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2h ago

IRS Eases Path to EV Tax Credits With Contract-and-Payment Rule Before Sept. 30

Buyers preserve eligibility now with claiming only after delivery when dealers submit a time-of-sale report.

Stock image/file photo: Sign on IRS headquarter building in Washington, DC.
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Overview

  • New IRS guidance treats a binding written contract plus a payment made on or before September 30, 2025, as vehicle acquisition for the new, used, and commercial EV credits.
  • The credit can be claimed only after the vehicle is delivered and the dealer files the required time-of-sale report, reversing the earlier delivery-by-deadline interpretation.
  • The One Big Beautiful Bill Act, signed in July, accelerates the end of eight clean‑energy incentives, with EV credits no longer available for vehicles acquired after September 30, 2025.
  • Home energy credits end for expenses after December 31, 2025, while EV charging and certain commercial building incentives phase out for property placed in service or begun after June 30, 2026.
  • Industry reports a rush of EV orders ahead of the cutoff, and California regulators have floated state-level credits that would depend on available funding.