2025 Clean Vehicle Tax Credit
The 2025 Clean Vehicle Tax Credit is $7,500.
Effective 2025-01-01Source: Credits for new clean vehicles purchased in 2023 or after (IRS)Verified 2026-09-01
Compared with 2024
Every figure on this page is unchanged from 2024.
| Item | 2024 | 2025 | Change |
|---|---|---|---|
| Maximum credit | $7,500 | $7,500 | +$0 (+0.0%) |
Who it applies to
The credit is available to individuals and their businesses. The buyer must buy the vehicle new and for their own use rather than for resale, and use it primarily in the United States. The vehicle must meet a battery capacity floor and a weight ceiling, be made by a qualified manufacturer, undergo final assembly in North America, meet the critical mineral and battery component requirements and stay under a manufacturer suggested retail price cap that differs for vans, sport utility vehicles and pickup trucks. Modified adjusted gross income limits apply and differ by filing status. For this year the acquisition date matters as much as any of that: a vehicle acquired after September 30, 2025 is outside the credit however well it qualifies otherwise.
What changed this year, and why
2025 is the last year of the New Clean Vehicle Credit. The maximum is unchanged from 2024: the IRS states that a buyer may qualify for a credit of up to $7,500 under Internal Revenue Code Section 30D for a new, qualified plug-in electric vehicle or fuel cell electric vehicle. What changed is the end date. The credit is not available for vehicles acquired after September 30, 2025, and a vehicle placed in service after that date qualifies only if it was acquired on or before it. There is no figure for the year after this one, because the credit no longer applies.
Common questions
- What is the clean vehicle tax credit for 2025?
- Up to $7,500, and only for vehicles acquired on or before September 30, 2025. The IRS states that a buyer may qualify for a credit of up to $7,500 under Internal Revenue Code Section 30D for a new, qualified plug-in electric vehicle or fuel cell electric vehicle, and separately that the credit is not available for vehicles acquired after that date.
- What happens if the vehicle was ordered before the cut-off but delivered afterwards?
- It can still qualify. The vehicle must be placed in service for the credit to be claimed, and a vehicle placed in service after September 30, 2025 is eligible only if it was acquired on or before that date. The IRS says acquisition can be demonstrated by entering into a binding written contract and making a payment on the vehicle on or before that date.
- Is there a clean vehicle tax credit for the year after 2025?
- No. The credit is not available for vehicles acquired after September 30, 2025, so no later year has an amount for it, and this site publishes no figure for a year in which the credit does not apply.
- When is a vehicle placed in service?
- When the buyer takes possession of it. That is the event that lets the credit be claimed, and it is separate from acquisition, which is what the cut-off date is measured against.
- How is the 2025 credit claimed?
- On Form 8936, Clean Vehicle Credits, filed with the tax return for the year the buyer takes delivery of the vehicle, with the vehicle identification number. The dealer should provide a paper copy of a time-of-sale report showing that the sale was reported to the IRS.
Every amount on this page is a published figure rather than yours. The What the vehicle costs after the credit takes the number you enter and works it out against them, showing which published figure it used.
The credit ends for vehicles acquired after September 30, 2025
The Clean Vehicle Tax Credit is no longer available for vehicles acquired after September 30, 2025. If you take possession of a vehicle after that date, you can still qualify as long as you acquired it on or before September 30, 2025. You can demonstrate acquisition by entering into a binding written contract and making a payment on the vehicle by that deadline. This rule applies to the federal credit administered by the IRS.
The New Clean Vehicle Credit is not available for vehicles acquired after Sept. 30, 2025.
Credits for new clean vehicles purchased in 2023 or after (IRS)
The income limits, and the two years you may choose between
To qualify for the 2025 Clean Vehicle Tax Credit, your modified adjusted gross income (AGI) must not exceed certain thresholds: $300,000 for married couples filing jointly or a surviving spouse, $225,000 for heads of households, and $150,000 for all other filers. You can use your modified AGI from either the year you take delivery of the vehicle or the year before, whichever results in the lower amount. If your modified AGI is below the threshold in at least one of those two years, you can claim the credit. The maximum credit available is $7,500. This flexibility allows taxpayers whose income fluctuates to still qualify even if they exceed the limit in one year.
In addition, your modified adjusted gross income (AGI) may not exceed: $300,000 for married couples filing jointly or a surviving spouse $225,000 for heads of households $150,000 for all other filers You can use your modified AGI from the year you take delivery of the vehicle or the year before, whichever is less. If your modified AGI is below the threshold in 1 of the 2 years, you can claim the credit.
