Overview

• The IRS now treats a vehicle as acquired when a buyer signs a written binding contract and makes a payment, including a nominal down payment or trade-in, by September 30, 2025.
• Eligible contracts allow delivery after the deadline while preserving up to $7,500 at point of sale, and dealers must provide a time-of-sale report at possession or within three days.
• Dealers have intensified discounts on leases and financing to accelerate EV sales before the federal credit expires.
• Industry analysis indicates Tesla could benefit because orders locked in by the deadline may be delivered in the fourth quarter.
• California leaders have signaled possible state incentives after the federal credit ends, and forecasts warn EV adoption could slow without new support.