Federal Tax Credits for Plug-in Electric and Fuel Cell Electric Vehicles Acquired from January 1, 2023, through September 30, 2025
- Western Washington Clean Cities
- Sep 18
- 2 min read
All-electric (EV), plug-in hybrid (PHEV), and fuel cell electric vehicles (FCEV) acquired from January 1, 2023, through September 30, 2025, may be eligible for a federal income tax credit of up to $7,500.
The availability of the credit will depend on several factors, including the vehicle’s MSRP, its final assembly location, battery component and/or critical minerals sourcing, and your modified adjusted gross income (AGI).Vehicles that qualify are listed on FuelEconomy.gov’s Clean Vehicle Tax Credit Page.
IMPORTANT: A vehicle is acquired as of the date a written binding contract is entered into and a payment has been made. A payment includes a nominal downpayment or a vehicle trade-in. The credit cannot be claimed until the vehicle is placed in service (i.e., the taxpayer takes possession). However, as long as the vehicle is acquired by September 30, 2025, the taxpayer can claim the credit upon possession of the vehicle, even if that occurs after September 30, 2025. Learn more about additional requirements.
Pre-owned vehicles acquired from January 1, 2023, through September 30, 2025, may be eligible for a tax credit of up to $4,000.
EVs, PHEVs, and FCEVs acquired new by a business from January 1, 2023, through September 30, 2025, may be eligible for a federal income tax credit of up to $7,500 for vehicles under 14,000 pounds (lbs.) and $40,000 for vehicles above 14,000 lbs.
For the latest information on the expiring tax credits, please see the IRS’ FAQs for modification of sections 25C, 25D, 25E, 30C, 30D, 45L, 45W, AND 179D under Public Law 119-21, 139 Stat. 72 (July 4, 2025), commonly known as the One, Big, Beautiful Bill Act (OBBB) | Internal Revenue Service.
