There’s less than a month to get a $7,500 EV tax credit. Here’s what you should know.

Want a discount on electric vehicles? Better act fast.

Drivers in the US have until September 30 to qualify for federal EV tax credits, which President Donald Trump axed as part of his “Big Beautiful Bill.” The tax and spending bill, passed by Congress in July, eliminated a $7,500 tax credit for new EVs and a $4,000 tax credit for used EVs.

The decision is a blow to American EV manufacturers like Tesla, which could see a drop in sales as drivers reconsider the higher cost. However, some automakers say they expect a temporary boost in EV sales as people race to use the tax credits before they’re officially gone.

Here’s what you need to know before the deadline hits.

Who qualifies?

The IRS says drivers may qualify for an EV tax credit of up to $7,500 if they purchase a new, qualified plug-in EV or fuel cell electric vehicle. Drivers can’t buy the EV for resale and must use it primarily in the US.

Additionally, a driver’s modified adjusted gross income cannot exceed:

• $300,000 for married couples filing jointly or a surviving spouse
• $225,000 for heads of households
• $150,000 for all other filers

Which vehicles qualify?

The IRS says a qualifying EV vehicle must:

• Have a battery capacity of at least 7 kilowatt hours
• Have a gross vehicle weight rating of less than 14,000 pounds
• Be made by a qualified manufacturer
• Undergo final assembly in North America
• Meet critical mineral and battery component requirements (as of April 18, 2023)

Will you still qualify for EV tax credits if you purchase a contract by September 30?

The short answer is yes.

“Acquiring a vehicle prior to the termination date is an initial step, but acquisition alone does not immediately entitle a taxpayer to a credit,” the IRS says.

The car must also be “placed in service” to claim the credit, the IRS says. That just means you can only claim the credit after you have the car in your possession, and it’s OK if that’s after September 30.

“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.

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