If you’re considering buying or leasing an electric vehicle, now is the time to act.
Federal tax credits toward purchasing 22 qualifying new electric car and plug-in hybrid models will expire on Sept. 30. A tax credit allowing car dealers to pass along savings for EV car leases and a used EV tax credit also end on that day.
“With the (Inflation Reduction Act) tax credit set to expire at the end of September, urgency is likely to remain high,” said Stephanie Streaty, director of industry insights for Cox Automotive. She expects the credits will keep the EV market strong through September.
The list of qualifying cars includes several Tesla models, the Ford F-150 Lightning XLT pickup and the Chrysler Pacifica minivan. Notably, the Pacifica is the only PHEV on the list, and it can travel up to 32 electric-only miles before switching to its gas engine.
Credit: SPECIAL
Credit: SPECIAL
The Internal Revenue Service regularly updates the list of qualifying cars and includes some 2026 models.
Read on to find out which cars qualify and learn how to claim a tax credit before time runs out.
How much is the tax credit for EVs and PHEVs?
The Inflation Reduction Act tax credits are part of a federal program offering $7,500 to buyers of new EVs and $4,000 to used EV buyers. Used cars must be model year 2023 and older to qualify. Vehicles must meet battery sourcing rules, be assembled in North America, and cost $80,000 or less for SUVs, minivans, and trucks and $55,000 or less for sedans.
Many car dealerships, including those in Georgia, offer the tax credit instantly, or customers can apply it when filing their tax returns.
Tax credit details for new car buyers
If the new EV meets assembly and battery sourcing rules, you can transfer an instant tax credit to a participating dealership to lower your final purchase cost and obtain the $7,500 tax credit. However, you still must meet income limits (see chart below) and file the IRS Form 8936 reporting your eligibility and transfer. The IRS rules allow that buyers with binding contracts on Sept. 30 will still qualify for the tax credit, even if they don’t take possession of the car that day.
If you file taxes as a single person, the income limit is $150,000. The income threshold can climb to as high as $300,000 for a married couple filing jointly.
Tax credit details for used car buyers
If you’re looking to buy a used electric vehicle or plug-in hybrid and want to qualify for up to a $4,000 tax credit, these are the details.
The used EV or PHEV:
- Must be purchased from a dealer
- Must cost less than $25,000, including taxes and dealer fees
- Must be sold on or before Sept. 30 and be at least two model years old (2023 or older)
- Can only qualify if it has had one previous owner
The IRS said the credit equals 30% of the sale price up to a maximum credit of $4,000, and purchasers can only qualify for the tax credit once every three years. Since this credit began on Jan. 1, 2023, and expires on Sept. 30, it’s a one-time deal for buyers.
Credit: DWilson_PR
Credit: DWilson_PR
Buyers of used EVs expecting a tax credit must meet income qualifications. For single people, it’s $75,000, but the threshold can rise to as much as $150,000 for a married couple filing jointly.
Why are the tax credits ending?
The EV and PHEV tax credits on new and used cars expire early (not in 2032) because the federal government ended the program when President Donald Trump’s “big beautiful bill” passed in July. Vehicles delivered after Sept. 30 will not get the tax credit.
Complete list of new 2025-2026 EVs that qualify
- 2025 Acura ZDX
- 2025-2026 Cadillac Lyriq (Luxury and Sport)
- 2025-2026 Cadillac Optiq
- 2026 Cadillac Vistiq
- 2025-2026 Chevrolet Blazer EV (LT, RS and SS)
- 2025-2026 Chevrolet Equinox EV (LT and RS)
- 2025-2026 Chevrolet Silverado (LT)
- 2025 Chrysler Pacifica PHEV
- 2025 Ford F-150 Lightning (XLT, Flash and Lariat)
- 2026 Genesis Electrified GV70
- 2026 GMC Sierra EV
- 2025 Honda Prologue
- 2025 Hyundai Ioniq 5
- 2026 Hyundai Ioniq 9
- 2025 Jeep Wagoneer S
- 2025 Kia EV6
- 2026 Kia EV9
- 2025 Tesla Cybertruck (Dual or Single Motor)
- 2025 Tesla Model 3
- 2025 Tesla Model X All-wheel drive
- 2025-2026 Tesla Model Y (Long range AWD and Rear-wheel drive)
- 2025 Tesla Model Y Performance
Used EVs that often qualify for the tax credit
The Chevrolet Bolt EV and Bolt EUV, the Nissan Leaf, and certain models of the Hyundai Kona Electric are often available for purchase under $25,000.
Georgia-specific benefits ending soon
Several programs in Georgia are ending soon. Georgia Power offers up to a $200 rebate for purchasing and installing a Level 2 EV charger at home. This program expires on Dec. 31. Other utility providers, like Cobb EMC, Jackson EMC and Greystone, offer up to $250 rebates for home chargers. Check with your utility provider for specific details and guidelines.
Credit: Special for Cox Automotive by Guy Spangenberg
Credit: Special for Cox Automotive by Guy Spangenberg
Until the benefit expires at 11:59 p.m. on Sept. 29, alternative fuel vehicles with the special license plate can use the state’s High Occupancy Toll express lanes.
Looking ahead: EV market without tax credits
Federal tax credits contributed to the growth of EVs, which had a 10% share of vehicle sales last year. According to nonprofit research organization the International Council on Clean Transportation, the EV market blossomed from fewer than 20 models in 2020 to 130 last year.
Losing the federal tax credit and other state incentives will make it more expensive for consumers to buy an EV or PHEV. The cuts to the program come at a time when car prices are rising because of tariffs on imports, and consumers feel the pressure of higher interest rates on car loans. Cost-conscious consumers could look for more affordable options, likely gas-powered vehicles.
Renee DeGross Valdes is a veteran reporter and editor who writes about car advice for Kelley Blue Book and Autotrader. She previously worked for CNN and The Atlanta Journal-Constitution.
The Steering Column is a weekly consumer auto column from Cox Automotive. Cox Automotive and The Atlanta Journal-Constitution are owned by parent company, Atlanta-based Cox Enterprises.
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