IRS Details Loophole Extending Federal EV Tax Credit
After months of speculation, the government announced earlier this summer that the federal electric vehicle tax credit has an expiration date: Sept. 30. But not so fast: The Internal Revenue Service recently updated the timeline, giving some buyers a bit more time.
Related: Which Electric Cars Are Still Eligible for the $7,500 Federal Tax Credit?
According to the IRS, if a buyer orders a vehicle and puts money down on it before Sept. 30 but takes delivery after that date, they can still claim the tax credit at that later date.
“If a taxpayer acquires a vehicle by having a written binding contract in place and a payment made on or before Sept. 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 Sept. 30, 2025. Taxpayers should receive a time-of-sale report from the dealer at the time they take possession or within three days of taking possession of the vehicle,” the IRS said on its website.
What does this mean for shoppers? The extension could save them thousands: Eligible shoppers can claim a credit of up to $7,500 for new EVs and up to $4,000 for used EVs.
More EV News From Cars.com:
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