Last chance to save $7,500 on an EV—your burning questions answered

The clock is ticking on the federal EV tax credit. With the $7,500 incentive for new EVs and $4,000 for used models set to expire September 30, 2025, shoppers have just days left to save thousands on their next electric vehicle.

After marathon debates in Congress and the signing of President Trump's "Big Beautiful Bill" on July 4, the credits that were originally slated to continue through 2032 will vanish completely—no phase-out, no warning beyond this final deadline.

For context, this isn't just pocket change we're talking about. According to Kelly Blue Book, the average new electric vehicle costs $57,245 as of August 2025. That $7,500 credit represents a 13% discount. August EV sales surged almost 18% year-over-year as buyers rushed to beat the deadline. Now, as we enter the last weekend to claim the credit before it expires, the questions are piling up faster than cars at a charging station.

We answer the 10 most pressing questions about what this means for your next car purchase and the future of electric transportation in America.

The federal tax credits for electric vehicles—worth up to $7,500 for new EVs and plug-in hybrids, and up to $4,000 for used ones—expire completely on September 30, 2025. These credits, which were supposed to continue through 2032 under the Inflation Reduction Act, were cut short when Congress passed the reconciliation bill earlier this year.

Unlike past changes to EV incentives that included gradual phase-outs, this is a hard stop. One day you can save thousands; the next day you can't. The credit applies to both battery electric vehicles (BEVs) and plug-in hybrids (PHEVs), though each must meet specific requirements, including North American assembly and battery sourcing rules.

There's some breathing room: You don't necessarily need to drive your EV home by September 30. According to recent IRS guidance, you need to have a written binding contract in place and make a payment by that date. This means if you sign a contract and put down a deposit by September 30, you can still qualify for the credit even if the car arrives in October or later.

This clarification is especially helpful if you're ordering a vehicle that needs to be manufactured or shipped from another state. The key is having that contract signed and payment made—not necessarily taking delivery.

Not every EV qualifies for the full credit. The list changes frequently as automakers scramble to meet battery sourcing requirements. Currently, popular qualifying models include various configurations of the Tesla Model 3 and Model Y, Chevrolet Blazer EV, Ford F-150 Lightning, and select Hyundai and Genesis models.

Just keep in mind that even within a given model, some trims or battery configurations may not qualify, depending on how their battery materials are sourced or assembled. So, make sure to verify the specific VIN or trim’s eligibility. The credit is also split into two halves: One portion for satisfying “battery component / assembly” requirements and another for “critical mineral sourcing.” Some vehicles may qualify only partially (i.e. $3,750) if they meet one but not both requirements.

Remember, SUVs, vans, and pickups have an $80,000 price cap, while other vehicles cap at $55,000. These limits refer to the manufacturer's suggested retail price (MSRP), not what you negotiate at the dealership. Always verify current eligibility at fueleconomy.gov before making your purchase.

While you only need to sign paperwork to claim the EV tax credit, the charging tax credit is more time-intensive—the installation needs to be complete. The good news is that you still have until June 30, 2026 to get that charger installed and claim the credit.

The 30C Alternative Fuel Infrastructure Tax Credit provides up to 30% of the total cost (up to $1,000) for installing an EV charger at your home—but there's a catch. You must live in an eligible low-income community or non-urban census tract to qualify. You can check your eligibility using the Department of Energy's mapping tool.

You must file for the tax credit in the year the charging infrastructure was placed in service. So if you install your charger in 2025, you'll claim the credit on your 2025 tax return. Unlike the EV purchase credit, there's no point-of-sale rebate option—this one requires waiting until tax season.

The immediate loss is straightforward: $7,500 for new EVs or $4,000 for used ones. But the real impact depends on your situation. If you're financing, that $7,500 could mean the difference between a $500 and $600 monthly payment. For cash buyers, it's $7,500 less to invest or keep in savings.

Industry analyst Karl Brauer warns the impact could be severe. “I think you're going to see third quarter EV sales probably go up slightly, or at least remain strong, simply because people who want to buy one are going to jump in before that Sept. 30 deadline,” he told Yahoo Finance. After that, he predicts EV market share could drop to as low as 4%, half of the current levels.

Both the residential EV tax credit (Section 30D) and the commercial credit (Section 45W) that dealers use for leased vehicles expire on September 30, 2025.

Section 45W explicitly states, "No credit shall be determined under this section with respect to any vehicle acquired after September 30, 2025." The IRS has confirmed in its official guidance that no commercial credits will be allowed for vehicles acquired after this deadline.

But, if you sign a binding lease agreement and make a payment by September 30, you can still benefit from the credit even if the vehicle is delivered later. This means dealers can still claim the commercial credit and pass those savings to you through lower lease payments—but only if your lease is signed and paid for before the deadline.

After September 30, you're on your own. Some manufacturers have announced they'll offer their own $7,500 discounts to maintain sales momentum, but these company-specific incentives will vary widely and aren't guaranteed to match the federal credit's value.

Yes, and they haven't changed. To qualify for the new EV credit, your modified adjusted gross income must be below $300,000 for joint filers, $225,000 for heads of household, or $150,000 for single filers. For used EVs, the limits are lower: $150,000 for joint filers and $75,000 for singles. And there aren’t limits if you lease your EV because the credit technically goes to the dealer.

You can use either your current year's income or the previous year's—whichever is lower. This flexibility helps if you've had a recent income change that might affect your eligibility.

If you can’t purchase an EV in the next week, you may still be able to claim other incentives. Some states are trying to cushion the blow. New Jersey's Charge Up program offers up to $4,000 per vehicle through 2026. Other states like New York and Massachusetts have their own incentive programs, though none match the federal credit's value. And many utility companies also offer rebates for home chargers and special EV electricity rates.

The landscape varies dramatically by state. For example, states like Alabama and Mississippi offer little to no state-level support. Check your state's incentives at DSIRE before making your decision.

The market is about to flip dramatically. With the credit deadline just days away, we're seeing the final surge of buyers rushing to lock in savings before September 30. After that? Expect a very different landscape.

Many manufacturers are already planning their post-credit strategies—which, especially with EV sales volumes already down earlier this year, will likely include price cuts, according to Ivan Drury, director of insights at car buying site Edmunds.

“If you already can’t sell the vehicles at current prices, there’s no way you are going to sell them at today’s prices with this credit going by the wayside,” he told CNN. For buyers, this could mean manufacturer discounts that partially replace the federal credit.

The next few months will be telling for the entire EV industry—and for shoppers weighing whether to wait and see if prices drop, or lock in current deals while inventory is still available.

The EV industry faces a significant transition. "There's no doubt we'll see lower EV sales next quarter after tax credits end September 30, and it may take several months for the market to normalize," said Duncan Aldred, senior vice president of General Motors North America, in a recent statement. "We will almost certainly see a smaller EV market for a while, and we won't overproduce. Still, we believe GM can continue to grow EV market share." 

Next week marks a watershed moment for electric vehicle adoption in America. The difference between buying before or after September 30 is thousands of dollars. So if you’re on the fence, head to the dealership this weekend, and take an EV for a spin. There’s a good chance you’ll leave with a new electric car.