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yesterday

IRS Clarifies EV Credit Cutoff, Letting Buyers Lock In by Sept. 30 Without Immediate Delivery

The tweak injects certainty for shoppers racing to secure the expiring subsidy.

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Automakers have more time to deliver BEVs that qualify for the terminated tax credit.
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Overview

  • New IRS guidance says a written binding contract plus a payment on or before Sept. 30 qualifies buyers for the credit, with a dealer time‑of‑sale report provided at possession or within three days.
  • The federal incentives worth up to $7,500 for new EVs and $4,000 for used models are still set to end on Sept. 30 under President Donald Trump’s One, Big, Beautiful Bill Act.
  • Automakers and dealers can now accept qualifying orders for vehicles delivering in the fourth quarter, with industry reporting indicating Tesla and General Motors stand to benefit most.
  • U.S. inventory for popular models is tightening, including reports of scarce Tesla Model Y stock in regions such as Austin and Los Angeles, and a Tesla sales executive said a U.S. Model Y price increase is being considered.
  • Analysts warn of a likely sales downturn once credits lapse, with one academic estimate projecting roughly a 27% drop in U.S. BEV registrations in 2026 compared with 2025.