Overview

• Congress ended the $7,500 new and $4,000 used EV credits in a July tax-and-spending bill signed by President Donald Trump, making Sept. 30 the final day to qualify.
• Under the IRS rule, a written binding contract and payment by Sept. 30 preserves eligibility to claim the credit when the vehicle is placed in service even if delivery occurs later.
• Eligibility still hinges on income caps and vehicle criteria including North American final assembly, battery sourcing requirements, a battery of at least 7 kWh, and price limits that vary by vehicle type.
• Automakers and dealers are stacking incentives with cash rebates and low- or zero-percent financing, and many leases pass through the full $7,500 even on models that do not otherwise qualify.
• EV sales jumped in July to the second-highest monthly total on record, analysts expect strong August and September results followed by a potential slowdown, and at least one brand—Lucid—says it will honor a $7,500 benefit on its Gravity SUV into year-end.