Vehicle
EV Tax Credit: How It Saves You Up to $4,000 (used EVs only) in 2026
The $7,500 new EV credit under IRC §30D was repealed effective 9/30/2025 under OBBBA (Public Law 119-21). Used clean vehicles may still qualify for up to $4,000 under IRC §25E. The used EV credit can be applied at the point of sale or claimed on your tax return. Income limits and vehicle price caps apply.
Who Qualifies
- MAGI below $150K (married) or $75K (single) for used EV credit
- Vehicle is at least 2 model years old
- Purchased from a licensed dealer for $25,000 or less
- Vehicle meets clean vehicle requirements
Who does NOT qualify
- New EV purchases after 9/30/2025 (credit expired)
- Income above the MAGI limits for used EV credit
- Vehicle purchased from a private party
- Vehicle price exceeds $25,000
How the Math Works
Used EV credit: lesser of $4,000 or 30% of purchase price. 30% of $22,000 = $6,600, capped at $4,000.
Direct $4,000 tax credit under §25E.
Legal Basis & IRC Citations
- IRC §25E: Used clean vehicle credit
- IRC §30D: Repealed for vehicles after 9/30/2025 under OBBBA
What to Tell Your CPA
“I'm considering purchasing a used EV for $[price]. My MAGI is $[amount]. Can you confirm I qualify for the used clean vehicle credit under §25E given the OBBBA changes?”
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Frequently Asked Questions
Is the $7,500 EV credit still available in 2026?
No. The $7,500 new EV credit under §30D was repealed effective 9/30/2025 under OBBBA. Only the used clean vehicle credit (up to $4,000) under §25E remains available.
What is the income limit for the used EV credit?
Used vehicles: $150K MAGI (married) or $75K (single). If you're above these limits, you may still qualify using prior-year AGI.
Which used vehicles qualify?
The vehicle must be at least 2 model years old, purchased from a licensed dealer for $25,000 or less, and meet clean vehicle requirements. Check fueleconomy.gov for eligible models.
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