What Changes Have Been Made to the Federal EV Tax Credit and the Home Charger Incentive?
Federal tax incentives designed to support electric vehicle adoption are entering a new phase. The Clean Vehicle Credit program, which provides up to $7,500 in federal tax savings, is set to expire on September 30, 2025, unless legislative action extends it. Separately, the home EV charger installation credit will end on June 30, 2026. If you're considering purchasing an electric vehicle or installing a charging system at home, now is the time to learn how these changes may affect your plans.
How Much Can I Potentially Receive Through the EV Tax Credit and What Determines That Amount?
The total value of the federal EV tax credit can reach $7,500, but eligibility depends on specific vehicle requirements. The credit is split into two equal portions:
- $3,750 is available if the vehicle meets the critical mineral sourcing criteria
- $3,750 is awarded if the battery components are sourced and manufactured in qualifying locations
If your chosen vehicle meets only one of these criteria, you may still receive a partial credit of $3,750. Vehicles that meet neither requirement do not qualify for the credit.
What Are the Key Requirements for a Vehicle to Be Eligible for the EV Tax Credit?
Several criteria must be met for an electric vehicle to qualify for federal tax benefits. To be eligible, the vehicle must:
- New at the time of purchase
- Contain a battery with at least 7 kilowatt-hours of capacity
- Weigh less than 14,000 pounds
- Undergo final assembly in North America
- Be produced by a qualified manufacturer
There are also MSRP caps to consider:
- A limit of $80,000 for vans, SUVs, and pickup trucks
- A limit of $55,000 for all other vehicles
Additionally, sellers must submit buyer and transaction details to the IRS in order to confirm qualification for the credit.
When Are These Federal EV Incentives Scheduled to Expire, and Can That Change?
As it stands, the Clean Vehicle Credit will sunset on September 30, 2025, unless it is extended by Congress. The home EV charger installation credit is scheduled to expire on June 30, 2026. These timelines are important to keep in mind, particularly if you're considering an EV purchase in the next year. Legislative changes could impact these dates, but there are no guarantees, so it’s wise to plan ahead.
What Steps Should I Take If I’m Thinking About Buying an Electric Vehicle Soon?
If you’re in the market for an electric vehicle, start by verifying which models are eligible for federal credits. You can consult the official list of qualifying vehicles on the IRS website or reach out to our team at Acura of Peoria. Understanding which EVs qualify and acting before the expiration dates ensures you make the most of available incentives.
How Can Acura of Peoria Assist Me With Understanding and Taking Advantage of These Incentives?
At Acura of Peoria, we’re committed to helping our customers make informed decisions. Whether you're browsing Acura’s growing line of electric and hybrid options or just beginning your research, our team is ready to assist with insight on tax credits, vehicle eligibility, and charging equipment. We’ll help you navigate the process so you can focus on choosing the right vehicle.
How Do I Get in Touch With Acura of Peoria to Learn More?
If you have questions about EV tax incentives, qualifying vehicles, or available charging solutions, contact Acura of Peoria today. Our experienced staff is here to guide you through the details and ensure you’re equipped with the information you need to move forward confidently.
