FEDERAL CLEAN VEHICLE CREDIT (30D)
* EXPIRED *
New EV tax incentive (30D)
The deadline to purchase a vehicle has passed. If you purchased a vehicle by September 30, 2025, read on for how to apply this credit to your 2025 tax return.
You can claim this incentive if you are eligible and purchased your used vehicle from a registered dealership by the deadline.
View other tax credits for EVs:
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Introduction
Introduction
Disclaimer: The information presented here is for educational purposes only. It is not intended to provide specific tax guidance. For questions regarding your individual tax situation, we suggest consulting with your tax advisor.
Tax Credit
Up to $7,500
Expired September 30, 2025
What is the 30D new EV tax incentive?
The new EV tax incentive gives qualifying households up to $7,500 towards the purchase of an electric vehicle.
The 30D new EV tax incentive provides up to $7,500 toward brand-new electric cars with a maximum sticker price, or MSRP, of $55,000, and new vans, pickup trucks, and SUVs, with a max MSRP of up to $80,000.
This tax incentive makes buying a new EV more affordable for Americans by reducing the cost of new electric vehicles at the time of purchase.
Here’s a quick breakdown of the incentive by vehicle type:
| Vehicle Type | Incentive amount |
|---|---|
| Vehicle Type:Brand-new EV with a maximum MSRP of $55,000 | Incentive amount:Up to $7,500 in up-front discounts for qualifying vehicles |
| Vehicle Type:Brand new electric van, pickup truck, or SUV with a maximum MSRP of $80,000 | Incentive amount:Up to $7,500 in up-front discounts for qualifying vehicles |
Sources: IRS; IRS Pub. 5865
The new EV tax credit only applies to brand-new electric vehicles and does not include used EVs. (Used EVs qualify for a different incentive program, the 25E Used EV Tax Incentive, which we cover in this article.)
The first step in using this upfront tax incentive is determining whether a new EV qualifies. The rules vary depending on many factors, including an EV’s make, model, and where parts for the vehicle were manufactured and assembled. The rules for these requirements are updated each year. To find vehicles that currently qualify for the tax credit, you should visit this federal government website.
New EVs must meet multiple requirements in order to qualify for this incentive, so make sure you talk with your car dealer before you make a purchase. They’re required by law to provide you with the information you need to ensure your EV purchase qualifies, including the VIN.
You can find a complete list of the information your car dealer must provide on the IRS website.
Who qualifies for the 30D new EV tax incentive?
Incentives are limited based on income. Here’s what you need to know.
Individuals and households that meet income requirements
New EV purchases are subject to income caps based on income tax filing status. Those caps are:
$300,000 for married couples filing jointly
$225,000 for heads of households
$150,000 for all other filers
If you fall at or below the income cap for one of these categories, congratulations—you're eligible for a 30D tax incentive!
If you fall above your designated income cap, or think you might by the end of the 2025 tax year, do not claim this incentive! You will be required to pay it back.
Which new EVs qualify?
New EVs must meet IRS requirements in order to qualify for a full or partial tax incentive. Battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) both qualify, but traditional hybrid vehicles (without a charging plug) do not.
There are tons of new EVs on the market, but not all of them qualify for the 30D tax incentive, and some might only qualify for half of the incentive. Some EVs that qualified for this tax incentive in previous years no longer do.
To make sure that the EV you want to purchase qualifies for this tax incentive, talk to your dealer before making a purchase. They are required by law to provide you with the information you need to know if a car qualifies.
You can also look up information about whether a specific vehicle qualifies for a 30D tax incentive on this federal government website.
If you’re interested in learning about requirements that new EVs must meet, we’ve broken them down below:
Qualifying new EVs must meet manufacturing and geographic requirements
To qualify for the 30D tax incentive, a new EV must meet the following requirements:
Have a battery capacity of at least 7 kilowatt hours
Be rechargeable using an external source of electricity
Weigh less than 14,000 pounds
Be made by a qualified manufacturer and purchased new
Have final assembly in North America
EVs also have to meet battery and minerals sourcing requirements
New EVs must meet federal requirements for battery components and critical minerals to qualify for this EV incentive.
If your new EV meets some or all of these requirements, you’ll be eligible to receive:
$3,750 if the vehicle meets the critical minerals requirement only
$3,750 if the vehicle meets the battery components requirement only
$7,500 if the vehicle meets both
It’s important to ask your dealership which incentive level your potential new vehicle may qualify for.
You can learn more about these requirements here.
Discover other incentives with the incentives calculator!
There are other incentives that you may qualify for. Our incentive calculator will show you a personalized list of incentives.
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