The Calls Are Pouring In
Lately, our phones have been ringing nonstop: customers eager to jump on the “used EV tax credit” before it disappears this month. But most don’t realize how it really works—or who even qualifies.
If this sounds like you, you’re not alone. The clock is ticking, and understanding this credit could save you up to $4,000 on a used electric vehicle. Let’s demystify it—before it’s gone for good.
What’s Happening — The Deadline Is Here
Under the Inflation Reduction Act, federal tax credits for both new and used electric vehicles expire on September 30, 2025. That means after this month, no more credits—not for new cars, not for used ones.
The Used EV Credit — What You Get (and Don’t)
If you act before September 30, you may be eligible for a “Used Clean Vehicle Credit” worth:
- 30% of the purchase price, up to $4,000, whichever is lower.
Who Qualifies — Buyer Requirements
To be eligible, the buyer must:
- Be an individual purchasing for personal use—not resale.
- Not be the original owner.
- Not be claimed as a dependent.
- Not have claimed another used clean vehicle credit in the past 3 years.
- Have a modified adjusted gross income (MAGI) that does not exceed:
- $150,000 (married filing jointly or surviving spouse)
- $112,500 (head of household)
- $75,000 (other filers)
Who Qualifies — Vehicle Requirements
The vehicle must meet all the following:
- Purchased from a licensed dealer (not private sale).
- Sale price must be $25,000 or less, including dealer fees not required by law.
- Model year at least 2 years older than the current year (e.g., buying in 2025 means the car must be 2023 or older).
- Have a battery capacity of at least 7 kWh and a gross vehicle weight rating under 14,000 lbs.
- Dealer must provide a “time-of-sale report” to both you and the IRS within 3 days of sale. This ensures the vehicle is eligible and the credit is properly claimed.
What Buyers Miss — Key Caveats
- It’s a one-time credit — you can only claim it once every 3 years.
- Non-refundable — you can’t get more than your tax liability. If you don’t owe enough, you lose the unused portion.
- Dealer must register the sale properly. If not, the vehicle isn’t eligible, and you lose the credit.
- Binding contract matters — if you sign before Sept. 30, you’re in, even if delivery happens later.
Quick Q&A Snapshot
| Question | Answer |
|---|---|
| How much is the credit? | Up to $4,000 or 30% of price (whichever is lower) |
| Deadline to buy? | By September 30, 2025 (delivery can come slightly after) |
| Buyer eligibility? | Must meet income limits, not be original owner or dependent, etc. |
| Vehicle eligibility? | Dealer sale ≤ $25k, 2+ years old, 7 kWh+ battery, <14,000 lbs, etc. |
| Must seller do anything? | Yes—time-of-sale report to you and IRS within 3 days |
Why This Matters Now
The surge in phone inquiries isn’t surprising. With significant savings at stake, shoppers are motivated—but many simply don’t know the detailed rules.
Without properly structured purchases, buyers may miss out entirely—even if they think they qualify.
What You Should Do
- Act now. September is your final chance.
- When you find a used EV—or PHEV—check upfront whether it meets price, age, battery, and weight criteria.
- Confirm the dealer will file the time-of-sale report for IRS eligibility.
- Upload your deal to ClearBuy—we’ll audit eligibility and spot potential red flags before you sign.
Final Word
Used EVs offer fantastic value and environmental upside—but only if you know how the tax credit works and move fast. The window closes September 30, 2025—and with it, up to $4,000 in savings could vanish.
Let’s make sure you don’t leave money on the table.