When did the federal EV tax credit end?

For vehicles acquired after September 30, 2025. That cutoff ended the $7,500 new-vehicle credit (§30D), the $4,000 used-EV credit (§25E), and the commercial/leasing credit (§45W).

Is there any federal EV incentive left in 2026?

The purchase credits are gone, but a car-loan interest tax deduction for new, U.S.-assembled vehicles may still apply for tax years 2025–2028, with income limits. It's a deduction on taxable income, not a point-of-sale discount — eligibility depends on your situation.

Is the $7,500 EV Tax Credit Still Available in 2026? (No — Here's What Happened)

No. The federal EV purchase tax credits ended for vehicles acquired after September 30, 2025, under the One Big Beautiful Bill Act (OBBBA). If you’re buying an EV in 2026, the $7,500 credit no longer applies — and any calculator or dealer still showing it is using outdated numbers.

Use our live 2026 cost-of-ownership calculator to run your real math with $0 federal credits →

Which credits ended

Three federal purchase incentives ended on the same date — for vehicles acquired after September 30, 2025:

The $7,500 new-vehicle credit (§30D) — gone. This was the main incentive most shoppers knew about for buying a new electric car.
The $4,000 used-EV credit (§25E) — gone. This applied to qualifying used electric vehicles from a dealer.
The commercial/leasing credit (§45W) — gone. This covered commercial purchases and many lease arrangements that previously passed the credit through to lessees.

All three ended under OBBBA. For 2026 buyers, the federal purchase incentive is $0.

Why are other sites still showing $7,500?

Many calculators and listings haven’t updated their assumptions, so they still subtract a credit that no longer exists — which overstates EV savings by thousands. Our calculator defaults these to $0 so your result reflects today’s real rules.

What federal break DID survive: the car-loan interest deduction

One break did survive — but it works differently from the old credits. OBBBA created a tax deduction (not a point-of-sale credit) for car-loan interest on new, U.S.-assembled vehicles, for tax years 2025–2028, with income limits that phase out the benefit at higher incomes.

It reduces your taxable income rather than cutting money off the sticker price. Eligibility depends on your income, how you finance, and whether the vehicle qualifies — used vehicles and leases generally don’t qualify. This is a deduction, not a discount, and the details depend on your situation — verify your own eligibility (a CPA can confirm).

So is an EV still worth it without the credit?

Sometimes yes, sometimes no — it depends on your miles, charging situation, and how long you keep the car. Lower running costs can still beat a gas car over time, but the math is closer without the credit. Run your own numbers rather than trusting a headline savings figure.

Open the 2026 EV vs. gas calculator → · Is an EV worth it without the tax credit? →

Calculate your real EV vs. gas cost →

FAQ

Is the $7,500 EV tax credit still available in 2026?: No. The federal EV purchase tax credits ended for vehicles acquired after September 30, 2025. If you’re buying in 2026, the $7,500 credit no longer applies.
When did the federal EV tax credit end?: For vehicles acquired after September 30, 2025 — under the One Big Beautiful Bill Act. That cutoff ended the §30D, §25E, and §45W credits.
Is there any federal EV incentive left in 2026?: The purchase credits are gone, but a car-loan interest tax deduction may still apply for qualifying new, U.S.-assembled vehicles (tax years 2025–2028), with income limits. It’s a deduction on taxable income, not a sticker-price discount — check your own eligibility.