President Donald Trump officially signed the Big Beautiful Bill into law on the Fourth of July and it officially ended the lucrative $7,500 Federal EV credit on all EV purchases. However, the credit is still in effect till September 30. Here's how you can still claim it on your new EV purchase.
How to qualify for the Federal EV Credit
To qualify for the Federal EV credit, you must fulfill certain criteria laid down by the U.S. government's IRS or Internal Revenue Service. The rules suggest that the consumer must buy the EV for personal use and not resale and use the EV within the U.S. primarily.
Also Read: Trump Vs. Bezos: How ‘Big Beautiful Bill’ May Wreck $20K EV Dream
As far as income is concerned, a single individual must make no more than $150,000 annually to qualify, while heads of households can make up to $225,000 to benefit from the credit.
Couples filing jointly have a $300,000 cap on income for the EV credit. The same limit also applies to surviving spouses, the IRS states.
What vehicles are eligible for the credit
IRS rules state that a vehicle must either be an all-electric, hybrid, or fuel cell vehicle with a battery capacity of at least 7 kilowatt hours and a gross weight of less than 14,000 pounds. Additionally, the vehicle must be manufactured by a qualified automaker.
As far as the price is concerned, a car shouldn't cost more than $55,000 while SUVs, Vans and Pickup trucks can cost no more than $80,000. The vehicles must also undergo assembly within the U.S. to qualify.
Eligible models include the Tesla Inc. (NASDAQ:TSLA) Model Y, Model X, Model 3 and the Cybertruck. It also includes vehicles from General Motors Co (NYSE:GM) like the Chevrolet Blazer, Equinox and Silverado, as well as the Cadillac Lyriq and more.
Credit on used EVs and other Information
The credit is also extended to used EVs, with a maximum amount of $4,000 extended on all purchases of eligible used vehicles. Used EVs must also be at least 2 years old and cost no more than $25,000 to be eligible.
Also Read: Trump’s Tax Bill Could Be A Boost For Tesla-Rivals Rivian, Lucid Amid EV Slowdown, Says BNP Paribas
Most importantly, you must take delivery of your EV before September 30, 2025, to qualify for the EV credit. You won't be eligible for the credit if you place an order before September 30 and take delivery of your vehicle post that date.
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