🚗 Federal EV Tax Credits: What You Must Know
Deadline: September 30, 2025
President Trump’s “One Big Beautiful Bill Act,” signed in July 2025, eliminates the federal EV tax credits for both new and used electric vehicles on vehicles acquired after September 30, 2025. This change accelerates the phase-out from the original 2032 sunset date.
How Much You Could Still Save
- Up to $7,500 for qualifying new EVs
- Up to $4,000 for used EVs, or 30% of the purchase price (whichever is less)
Eligibility depends on:
- Your income
- Vehicle price
- VIN verification
- Sourcing and dealer qualifications
Why This Matters
This update is years ahead of the original sunset date, and buyers are rushing to lock in the tax break. Industry leaders report a spike in demand as automakers like Tesla, Ford, and others offer aggressive deals to move eligible EVs before the cutoff.
What This Means for You
- Deadline: To qualify, the vehicle must be delivered (not just ordered) by September 30, 2025
- Eligibility rules still apply, including:
- Income thresholds
- MSRP caps ($55K for cars, $80K for SUVs/trucks)
- North American final assembly
- Battery sourcing and dealer participation
- 🚫 No credits at all will be available after October 1, 2025 — regardless of buyer income, vehicle type, or manufacturer
What to Do Now
- Confirm if you qualify based on income and vehicle selection
- Review Form 8936 and confirm the dealer provides IRS-compliant documentation
- Make your purchase early in September to allow time for delivery
- Integrate the tax credit into your 2025 tax plan to avoid surprises
Smart Buying = Smart Tax Planning
For clients like YouTubers, Amazon sellers, Shopify store owners, TikTokers, healthcare professionals, and local business owners, this is more than a car purchase — it’s one of your last chances to save up to $7,500 in tax credits through 2025.
At Velin & Associates, Inc., we:
- Assess your tax credit eligibility
- Coordinate with your EV dealership to ensure IRS compliance
- Help you integrate the credit into your broader 2025 tax strategy
- Prevent costly mistakes in reporting or documentation
Quick Summary:
| Aspect | Details |
| Deadline | Last day to take delivery: Sep 30, 2025 |
| New EVs | Up to $7,500 federal tax credit |
| Used EVs | Up to $4,000 tax credit |
| After 9/30 | No EV tax credits available |
Ready to Act? Don’t Miss This Tax Window
Let our expert team guide you through eligibility, paperwork, and tax reporting — and help you take full advantage of this last major federal clean vehicle credit.
Velin & Associates, Inc.
8159 Santa Monica Blvd STE 198/200
West Hollywood, CA 90046
📞 323-902-1000
📧 dmitriy@losangelescpa.org
🌐 www.losangelescpa.org
Our firm provides the information in this e-newsletter for general guidance only, and does not constitute the provision of legal advice, tax advice, accounting services, investment advice, or professional consulting of any kind. The information provided herein should not be used as a substitute for consultation with professional tax, accounting, legal, or other competent advisers. Before making any decision or taking any action, you should consult a professional adviser who has been provided with all pertinent facts relevant to your particular situation. Tax articles in this e-newsletter are not intended to be used, and cannot be used by any taxpayer, for the purpose of avoiding accuracy-related penalties that may be imposed on the taxpayer. The information is provided "as is," with no assurance or guarantee of completeness, accuracy, or timeliness of the information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.