To qualify for the up to $4,000 used EV tax credit (IRS Section 25E), you must be an individual purchasing a qualified used electric vehicle (EV) or fuel cell vehicle (FCV) from a dealer for $25,000 or less, with a model year at least 2 years older than the current year. Buyers must meet specific income caps—$75,000 for single, $112,500 for head of household, or $150,000 for joint filers—and cannot be a dependent.
For vehicles acquired on or before Sept. 30, 2025, if you buy a qualified used electric vehicle (EV) or fuel cell vehicle (FCV) from a licensed dealer for $25,000 or less, you may be eligible for a used clean vehicle tax credit. The credit equals 30% of the sale price up to a maximum credit of $4,000.
Be registered as new in California. Vehicles may not be purchased, leased, or delivered out of state. Purchases/leases must be made via a California purchase or lease contract. Vehicles ordered online and delivered outside of California are not eligible.
Who Qualifies for a Used EV Tax Credit? Buyers must have a modified adjusted gross income (AGI) below $150,000 for joint filers, $112,500 for a head of household, and $75,000 for an individual—lower than the income limits for buyers of new EVs.
For used clean vehicle purchases, your modified adjusted gross income for either the current year or prior year must be: $150,000 or less, if you file taxes jointly with your spouse or are a surviving spouse. $112,500 or less, if you file taxes as the head of a household. $75,000 or less, for other filers.
Individuals may not claim more than one pre-owned vehicle tax credit in a three-year period. For more information about claiming the credit, see Internal Revenue Service (IRS) Used Vehicle Credit website and Form 8936, which is available on the IRS Forms and Publications website, and the final rule.
Single and married filing separately: $150,000. Head of household: $225,000. Married filing jointly: $300,000.
You can claim 'enhanced capital allowances' (a type of 100% first-year allowance) for the following equipment, which must be new and unused: electric cars and cars with zero CO2 emissions.
Federal electric vehicle (EV) opens in same window tax credits are officially coming to an end. Congress has passed legislation that terminates both the $7,500 tax credit for new EVs and the $4,000 credit for used EVs on September 30, 2025.
E.V.s tend to be pricier than comparable gas cars, but they have lower maintenance costs. And charging with electricity is typically cheaper than stopping at the gas pump. So an E.V. might save you money over time — even without the subsidies that the U.S. government used to offer.
Consider the total cost of ownership, including fuel and maintenance savings, when determining the vehicle's value. Research the EV's battery health and confirm the remaining warranty coverage before buying a used electric car. Determine your daily range needs and pay attention to the vehicle's charging rate.
The 100% Cleaner Vehicle Discount has now ended. From 2 January 2026, A new Cleaner Vehicle Discount is available for electric cars, vans, HGVs and quadricycles on Auto Pay, with: 25% discount for electric cars. 50% discount for electric vans, HGVs, and quadricycles.
No. All pre-owned Tesla vehicle pricing is non-negotiable. What Autopilot technology features come with my pre-owned vehicle? Once you have selected a pre-owned vehicle from our inventory, navigate to the bottom and select 'Show Pricing Details' to see what comes with your pre-owned vehicle.
To qualify for a tax credit of up to $7,500, a new EV or an eligible plug-in hybrid electric vehicle (PHEV) must have met certain rules: A vehicle's MSRP must not have exceeded certain limits, so pricey EVs like the GMC Hummer EV, Lucid Air, and Tesla Model S didn't qualify.
The sweeping tax and spending law passed by Trump and congressional Republicans this year canceled a federal rebate of up to $7,500 for the purchase of electric vehicles, enacted by Democrats under former President Joe Biden. That incentive, which applied to domestically manufactured EVs, expired Sept.
Such elections could be for two Clean Vehicle Credits or one Clean Vehicle Credit and one Previously Owned Clean Vehicle Credit, but cannot be for two Previously Owned Clean Vehicle Credits. Accordingly, spouses may each transfer no more than two Clean Vehicle Credits each tax year.
The new tax bill will end the $7500 tax credit on new EVs and the $4000 tax credit on used EVs.
To qualify for the credit, you must enter into a binding written purchase agreement and make a car payment on or before September 30, 2025. You should claim the credit on your 2025 tax return filed in 2026. The EV tax credit is non-refundable, so you won't get a refund for the unused portion of it.
Cars qualifying for the "Big Beautiful Bill" (OBBB) auto loan interest deduction must be new, U.S.-assembled vehicles (cars, SUVs, vans, trucks, motorcycles under 14,000 lbs) purchased with a loan after 2024 for personal use, excluding leases and business vehicles, with the deduction itself subject to income limits and expiring after 2028. Key factors are U.S. final assembly, the vehicle type (under 14k lbs), and personal use, not commercial, with specific income thresholds for buyers.
Expect a very different landscape. Many manufacturers are already planning their post-credit strategies—which, especially with EV sales volumes already down earlier this year, will likely include price cuts, according to Ivan Drury, director of insights at car buying site Edmunds.