It’s important to note that the existing eligibility requirements, such as income caps and battery component sourcing rules, still apply to vehicles purchased before the deadline. While a vehicle might have been on the list of eligible EVs before the new law, you still need to meet all the criteria to claim the credit.

Disclaimer: This article provides general information and should not be considered professional financial or tax advice. Please consult with a qualified CPA or financial advisor for guidance specific to your individual business needs.