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EV Buyers Can Still Get the $7,500 Tax Credit After September 30 — Here’s How
This is good news for EV buyers and manufacturers, even if the relief is only temporary
There’s little more than a month to go before the federal tax credit for electric vehicles, worth up to $7,500, falls away as part of the One Big Beautiful Bill Act. This incentive will make cheaper EVs like the Chevrolet Equinox EV much less affordable, but more expensive ones will also be affected. The credit officially falls away after September 30, but the IRS has clarified that buyers who take delivery after this date can still qualify for the incentive. This could be crucial for EV shoppers looking to save on a new vehicle purchase late in September, so if that's you, here's what you need to know.
Purchase Contract Dates Crucial—Not Delivery DatesTesla
It was understood by manufacturers that delivery of a new electric vehicle had to occur by September 30 for the federal tax credit to apply, but this isn’t the case.
Here’s what new guidance from the IRS states:
“If a taxpayer acquires a vehicle by having a written binding contract in place and a payment made on or before September 30, 2025, then the taxpayer will be entitled to claim the credit when they place the vehicle in service (namely, when they take possession of the vehicle), even if the vehicle is placed in service after September 30, 2025. Taxpayers should receive a time of sale report from the dealer at the time they take possession or within three days of taking possession of the vehicle.”
This clearer wording is an advantage for manufacturers and consumers alike, but the relief will only be temporary.
Inventory Now A Secondary Concern2025 Ford F-150 Lightning Lariat
Ford
This guidance from the IRS creates an opportunity for manufacturers like Ford, Tesla, and Chevrolet to sell as many EVs as they can before September, even if the cars aren’t ready to be delivered to buyers. Orders can simply be backfilled, as long as the buyer has signed for the purchase and has made at least one payment by September 30, which could be a deposit.
The IRS guidance doesn’t specify when qualifying EVs would need to be delivered, either. For people who have decided on an EV they want but have run out of time to have it delivered before September 30, this is an opportunity to get the desired vehicle anyway, with the incentive included—as long as they’re willing to wait for delivery.
According to a previous report from Bloomberg, sales of EVs in the United States are predicted to fall by 27% without the tax credit, and economists predict there’ll be 317,000 fewer EV registrations per year.
Automakers are already working hard to mitigate the implications of the tax credit falling away, with hugely attractive deals, including leases for EVs for as little as $100 per month.
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This is good news for EV buyers and manufacturers, even if the relief is only temporary
There’s little more than a month to go before the federal tax credit for electric vehicles, worth up to $7,500, falls away as part of the One Big Beautiful Bill Act. This incentive will make cheaper EVs like the Chevrolet Equinox EV much less affordable, but more expensive ones will also be affected. The credit officially falls away after September 30, but the IRS has clarified that buyers who take delivery after this date can still qualify for the incentive. This could be crucial for EV shoppers looking to save on a new vehicle purchase late in September, so if that's you, here's what you need to know.
Purchase Contract Dates Crucial—Not Delivery DatesTesla
It was understood by manufacturers that delivery of a new electric vehicle had to occur by September 30 for the federal tax credit to apply, but this isn’t the case.
Here’s what new guidance from the IRS states:
“If a taxpayer acquires a vehicle by having a written binding contract in place and a payment made on or before September 30, 2025, then the taxpayer will be entitled to claim the credit when they place the vehicle in service (namely, when they take possession of the vehicle), even if the vehicle is placed in service after September 30, 2025. Taxpayers should receive a time of sale report from the dealer at the time they take possession or within three days of taking possession of the vehicle.”
This clearer wording is an advantage for manufacturers and consumers alike, but the relief will only be temporary.
Inventory Now A Secondary Concern2025 Ford F-150 Lightning Lariat
Ford
This guidance from the IRS creates an opportunity for manufacturers like Ford, Tesla, and Chevrolet to sell as many EVs as they can before September, even if the cars aren’t ready to be delivered to buyers. Orders can simply be backfilled, as long as the buyer has signed for the purchase and has made at least one payment by September 30, which could be a deposit.
The IRS guidance doesn’t specify when qualifying EVs would need to be delivered, either. For people who have decided on an EV they want but have run out of time to have it delivered before September 30, this is an opportunity to get the desired vehicle anyway, with the incentive included—as long as they’re willing to wait for delivery.
According to a previous report from Bloomberg, sales of EVs in the United States are predicted to fall by 27% without the tax credit, and economists predict there’ll be 317,000 fewer EV registrations per year.
Automakers are already working hard to mitigate the implications of the tax credit falling away, with hugely attractive deals, including leases for EVs for as little as $100 per month.