There is no federal electric vehicle tax credit for cars bought in 2026. The $7,500 credit for new EVs and the $4,000 credit for used EVs ended for vehicles acquired after September 30, 2025, and the home charger credit ended on June 30, 2026. What is left for drivers is a smaller set of tools: a federal deduction for car loan interest, California’s new MyFirstEV rebate, and income-based state and local programs.
Here is what changed, who can still claim something on a 2026 tax return, and where the remaining money is, as of late October 2026.
What happened to the $7,500 federal EV credit
The federal budget law signed on July 4, 2025 (Public Law 119-21) set early end dates for several clean energy credits. The IRS explains the cutoffs in its official FAQ on the changes.
| Credit | What it was worth | When it ended |
|---|---|---|
| New clean vehicle credit (Section 30D) | Up to $7,500 | Vehicles acquired after September 30, 2025 |
| Used clean vehicle credit (Section 25E) | 30% of the price, up to $4,000 | Vehicles acquired after September 30, 2025 |
| Commercial clean vehicle credit (Section 45W) | Up to $7,500 for light vehicles, $40,000 for heavy ones | Vehicles acquired after September 30, 2025 |
| Charger credit (Section 30C) | 30% of cost, up to $1,000 per item for homes | Property placed in service after June 30, 2026 |
The commercial credit was the one many leasing companies used to pass a discount to lease customers. So the “lease loophole” closed at the same time as the purchase credits.
Can anyone still claim the EV credit in 2026?
A small group can. The IRS treats a car as “acquired” on the date you signed a written binding contract and made a payment. Even a small down payment or a trade-in counted.
If you did both by September 30, 2025, you keep the credit, even if you took delivery later. For example, a buyer who signed and paid a deposit in September 2025 but picked up the car in February 2026 claims the credit on the 2026 tax return.
Those buyers file Form 8936 with the vehicle identification number. The dealer also had to send a time-of-sale report to the IRS. Without that report, the claim can be rejected, so ask the dealer for a copy if you are unsure.
Anyone who signed a contract on October 1, 2025, or later gets nothing from the federal EV credits. The IRS clean vehicle credit page lists the same rule.
The home charger credit ended in June 2026
The charger credit (Section 30C) lasted nine months longer. It covered 30% of the cost of a home charger, up to $1,000 per item. However, it applied only in eligible census tracts, meaning low-income or non-urban areas.
The cutoff was June 30, 2026, based on the date the charger was placed in service. If yours was installed and working by then, and your address is in an eligible tract, you claim it on Form 8911 with your 2026 return. The IRS charger credit page links to the census tract lists.
Chargers installed after June 30 do not qualify. Still, many utilities run their own charger rebates, which are covered below. Charging technology keeps changing too, from faster home units to wireless charging pads that have been in development for years.
The federal car loan interest deduction
One new federal break does help some EV buyers, although it is not limited to EVs. For tax years 2025 through 2028, you can deduct up to $10,000 a year of interest on a loan for a new personal vehicle.
The rules, from the IRS fact sheet on the new deductions, are strict:
- The car must be new, and its final assembly must happen in the United States.
- The loan must be taken out after December 31, 2024, and secured by the vehicle.
- The vehicle must be for personal use and weigh under 14,000 pounds.
- Leases do not qualify.
- The deduction phases out above $100,000 of modified adjusted gross income, or $200,000 for joint filers.
You can claim it whether or not you itemize, on Schedule 1-A. You must also list the VIN on your return. To check where a car was assembled, look at the window sticker or run the VIN through the NHTSA decoder.
The value is much smaller than the old credit. A deduction lowers taxable income, not the tax itself. For instance, someone in the 22% bracket who pays $3,000 in loan interest saves about $660 in federal tax.
California’s MyFirstEV rebate
California launched a new state incentive on August 3, 2026. The California Air Resources Board FAQ sets out the terms.
- Amount: $3,500 off a new zero-emission vehicle, or $1,750 off a used one. The state and the automaker each pay half.
