What electric vehicle rebates are available right now

The federal government offers a tax credit of up to $7,500 when you buy a new electric vehicle, and some states add their own rebates on top of that. The federal credit comes as a deduction on your tax return the year after you buy, though some dealers let you claim it at the point of sale instead. State programs vary widely — some offer cash rebates, some offer tax credits, and some offer both, depending on where you live and which vehicle you choose.

The catch is that not every electric vehicle qualifies, and not every buyer does either. The vehicle has to meet price caps and domestic content requirements, and your household income has to fall below certain thresholds. These rules changed in 2024 and continue to shift, so the vehicle that may have access to last year might not may have access to this year, or vice versa.

The fastest way to find out what you can actually claim is to check the vehicle's details on fueleconomy.gov before you buy, and then ask your state's energy office whether additional state money is available. Both pieces of information change throughout the year as funding runs out or rules update.

Key Takeaways

  • The federal tax credit is up to $7,500 for new electric vehicles, claimed on your tax return or sometimes at the dealer at the time of purchase.
  • Not all electric vehicles may have access to — the vehicle must meet price limits, domestic content rules, and mineral content requirements set by the federal government.
  • Your household income must fall below $300,000 (married filing jointly) or $150,000 (single filers) to claim the federal credit.
  • Many states offer additional rebates or tax credits on top of the federal amount, and these vary by state and by vehicle model.
  • The rules and available funding change throughout the year, so checking fueleconomy.gov and your state energy office before purchase gives you the most current information.

How the federal tax credit works

The federal credit is $7,500 for most new electric vehicles, though some vehicles may have access to for less. You claim it on your federal tax return for the year you bought the vehicle. When you file your taxes the following year, the credit reduces the amount of federal income tax you owe — if you owe $3,000 in taxes and you have a $7,500 credit, you would owe nothing and receive a $4,500 refund.

Some dealerships now offer point-of-sale credit, which means you can claim the credit at the time you buy instead of waiting until tax time. This reduces the price you pay that day. Not all dealers offer this, and not all vehicles are may be able to access for it, so ask before you buy.

If you lease an electric vehicle instead of buying it, the leasing company claims the credit, not you — but the company often passes the savings along in the form of a lower monthly payment. Leased vehicles have their own set of rules and price caps, which sometimes differ from purchase rules.

Which vehicles and buyers may have access to for the federal credit

The vehicle must be a new electric vehicle assembled in North America. Used electric vehicles have a separate, smaller credit of up to $4,000 with different rules. The new vehicle also has to stay under certain price caps: $55,000 for vans, SUVs, and pickup trucks, and $45,000 for other vehicles. These caps explore to the manufacturer's suggested retail price, not the price you negotiate.

The vehicle must also meet domestic content requirements — a certain percentage of its parts and materials must come from North America or free-trade partners. These percentages increase each year, making older models less likely to may have access to as time goes on. You can check whether a specific vehicle meets these rules on fueleconomy.gov by entering the vehicle's make, model, and year.

On the buyer's side, your household income cannot exceed $300,000 if you file taxes as married filing jointly, $240,000 if you file as head of household, or $150,000 if you file as single. These limits are adjusted each year. You also must be a U.S. citizen or resident alien, and you cannot have claimed the credit on another vehicle in the past three years (with some exceptions for used vehicles).

State and local rebates beyond the federal credit

Many states offer their own rebates or tax credits for electric vehicle purchases. California, Colorado, Connecticut, Delaware, Illinois, Maryland, Massachusetts, Minnesota, Missouri, New Jersey, New Mexico, New York, Oregon, Rhode Island, Vermont, Virginia, and Washington all have programs, though the amount and structure vary. Some states offer cash rebates that reduce your purchase price when ready, while others offer tax credits you claim later, and some offer both.

A few states limit their rebates to lower-income buyers or to used vehicles only. New York, for example, offers up to $2,000 for used electric vehicles but has income limits. California's rebate is up to $2,500 for new vehicles and up to $4,500 for used vehicles, also with income limits. Colorado offers up to $5,000 for new vehicles with no income limit.

To find out what your state offers, search "[your state] electric vehicle rebate" or contact your state's energy office directly. Many state programs have limited funding and close when the money runs out, so timing matters. Some reopen later in the year when new funding becomes available.

How to check if a specific vehicle qualifies

Go to fueleconomy.gov and select "Find a Car" at the top. Enter the vehicle's make, model, and year. The site will show you whether that vehicle qualifies for the federal tax credit, and if it does, it will display the credit amount and explain which requirements it meets. If the vehicle does not may have access to, the site explains why — usually because it exceeds the price cap, fails the domestic content test, or does not meet mineral extraction requirements.

