EV Tax Credit Estimator

How EV Tax Credits Work

Federal EV tax credits reduce your federal income tax liability dollar-for-dollar. A $4,000 credit means $4,000 less in taxes owed. These are nonrefundable credits, meaning they can reduce your tax bill to zero but won't generate a refund beyond that. Credits are claimed when you file your annual tax return using IRS Form 8936.

Current Federal Credit Status

The One Big Beautiful Bill Act (P.L. 119-21) ended three federal credits. Section 30D (new vehicles, up to $7,500) and Section 25E (used vehicles, 30% up to $4,000) ended for vehicles acquired after September 30, 2025. Section 30C (home charger installation, 30% up to $1,000) ended for property placed in service after June 30, 2026. If you are buying a vehicle or installing a charger now, the federal credit is $0. Vehicles acquired on or before the cutoff may still be claimed on that year's return with Form 8936; confirm details with IRS.gov or a tax professional.

State Incentives Vary Widely

• California's statewide Clean Vehicle Rebate Project (CVRP) closed to new applications on November 8, 2023. Income-qualified Californians can still look at Clean Cars 4 All and their electric utility's own EV rebates.
• Colorado offers a state income tax credit for new EVs; the amount has stepped down over time, so check the Colorado Energy Office for the current figure.
• Some states (Connecticut, Delaware, Maine) offer point-of-sale rebates that reduce the purchase price directly, rather than tax credits claimed later.
• State programs change frequently. Check your state's energy office website for the most current information before purchasing.