Credits for new clean vehicles purchased in 2023 or after (IRS)
The sticker price ceiling the vehicle must stay under
The vehicle's manufacturer suggested retail price (MSRP) cannot exceed certain limits for the 2025 Clean Vehicle Tax Credit. For vans, sport utility vehicles, and pickup trucks, the MSRP cannot exceed $80,000. For all other vehicles, the MSRP cannot exceed $55,000. MSRP is defined as the retail price suggested by the manufacturer, including manufacturer-installed options, accessories, and trim, but excluding destination fees. It is important to note that this is not necessarily the price you actually pay. You can find your vehicle's MSRP along with other relevant information such as weight, battery capacity, and final assembly location on the vehicle's window sticker.
In addition, the vehicle's manufacturer suggested retail price (MSRP) can't exceed: $80,000 for vans, sport utility vehicles and pickup trucks $55,000 for other vehicles MSRP is the retail price of the automobile suggested by the manufacturer, including manufacturer installed options, accessories and trim but excluding destination fees. It isn't necessarily the price you pay.
Credits for new clean vehicles purchased in 2023 or after (IRS)
What the vehicle itself has to be
To qualify for the 2025 Clean Vehicle Tax Credit, the vehicle must meet all of the following requirements: it must have a battery capacity of at least 7 kilowatt hours, a gross vehicle weight rating of less than 14,000 pounds, be made by a qualified manufacturer, and undergo final assembly in North America. You must buy the vehicle new, and the seller must report required information to both you and the IRS when you take possession. Sellers are required to report your name and taxpayer identification number to the IRS for you to be eligible to claim the credit. The maximum credit available is $7,500. You can check whether a specific vehicle qualifies by visiting fueleconomy.gov.
To qualify, a vehicle must: Have a battery capacity of at least 7 kilowatt hours Have a gross vehicle weight rating of less than 14,000 pounds Be made by a qualified manufacturer Undergo final assembly in North America
Credits for new clean vehicles purchased in 2023 or after (IRS)
Why some vehicles get $3,750 and not $7,500
For the 2025 Clean Vehicle Tax Credit, the credit amount depends on whether the vehicle meets the critical mineral and battery component requirements. A vehicle that meets the critical minerals requirement only receives a credit of $3,750. A vehicle that meets the battery components requirement only also receives a credit of $3,750. A vehicle that meets both requirements receives the full credit of $7,500. A vehicle that does not meet either requirement is not eligible for any credit. You can check whether a specific vehicle qualifies by visiting fueleconomy.gov.
$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 A vehicle that doesn't meet either requirement will not be eligible for a credit.
Credits for new clean vehicles purchased in 2023 or after (IRS)
The credit cannot exceed the tax you owe
The 2025 Clean Vehicle Tax Credit is nonrefundable when you file your taxes, which means you cannot receive more on the credit than you owe in taxes for that year. If the credit amount exceeds your tax liability, the excess is lost. You cannot apply any unused credit to future tax years. This is an important consideration when planning your tax situation, as the maximum credit of $7,500 will only reduce your tax bill dollar-for-dollar up to the amount you owe. If you do not owe at least $7,500 in taxes, you will not receive the full benefit of the credit. This nonrefundable nature distinguishes it from refundable tax credits that can result in a refund even when no tax is owed.
If you do not transfer the credit, it is nonrefundable when you file your taxes, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years.
Credits for new clean vehicles purchased in 2023 or after (IRS)
How to claim it, and the report the dealer owes you
Taxpayers who purchase a qualified clean vehicle must file Form 8936, Clean Vehicle Credits, along with their federal income tax return for the year they take delivery of the vehicle. This filing requirement applies regardless of whether the buyer chose to transfer the credit to the dealer at the point of sale or is waiting to claim it when the return is filed. The return must include the vehicle's Vehicle Identification Number. In addition, the dealer is required to furnish a paper copy of a time-of-sale report to the buyer when the vehicle is taken into possession. The buyer must keep this report for their records because it serves as confirmation that the dealer electronically submitted the required report to the IRS on the purchase date. If the buyer does not receive this time-of-sale report from the dealer, the IRS provides a step-by-step guide to help resolve the issue before the credit is claimed. The maximum federal credit available for a qualifying vehicle is $7,500.
How to claim the credit To claim the credit, file Form 8936, Clean Vehicle Credits with your tax return. You will need to provide your vehicle's VIN. Get a time-of-sale report The dealer should give you a paper copy of a time-of-sale report when you take possession of the vehicle. Keep this copy for your records because it affirms that the dealer sent a report to the IRS on the purchase date.
Credits for new clean vehicles purchased in 2023 or after (IRS)
How each figure was verified
Each number below was read from a stored copy of the document named beside it, and checked to occur word for word in the quoted sentence. The digest is of that stored text.
Credits for new clean vehicles purchased in 2023 or after (IRS)
- Maximum credit
You may qualify for a credit up to $7,500 under Internal Revenue Code Section 30D if you buy a new, qualified plug-in EV or fuel cell electric vehicle (FCV).