The federal EV tax credit offers up to $7,500 off a new EV and $4,000 off a used EV in 2026. Thanks to the dealer point-of-sale transfer rule, most buyers now take the credit as an instant discount at purchase instead of waiting for tax season.
Quick Answer: 2026 Tax Credit Summary
| Credit Type | Max Amount | Income Limit (Single / Joint) | Price Cap | |------------|-----------|-------------------------------|-----------| | New Clean Vehicle Credit | $7,500 | $150,000 / $300,000 | $55K cars / $80K SUVs & trucks | | Used Clean Vehicle Credit | $4,000 | $75,000 / $150,000 | $25,000 | | Commercial Clean Vehicle Credit | Up to $7,500 | No income limit | No price cap | | Home Charger Credit | 30% up to $1,000 | None | — |
Credits are non-refundable if you claim them on your tax return, but fully transferable to the dealer at purchase — meaning you get the full benefit even if you don't owe enough tax.
The $7,500 New EV Credit
The new vehicle credit has two $3,750 halves, each with separate requirements:
Critical Minerals Requirement ($3,750)
A specified percentage of the battery's critical minerals must be extracted or processed in the US or a free-trade-agreement country. For 2026, the threshold is 60%.
Battery Components Requirement ($3,750)
A specified percentage of battery components must be manufactured or assembled in North America. For 2026, the threshold is 60%.
A vehicle can qualify for one half, both halves, or neither. The IRS maintains the official list at fueleconomy.gov.
Final Assembly Requirement
Regardless of the battery, the vehicle's final assembly must occur in North America. This excludes most European and Asian-built EVs unless the automaker has a US plant.
Foreign Entity of Concern Rule
Starting 2024, vehicles with battery components sourced from "Foreign Entities of Concern" (primarily China, Russia, Iran, North Korea) are disqualified. This was tightened in 2025 to include critical minerals as well.
Vehicles That Qualify for the Full $7,500 in 2026
This list changes frequently as manufacturers adjust supply chains. Always verify on fueleconomy.gov before purchasing.
| Vehicle | Credit | Type | |---------|--------|------| | Tesla Model 3 (all trims) | $7,500 | Car | | Tesla Model Y (all trims) | $7,500 | SUV | | Tesla Model X | $7,500 | SUV | | Chevrolet Equinox EV | $7,500 | SUV | | Chevrolet Blazer EV | $7,500 | SUV | | Chevrolet Silverado EV | $7,500 | Truck | | Ford F-150 Lightning | $7,500 | Truck | | Cadillac Lyriq | $7,500 | SUV | | Honda Prologue | $7,500 | SUV | | Acura ZDX | $7,500 | SUV |
Partial credits ($3,750) go to several others including certain Ford Mustang Mach-E trims and some Chrysler plug-in hybrids.
Income Limits (Modified Adjusted Gross Income)
| Filing Status | New EV Limit | Used EV Limit | |--------------|-------------|---------------| | Single | $150,000 | $75,000 | | Head of Household | $225,000 | $112,500 | | Married Filing Jointly | $300,000 | $150,000 |
The IRS lets you use the lower of the current year or prior year MAGI. If you had a big year in 2025 but expect lower income in 2026, you can still qualify by using your 2026 income.
Price Caps (MSRP)
| Vehicle Type | MSRP Cap | |-------------|----------| | Cars, wagons, sedans | $55,000 | | SUVs, vans, pickup trucks | $80,000 |
MSRP means manufacturer suggested retail price before destination fees, options, dealer markup, or discounts. A car with $54,000 MSRP plus $2,500 in options still qualifies because the base MSRP is under $55,000.
The $4,000 Used EV Credit
The used clean vehicle credit is 30% of the sale price, capped at $4,000. Requirements:
- Vehicle: Model year at least 2 years older than current year, under $25,000, purchased from a licensed dealer
- Buyer: Income under $75k (single) / $150k (joint), not a dependent, can only claim once every 3 years
- Vehicle history: This must be the first qualified resale since August 16, 2022
The used credit is a great deal for budget buyers. A $20,000 used 2023 Chevy Bolt nets out at $16,000 after the credit.
Point-of-Sale Transfer: Get the Credit at the Dealer
Since 2024, you can transfer the credit to the dealer and receive it as an instant cash discount at purchase. This is a game-changer because:
- You don't need to wait until tax season
- You get the full credit even if you owe zero federal tax
- The dealer receives reimbursement directly from the IRS
How it works:
- Dealer registers with IRS Energy Credits Online portal
- At purchase, you attest to meeting income limits
- Dealer applies the credit as a discount or down payment
- Dealer submits to IRS, gets paid within 72 hours
If you exceed the income limit at tax time, you have to pay the credit back when filing. Be honest about your expected income.
State and Local Incentives Stack On Top
The federal credit doesn't block state incentives. High-value state programs in 2026:
- California CVRP: Up to $7,500 for low-income buyers
- Colorado: $5,000 state tax credit (pending renewal)
- New York Drive Clean: Up to $2,000
- New Jersey: Sales tax exemption on EV purchases
- Illinois: $4,000 rebate via Climate and Equitable Jobs Act
Check your state's energy office website for current programs.
What Doesn't Qualify
- Most plug-in hybrids with battery < 7 kWh
- Vehicles assembled outside North America (Kia EV6 pre-2024, BMW i4, Polestar 2)
- Vehicles over MSRP caps
- Buyers over income caps
- Leased vehicles (but the leasing company can claim the commercial credit and pass it through)
The leasing loophole is worth noting: because leasing companies claim the commercial credit (no price or income caps), almost any leased EV effectively qualifies for $7,500 in lease incentives — even foreign-assembled ones.
FAQ
Can I claim the credit for a used Tesla? Yes, if it's at least 2 model years old, under $25,000, purchased from a dealer (not private party), and you meet income limits.
What if the dealer doesn't participate in point-of-sale transfer? You can still claim the credit on your tax return via IRS Form 8936. You'll just have to wait until filing season.
Does the credit apply to leases? Not directly to you, but lessors claim the commercial credit and typically pass the savings through as lower monthly payments.
Can I claim both the EV credit and the home charger credit? Yes. They're independent. Buy an EV and install a charger in the same year for up to $8,500 total in federal credits.
What if my income exceeds the cap after I already claimed the credit? You'll owe the full credit back when filing your tax return. The IRS treats the transferred amount as additional tax liability.
Next Steps
- EV Range Calculator — See real-world range for any EV before buying
- EV vs Gas True Cost — Calculate lifetime savings beyond the tax credit
- Home Charger Installation Cost — Plan for the additional $1,000 credit
- Compare EVs — Side-by-side specs on all credit-eligible vehicles