Planning to Buy an EV? Do It by Sept. 30 to Get a Tax Break
The countdown is on for car shoppers looking to take advantage of the EV tax credit before it expires. This incentive, which has been in place since January 2023, offers a discount of up to $7,500 for qualifying electric vehicles and eligible buyers. However, this tax credit is set to end on September 30, along with a used EV tax credit of up to $4,000.
With just over a month left to claim the EV tax credit, car shoppers are rushing to make their purchases before the deadline. According to Cox Automotive, there has been a 26.4% increase in EV sales from June to July, making it the second best month for EV sales on record. As the supply of EVs decreases and prices rise, consumers are eager to secure a government-subsidized discount on their electric vehicle purchase.
If you’re in the market for an EV, now is the time to act. There are over 20 electric models eligible for the tax credit, with requirements such as final assembly in North America and a sticker price below $80,000 for SUVs, vans, and trucks or $55,000 for other vehicles. To qualify, your income must be below $150,000 for single filers or $300,000 for couples.
Lease deals on EVs are also a great option, with tax credit subsidies making them even more affordable. The eligibility rules for the tax credit are more lenient for leases, providing an opportunity for even more savings.
As the deadline for the EV tax credit approaches, demand for electric vehicles is expected to remain strong. However, once the credit expires, sales may slow down, leading to increased discounts from automakers and dealers. If you’re considering purchasing an EV, it’s best to act before the tax credit disappears to take advantage of the savings.
For more information on electric vehicles and the EV tax credit, check out our latest articles on the best electric cars of 2025, the differences between electric and gas vehicles, and the best auto refinance companies of 2025. Stay informed and make the most of this limited-time opportunity to save on your next electric vehicle purchase.
