General

Federal EV tax credit expiring soon

If you’ve been considering buying an electric vehicle, you might want to start shopping soon.  

The federal Clean Vehicle Tax Credit – which provides tax credits for the purchase of all-electric, plug-in hybrid and fuel cell electric vehicles – expires September 30. 

“Local auto dealers have some great inventory right now, but the EVs are going fast,” said Bridgett Petzoldt, a product manager in Product Development & Marketing at OPPD. “EV sales are on the rise nationally. In June we saw an increase of 26%, making it the second-highest month ever in total EV sales.” 

New vehicles are eligible for a federal tax credit up to $7,500 and used vehicles up to $4,000. Eligibility depends on several factors; see the Department of Energy’s website for a complete list of requirements for purchases of new or used vehicles. 

According to a recent update from the IRS, buyers must acquire their vehicle by having a written, binding contract in place and a payment made on or before September 30. A payment is defined as a nominal down payment or a vehicle trade-in. Buyers will be “entitled to claim the credit when they place the vehicle in service (namely, when they take possession of the vehicle), even if the vehicle is placed in service after September 30, 2025. Taxpayers should receive a time of sale report from the dealer at the time they take possession or within three days of taking possession of the vehicle.”

Need help deciding?

To learn more about EVs and whether they’re right for you, visit OPPD’s Electric Vehicles page, which contains a wealth of information about how EVs work, plus what you need to know about operating, charging and traveling in an EV. OPPD’s EV Calculator is a good place to start. It can help you determine – based on your driving habits, electricity use and other factors – whether an EV is the vehicle for you. 

And more information is on the way.  

“We’ll soon be launching a newsletter that will include EV tips as well as information about new programs and new public charging stations popping up in the metro,” Petzoldt said. “It’s a great way to stay informed, even if you’re not sure you’re ready to make the change.”