Aug. 26, 2025
Plug In America, a national nonprofit accelerating the shift to electric vehicles (EVs), wants EV shoppers to know about the recent update to the federal EV tax credits. The EV tax credits are expiring on Sept. 30, but recent guidance issued by the IRS specifies that buyers can use the EV tax credits if they sign a contract and make a payment, which could be a deposit or vehicle trade-in, by Sept. 30 and take possession of the vehicle after this date. This applies to new, used and commercial electric vehicles.
The updated guidance gives buyers more time to source and manufacturers more flexibility to meet demand. This is especially valuable for fleets that want to order or have already ordered a large number of EVs, which manufacturers cannot make and deliver by Sept. 30.
“There has never been a better time to get a great deal on an electric vehicle,” said Joel Levin, Plug In America executive director. “This updated guidance clarifies that if you order a vehicle, sign a contract, and put down a deposit, you can benefit from the tax credits even if the EV is delivered after Sept. 30. This is great news for drivers interested in saving on fuel costs, minimizing time and money spent on maintenance and having a superior driving experience.”
Plug In America has the following tips for EV purchasers or leasees:
- Make sure the dealer or manufacturer is registered with the IRS to get the tax credit at the point of sale when purchasing an EV.
- Make sure to receive a time-of-sale report from the dealer when picking up the vehicle or within three days of picking it up.
- Download or print out the Plug In America EV Shopper Checklist before heading to the dealer.
- Remember that federal tax credits can often be layered with state, utility and local incentives. Check PlugStar.com to see what’s available in your area.
Plug In America has a library of resources for EV shoppers, including free, personalized support through its EV Support Center and an EV shopping website with a shopping assistant, car comparisons, incentive finder and more at PlugStar.com.
About Plug In America
Plug In America is the nation’s leading nonprofit organization dedicated to accelerating the use of plug-in electric vehicles in the United States through education, advocacy and research. Formed in 2008, Plug In America provides practical, objective information to consumers and dealerships about EVs through various programs, including National Drive Electric Week, Drive Electric Earth Month, PlugStar.com, and other public outreach events. Learn more at PlugInAmerica.org.
Media contact: Lindsey Perkins
