What's left of the EV tax credit in 2026?

The One Big Beautiful Bill Act killed the $7,500 new EV credit and the $4,000 used EV credit on September 30, 2025. Here's what's still available — and what to do if you bought an EV anyway.

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TL;DR

  • Gone: $7,500 new EV credit (§30D), $4,000 used EV credit (§25E), commercial credit / lease loophole (§45W). All expired 2025-09-30.
  • Still alive: Home EV charger credit (§30C) — 30% up to $1,000, but only through June 30, 2026 and only in eligible census tracts.
  • New: OBBBA auto-loan interest deduction — up to $10,000/yr in deductible interest for new, US-assembled vehicles purchased after Dec 31, 2024. Available 2025-2028. Phase-out starts at $100k single / $200k MFJ.
  • State and utility incentives still apply. Federal cuts don't touch state programs — see our EV deals page for what your state offers.

The four credits that died on Sept 30, 2025

§30D — New Clean Vehicle Credit (was up to $7,500)

The marquee EV credit. Up to $7,500 off the top of a new EV purchase, available since 2010 and expanded by the Inflation Reduction Act in 2022. The OBBBA terminates it for vehicles acquired after September 30, 2025. The IRS definition of "acquired" matters: it requires both a written binding contract and a payment (which can be a nominal down payment or trade-in). If both happened on or before Sept 30, 2025, you can still claim the credit even if delivery happens later.

§25E — Previously-Owned Clean Vehicle Credit (was up to $4,000)

The used EV credit, capped at the lesser of $4,000 or 30% of sale price, on vehicles priced ≤ $25,000. Same transition rule as §30D — binding contract + payment by Sept 30, 2025. Used EV shoppers who missed the deadline should focus on state programs (Colorado just bumped its used credit to $6,000, for example) and the lease-return wave coming in late 2026 which is expected to push used prices down 10-20%.

§45W — Commercial Clean Vehicle Credit (closed the lease loophole)

Less famous but consequential: §45W let captive-finance arms (Tesla Lease, Ford Credit, etc.) claim a $7,500 commercial credit on EVs they leased and pass the savings through as a capitalized cost reduction. This was the well-known "lease loophole" that let people without enough tax liability get the full benefit. It also expired Sept 30, 2025. Pre-existing leases retain pass-through for the original term, but new leases get nothing.

What's still available

§30C — Home EV Charger Credit (through June 30, 2026)

If you install Level 2 charging at home before June 30, 2026, you can claim 30% of the installation cost, capped at $1,000. This covers the charger itself plus electrical work needed to install it. Two important catches:

  • Eligible census tract requirement. Your home has to be in a low-income or non-urban census tract per IRS Notice 2024-20. Use the IRS census tract mapping tool to confirm before assuming you qualify.
  • "Placed in service" standard. Unlike the vehicle credits, §30C uses placed-in-service date, not purchase date. Your charger has to be installed and operational on or before June 30, 2026.

Tip: this stacks well with our free panel calculator — find out if your existing service can handle a Level 2 charger before paying an electrician for a quote.

OBBBA Auto-Loan Interest Deduction (the closest §30D replacement)

This is the new thing most buyers don't know about yet. OBBBA created a deduction (not a credit) for interest paid on qualifying vehicle loans. It's worth less than the old credit for most buyers — but not negligible.

How much is it actually worth? If you're in the 22% bracket and pay $5,000 in vehicle-loan interest in a year, this deduction saves you $1,100 — for that year. Apply it across a 5-year loan and total savings can exceed $4,000 in the right circumstances. But for a 24-month loan or a high-income buyer hit by phase-out, the math gets thinner quickly.

The eligibility tool below walks the rules:

OBBBA loan deduction — am I eligible?

Answer the four gates below and we'll show your estimated deduction at your filing status / income level. Not tax advice — talk to your CPA before relying on the number.

Vehicle

Check at FuelEconomy.gov VIN decoder. Plant location matters — same model can be built in different countries.

Loan

The loan must be secured by the vehicle itself. Leases and unsecured personal loans don't qualify.
Capped at $10,000/yr by the rules. Type your estimate or use the slider.

Income

Phase-out: $200k → $250k. Deduction shrinks $200 per $1,000 over $200k.
⚠️ Confirm US assembly to see your result
Not tax advice. This is an eligibility estimator, not a filing tool. Confirm the deduction with your tax professional before relying on it. Rules verified against IRS guidance for P.L. 119-21 (One Big Beautiful Bill Act).

Key facts

  • Maximum deduction: $10,000 of interest per year.
  • Available for: Tax years 2025 through 2028.
  • Above-the-line: You can claim it even if you take the standard deduction.
  • Vehicle types: All fuel types — this is NOT EV-specific. But it's the closest replacement for the lost §30D credit.
  • VIN required: Must include the vehicle's VIN on your tax return.

Don't forget state and utility programs

Federal cuts don't touch state-level incentives, and a handful of states have actually increased theirs in response to the OBBBA. Notable 2026 stackers:

  • Colorado: $9,000 new EV / $6,000 used EV (bumped Aug 2025).
  • California: Clean Vehicle Rebate Project paused but local utility rebates active.
  • Maine: $9,000 stackable rebates for moderate-income buyers.
  • New Jersey: Charge Up NJ — up to $4,000 (volume capped, refreshed annually).
  • Utility rebates: Most major utilities offer $300-$1,000 for Level 2 charger install. Check your utility's rate sheet.

Our EV Deals page tracks active state and utility rebates — we update it monthly.

FAQ

Is the $7,500 federal EV tax credit still available in 2026?

No. The §30D Clean Vehicle Credit expired Sept 30, 2025 under the One Big Beautiful Bill Act (P.L. 119-21). Vehicles acquired on or before that date — meaning a written binding contract was in place AND a payment was made — can still claim the credit even if delivered later. Acquisitions after Sept 30, 2025 do not qualify.

What about the used EV tax credit?

The §25E Previously-Owned Clean Vehicle Credit (up to $4,000) also expired Sept 30, 2025. Same binding-contract transition rule as §30D.

Can I still claim a tax credit for installing a home EV charger?

Yes, if your charger is placed in service on or before June 30, 2026. The §30C Alternative Fuel Vehicle Refueling Property Credit covers 30% of installation cost, capped at $1,000 for residential. Your home must be in an eligible census tract (low-income or non-urban area) — use the IRS census tract tool to confirm.

What is the OBBBA auto-loan interest deduction?

A new above-the-line deduction created by the OBBBA, available for tax years 2025-2028. You can deduct up to $10,000 per year of interest paid on a qualifying vehicle loan. The vehicle must be new, final-assembled in the US, financed with a secured loan (not lease), and acquired after Dec 31, 2024. The deduction phases out between $100k-$150k MAGI for single filers and $200k-$250k for married filing jointly.

Does the OBBBA loan deduction only apply to EVs?

No — all fuel types qualify (gas, hybrid, EV) as long as the vehicle is new, US-assembled, and financed with a secured loan. For EV buyers, this is the closest replacement to the lost §30D credit, but it is not EV-specific.

Is the lease loophole (commercial credit pass-through) still available?

No. The §45W Commercial Clean Vehicle Credit also expired Sept 30, 2025. Captive-finance lessors can no longer claim §45W and pass the savings through as a capitalized cost reduction on new leases. Pre-existing leases retain pass-through for the original term.

Sources

Last verified against IRS guidance: . We re-verify quarterly. This is general information, not tax advice.