- Who qualifies: California residents buying or leasing their first zero-emission vehicle. There is no income limit. Anyone who has owned an EV before, even in another state, is not eligible.
- Which cars: Battery electric and hydrogen fuel cell vehicles only. Plug-in hybrids do not count.
- Price caps: New cars must have an MSRP of $50,000 or less, although the cap does not apply to automakers headquartered in California. Used cars must cost $25,000 or less, be at least two model years old and be sold as certified pre-owned through the manufacturer.
- How you get it: The discount comes off the price at the point of sale. There is no separate application.
The program has a one-time budget of $135.5 million, paid out first come, first served. Not every automaker takes part, and timing varies by dealer. Participating manufacturers list eligible models on their own websites, so check before you shop. As of mid-October 2026, the state said nearly 12,000 drivers had used the rebate.
Other California programs for lower-income drivers
Two older state programs still run, mainly for households with lower incomes. They can be combined with MyFirstEV.
- Clean Cars 4 All. You scrap an older gas car and get a grant toward a new or used EV, plug-in hybrid or transit pass. Income limits apply, and availability depends on your regional air district. In Los Angeles County, it runs through the South Coast air district.
- Driving Clean Assistance Program. This statewide program offers grants and low-interest financing for income-qualified buyers, including where no local Clean Cars 4 All program exists.
Amounts and open or closed status change often. The state’s DriveClean incentive search lets you enter a ZIP code and see current programs, including utility rebates.
Utilities such as the Los Angeles Department of Water and Power and Southern California Edison have offered rebates for home chargers and, at times, for used EVs. Their terms change each year, so confirm on the utility’s site before you buy. Also note that California’s old Clean Vehicle Rebate Project closed to new applications in November 2023.
How the math changes without the federal credit
For most buyers, the upfront price of an EV went up by thousands of dollars compared with mid-2025. That shifts the decision toward total cost of ownership: charging versus gas, maintenance, insurance and resale value.
A first-time buyer in California who gets MyFirstEV recovers $3,500, which is about half of the old federal credit. Someone with a US-assembled EV and a loan may also gain a few hundred dollars a year from the interest deduction. Our look at electric vehicle pros and cons covers the running costs in more detail.
Many households that consider an EV also look at rooftop solar for cheaper charging. That federal credit ended too, for systems installed after 2025, as our guide to the solar tax credit explains. For more on energy and technology, see our science and technology guides.
This article is general information, not tax or financial advice. Check your own case with a tax professional or the IRS.
Frequently asked questions
Is there an electric vehicles tax credit in 2026?
Not for new purchases. The federal new and used EV credits ended for vehicles acquired after September 30, 2025. Only buyers who signed a contract and paid by that date can still claim it.
Can I still get a tax credit for leasing an EV?
No federal one. The commercial credit that leasing companies used also ended on September 30, 2025. However, California’s MyFirstEV discount applies to leases for first-time EV drivers.
Does the car loan interest deduction apply to EVs?
It applies to any new car, gas or electric, if final assembly happened in the US and the other rules are met. The plant is listed on the window sticker and in the VIN.
Can I claim the home charger credit for 2026?
Only if the charger was in service by June 30, 2026, and your home is in an eligible census tract. You file Form 8911 with your 2026 return.
Have a question about this topic? Ask in the comments below. Our editors read every comment and answer questions here, and we add useful answers to the guide.
Sources
- irs.gov/newsroom/faqs-for-modification-of-sections-25c-25d-25e-3…
- irs.gov/clean-vehicle-tax-credits
- irs.gov/credits-deductions/alternative-fuel-vehicle-refueling-pr…
- irs.gov/newsroom/one-big-beautiful-bill-act-tax-deductions-for-w…
- ww2.arb.ca.gov/resources/fact-sheets/myfirstev-frequently-asked-questions
- caclimateinvestments.ca.gov/myfirstev
- driveclean.ca.gov/search-incentives
- energy.ca.gov/news/2026-10/california-zev-sales-maintain-strong-perfor…