Clean Vehicle Tax Credits: Key Updates You Need to Know Before 2026

Introduction

If you’re planning to purchase an electric or clean vehicle, recent updates to U.S. tax credits could significantly impact your decision. The New Clean Vehicle Credit, Previously-Owned Clean Vehicle Credit, and Qualified Commercial Clean Vehicle Credit are changing — and deadlines matter. Here’s everything you need to know to stay eligible and maximize your savings.

Important Deadline: September 30, 2025

• Clean vehicle credits are not available for vehicles acquired after September 30, 2025.
• To qualify, your vehicle must be acquired on or before September 30, 2025, and placed in service (meaning you take possession) by that date.
• Proof of acquisition can include a binding written contract and a payment made on or before the deadline.

Buying a New Vehicle

• The New Clean Vehicle Credit (Section 30D) applies only to vehicles acquired on or before September 30, 2025.
• Check whether your chosen model meets IRS requirements for eligibility.
• Credits for new vehicles were updated on January 1, 2023, so rules differ depending on whether you purchased in 2022 or earlier versus 2023 onward.

Buying a Used Vehicle

• The Previously-Owned Clean Vehicle Credit is available only for vehicles acquired on or before September 30, 2025.
• This credit applies to individual buyers only (not businesses).
• Eligibility depends on the vehicle’s make, model, and purchase date.

Business Vehicle Purchases

• Businesses can claim credits for clean vehicles acquired before the deadline.

• Rules also changed on January 1, 2023, so check whether your purchase was made in 2022 or earlier or in 2023.

Seller, Dealer, and Manufacturer Requirements

• Sellers must provide buyers with documentation about the vehicle’s qualifications.
• Dealers must register online and report the same information to the IRS.
• If sellers fail to comply, the buyer’s vehicle will not be eligible for the credit.
• Manufacturers must also meet IRS reporting requirements to support consumer eligibility.

EV Charging Credit

• Installing an electric vehicle charger at home can qualify for the Alternative Fuel Vehicle Refueling Property Tax Credit.
• Eligible equipment placed in service before July 1, 2026 may reduce installation costs and even increase property value.

Key Takeaways

1. Deadline matters: Acquire your vehicle by September 30, 2025.
2. Documentation is critical: Ensure your dealer provides IRS‑required information.
3. Credits vary by purchase date: Rules differ for vehicles bought in 2022, 2023, or later.
4. Extra savings: Consider installing a home EV charger before July 1, 2026.

For personalized guidance on clean vehicle tax credits and related incentives, TAXtical LLC is here to help. If you have questions or need expert consultation, don’t hesitate to reach out to our team for professional support.
 

Clean Vehicle Tax Credit 2025

New Clean Vehicle Credit deadline

Previously-Owned Clean Vehicle Credit eligibility

EV charger tax credit

IRS clean vehicle requirements