---
title: "Last Call for EV Credits: Act Now Before They're Gone!"
description: Act now to secure valuable EV tax credits before they expire on September 30, 2025. Learn about the changes and how to maximize your savings.
---

[CRR Advisors Blog: Tax, Accounting & Business Advisory Insights | Boston, MA](https://www.crradvisors.com/blog)

# [Last Call for EV Credits: Act Now Before They're Gone!](https://www.crradvisors.com/blog/last-call-for-ev-credits-act-now-before-theyre-gone)

 Written by [Mariya Tsanova](https://www.crradvisors.com/blog/author/mariya-tsanova) | Jul 17, 2025, 2:46:13 PM

**New law slashes clean vehicle tax credits—here’s what you need to know (and do) before September 30th.**

If you’ve been thinking about buying an electric vehicle (EV), time is officially running out to take advantage of valuable tax credits. Thanks to the recently passed **One Big Beautiful Bill Act (OBBBA)**, several major clean energy tax incentives are being cut short, including EV purchase credits that were originally expected to last through 2032.

Whether you’re eyeing a brand-new Tesla or considering a used hybrid to save on fuel costs, there are real tax savings on the table—but only if you act fast**.** Here’s what’s changing, who qualifies, and how to lock in the benefit before the deadline.

**What’s Changing Under the New Law?**

Signed into law on **July 4, 2025**, the **OBBBA repeals or shortens many clean energy credits** originally created under the Inflation Reduction Act (IRA). For EV buyers, this means the following credits are now **set to expire on September 30, 2025**:

- **Clean Vehicle Credit** (new EVs)
- **Used Clean Vehicle Credit**
- **Commercial Clean Vehicle Credit**

Another related credit—the **Alternative Fuel Refueling Property Credit** for home EV chargers—will now expire **June 30, 2026**.

Additionally, the new law introduces an **unexpected bonus**: a **deduction for EV loan interest** on qualifying purchases.

**Clean Vehicle Credit (Up to $7,500)**

This is the main federal tax credit for buying a new electric or fuel cell vehicle.

**To Qualify:**

- **Purchased and placed in service by September 30, 2025**
- **Final assembly** must occur in **North America**
- Vehicle price cap: 
    - **$55,000** for cars
    - **$80,000** for vans, SUVs, and pickups
- Buyer income limits: 
    - **$300,000** for joint filers
    - **$225,000** for heads of household
    - **$150,000** for single filers

**Credit Breakdown:**

- $3,750 if the car meets **critical mineral requirements**
- $3,750 if the car meets **battery component requirements**
- $7,500 total if both are met

**Look up eligible vehicles:**  
[fueleconomy.gov/feg/tax2023.shtml](https://www.fueleconomy.gov/feg/tax2023.shtml)  
[afdc.energy.gov/laws/electric-vehicles-for-tax-credit](https://afdc.energy.gov/laws/electric-vehicles-for-tax-credit)

**Used Clean Vehicle Credit (Up to $4,000)**

Buying pre-owned? There’s a credit for that, too—but with tighter limits.

**To Qualify:**

- **Placed in service by September 30, 2025**
- Sold by a dealer for **$25,000 or less**
- At least **2 model years older** than current year
- Sale must be **first transfer** since August 16, 2022
- Buyer can’t have claimed a used EV credit in the last **3 years**
- Buyer income limits: 
    - **$150,000** for joint filers
    - **$112,500** for heads of household
    - **$75,000** for single filers

More info: [fueleconomy.gov/feg/taxused.shtml](https://www.fueleconomy.gov/feg/taxused.shtml)

**Commercial Clean Vehicle Credit (Up to $40,000)**

Designed for businesses, this credit applies to qualifying electric or hybrid commercial vehicles.

- Up to **$7,500** for vehicles under 14,000 pounds
- Up to **$40,000** for heavier vehicles like trucks or vans
- Credit is based on a % of cost or the difference between EV and gas equivalent

Deadline: **Placed in service by 9/30/2025**

**Alternative Fuel Refueling Property Credit**

This covers **30% of the cost** (up to $1,000) for individuals who install EV charging stations at home.

To qualify:

- Must be located in an **eligible census tract**
- Can claim through **June 30, 2026**

Check location eligibility:  
[DOE Mapping Tool](https://experience.arcgis.com/experience/3f67d5e82dc64d1589714d5499196d4f/page/Page)

**Bonus Tax Benefit: EV Loan Interest Deduction**

For the first time ever, **interest paid on loans to purchase a qualifying vehicle may be deductible**, up to **$10,000/year**from 2025–2028.

**Requirements:**

- Vehicle must meet “applicable passenger vehicle” definition
- Loan must be used to buy and secured by the vehicle
- Original use must begin with you
- Deduction applies whether or not you itemize

**Income Phaseouts:**

- Deduction phases out between: 
    - **$100,000–$150,000** for single filers
    - **$200,000–$250,000** for joint filers

**Key Deadlines You Can’t Miss**

**9/30/25            Clean Vehicle Credit (new)  
9/30/25            Used Clean Vehicle Credit  
9/30/25            Commercial Clean Vehicle Credit  
6/30/26            Alternative Fuel Refueling Property Credit  
Now-2028       EV Loan Interest Deduction**

**What You Should Do Now**

1. **Shop for a qualifying EV before September 30.**
2. **Check eligibility online** for the specific vehicle and your income level.
3. **Work with your lender** to ensure loan documentation supports the new interest deduction.
4. **Talk to a tax professional** to make sure you can claim all eligible credits—and time your purchase for maximum impact.
5. **Install a home EV charger** before June 2026 if you want to claim the property credit.

**Ready to Claim Your EV Credit?**

These benefits may not be around much longer. If you're considering an electric vehicle, **don't wait**—make your move while the tax incentives still exist. Your tax advisor can provide personalized guidance. If you have questions, leave a comment below, or feel free to contact me directly. I’m happy to help!

[View full post](https://www.crradvisors.com/blog/last-call-for-ev-credits-act-now-before-theyre-gone)

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