EV Federal Tax Credit

As sales of electric vehicles continue to grow in 2025, many new and prospective customers have questions about qualifying for a federal tax credit on EVs. Whether your vehicle qualifies or not is a simple yes or no question, but the amount you may qualify for varies by household due to a number of different factors. Luckily, we have compiled everything you need to know about tax credits for your new or current electric vehicle into one place.

If you’re thinking about buying or leasing an EV this month to secure the $7,500 federal tax credit, head to PlugStar.com, because it has everything you need.

California has proposed offering $7,500 state EV tax rebates to residents if Trump kills the federal EV tax credit, Governor Gavin Newsom (D-CA) announced today.

January 1, 2023, kicked off a fresh start of new tax credits for vehicles, both new and used. Since then, much of the dust has settled on the Capitol as it continues to implement qualifying terms for tax credits, continuously shifting what used EVs do and do not qualify. Here’s the latest list.

The US Treasury Department released updated guidance on EV charger tax credit eligibility for individuals and businesses – we’re reposting this story because it’s tax season.

After temporarily losing availability for federal tax credits in early January, Cadillac has announced the LYRIQ is once again eligible for the total amount of up to $7,500. Additionally, some previously ineligible LYRIQs will receive a purchase incentive from Cadillac directly.

Two years after pivoting its business strategy toward the development of commercial EVs, Bollinger Motors has earned IRS approval for federal tax credits under the Inflation Reduction Act, offering fleet customers potential tax credits up to 40,000 per vehicle.

The US government has released guidance that will make it harder for EVs to qualify for the full $7,500 tax credit if their batteries contain Chinese components or minerals.

The Biden administration is expected to announce on Friday what will disqualify EVs from eligibility for the $7,500 subsidy. However, the government is reportedly discussing granting automakers a temporary reprieve from the proposed restrictions on EVs containing battery parts or materials coming from China. 

The IRS released new guidance on the EV tax credit today, and the changes mean that starting next year, low- and middle-income buyers will be able to get the full $7,500 credit even if they don’t have enough tax liability.

Colorado is trailblazing with a new law that ramps up impressive EV state tax credits for both purchases and leases.

VW has become the first non-US automaker that qualifies for the full $7,500 US federal EV tax credit.

German automaker Volkswagen Group is looking to more than double its current share of the US market by prioritizing EV production in North America. By adhering to new terms laid out in the Biden Administration’s Inflation Reduction Act, Volkswagen intends to deliver at least 25 all-electric models over the next seven years that will qualify for the entire $7,500 federal tax credit.

Last week, the IRS updated the EV tax credit with new battery sourcing requirements set to go into place on April 17, with the effect of lowering purchase credit amounts for many new EVs.

But since the law defines individual and commercial credits differently, those requirements – along with MSRP and income requirements – can be bypassed on consumer-leased vehicles.

The US Treasury Department today announced its expected EV tax credit guidance on the battery component and critical mineral sourcing requirements of the Inflation Reduction Act, changing the availability of EV tax credits in the US, with the net effect of reducing tax credit amounts for many vehicles purchased on April 18 or later.

Update: some manufacturers have issued statements about which cars will and won’t qualify for the full credit, we will append updates the end of the post below as we get more information.

The United States and Japan have struck a trade deal for battery minerals, according to Reuters. This deal could potentially allow Japanese electric cars greater access to US EV tax credits in the Inflation Reduction Act.

German automaker and VW Group subsidiary Audi is flirting with the idea of implementing EV production on US soil, so its vehicles can once again qualify for federal tax credits under new terms outlined in the Inflation Reduction Act. Audi CEO Markus Duesmann recently shared a couple of possibilities Audi is considering in a potential move to the states.

In short, Joe Manchin opposes EV adoption. Straight up. In his latest obstruction against electric vehicles and limiting carbon emissions, the Democratic Senator representing the nation’s second-largest supplier of coal has introduced a new bill that immediately calls for strict enforcement of revised terms for EV tax credits laid out in last year’s Inflation Reduction Act – many of which Manchin wrote himself. We won’t disagree that the government needs guidance to enable these credits, but the senator’s bill is as promising as a future in which we continue relying on fossil fuels.

The US Treasury has released new guidelines on the electric vehicle tax credit in the Inflation Reduction Act, which seem to suggest that leased vehicles can qualify for the EV tax credit even if they were assembled outside of North America, Reuters reports.

The Chevy Bolt is already a great enough deal to get our Electrek Vehicle of the Year award, but after the US Treasury delayed its guidance on battery sourcing requirements, that deal might be even better – but only for the next couple of months.

Update: Treasury finally released its battery guidance, but now that everything has shaken out, it looks like the Chevy Bolt still qualifies for the full $7,500 credit. So the Bolt is still a screaming deal, as long as you can find one.

The United States Treasury department announced it will delay its guidance in regard to the sourcing requirements for battery materials in order for EVs to qualify for federal tax credits. Beginning January 1, 2023, a slew of new requirements will still take effect, but the lack of battery guidelines could offer a brief window in 2023 where electric vehicle purchases that may not fit the pending battery sourcing requirements still qualify for some level of tax credits.