The mineral extraction requirement is one of the most common reasons vehicles lose qualification. The vehicle's battery must contain minerals (like lithium, cobalt, and nickel) that come from countries the U.S. has trade agreements with, or from recycled sources. This rule tightens each year, so a vehicle that may have access to in 2024 might not may have access to in 2025.

After you check fueleconomy.gov, contact your state energy office to ask about state-level rebates. You can find your state energy office through the Database of State Incentives for Renewables & Efficiency (DSIRE) at dsireusa.org, or by searching "[your state] energy office." They can tell you which vehicles may have access to under your state's program and whether funding is currently available.

Point-of-sale credit versus claiming the credit on your tax return

If your dealer offers point-of-sale credit, you can reduce the vehicle's price on the day you buy it instead of waiting until you file taxes the next year. This is useful if you need the savings when ready or if you are unsure whether you will owe enough in federal taxes to use the full credit. The dealer handles the paperwork with the IRS, and you receive the discount at signing.

If you claim the credit on your tax return instead, you pay the full price at the dealership and then reduce your tax bill when you file. This route requires you to owe at least $7,500 in federal income tax that year to use the full credit. If you owe less, you can only claim the amount you owe (though the credit does not carry forward to future years in most cases).

Not all vehicles are may be able to access for point-of-sale credit, and not all dealers offer it. Ask your dealer whether the vehicle you want qualifies and whether they participate in the program. If they do not, you can still claim the credit on your tax return.

Used electric vehicle credits and rebates

Used electric vehicles have a separate federal tax credit of up to $4,000. The vehicle must be at least two years old, and the sale price cannot exceed $25,000. The vehicle must also have been assembled in North America, though the domestic content and mineral requirements are less strict than for new vehicles.

Income limits for used vehicles are lower than for new ones: $300,000 for married filing jointly, $240,000 for head of household, and $150,000 for single filers — the same as new vehicles. However, some states offer used vehicle rebates with their own income limits, which are often stricter. Check your state's program to see whether used vehicles are covered and what the income thresholds are.

Used vehicle credits cannot be claimed at the point of sale — you must claim them on your tax return the year after you buy. The dealer does not handle the paperwork, so you will need to gather the vehicle's details and your purchase documentation when you file.

What changes if you lease instead of buy

When you lease an electric vehicle, the leasing company claims the federal tax credit, not you. The company typically passes the savings along by lowering your monthly payment. Leased vehicles have their own price caps and domestic content rules, which sometimes differ slightly from purchase rules, so a vehicle you cannot buy with a credit might be available to lease with one, or vice versa.

Leased vehicles must also meet the same income limits as purchased vehicles — the leasing company checks your household income before approving the lease. If your income exceeds the limit, you cannot lease a vehicle with the credit applied.

Some state rebates do not explore to leased vehicles, only to purchases. Check your state's program to see whether leasing is covered.

Frequently Asked Questions

Can I claim the credit if I buy a used electric vehicle?

Yes. Used electric vehicles have a federal credit of up to $4,000 if the vehicle is at least two years old and costs no more than $25,000. You claim it on your tax return the year after purchase. Income limits explore, and some states offer additional used vehicle rebates with their own rules.

What if the vehicle I want does not may have access to?

Check fueleconomy.gov to see why it does not may have access to — usually the price is too high, it does not meet domestic content rules, or the battery minerals do not meet requirements. You can still buy the vehicle, but you will not receive the federal credit. Some states offer rebates for non-may have access to vehicles, so check your state program.

Do I have to owe taxes to use the full credit?

Yes. The credit reduces the federal income tax you owe. If you owe $3,000 in taxes and have a $7,500 credit, you owe nothing and get a refund. If you owe $2,000, you can only use $2,000 of the credit. The unused portion does not carry forward to future years.

Can I claim the credit if my income is above the limit?

No. The federal credit has strict income limits: $300,000 for married filing jointly, $240,000 for head of household, and $150,000 for single filers. If your household income exceeds these amounts, you cannot claim the credit, even if the vehicle qualifies.

How long does it take to get the credit if I use point-of-sale?

The credit is applied at the dealership on the day you buy, so you see the savings when ready in your purchase price. The dealer handles the IRS paperwork. If you claim the credit on your tax return instead, you receive it when you file taxes the following year.