Want an Electric Vehicle? Act by September 2025

If you're considering the purchase of an electric vehicle for your business or personal use, then you will need to act by September 30, 2025 to capture the available credits.

The Three Credits That Are Phasing Out

On July 4th, the new U.S. tax bill was passed which terminated the following three major electric vehicle tax credits, effective September 30, 2025:

1. Section 45W - Qualified Commercial Clean Vehicles Credit. This previously allowed a credit up to $7,500 for light electric vehicles and up to $40,000 for heavy-duty commercial vehicles.

2. Section 30D - New Clean Vehicle Credit. This previously allowed a credit up to $7,500 for qualifying new electric vehicles, with requirements for domestic sourcing of battery components and minerals.

3. Section 25E - Previously Owned Clean Vehicle Credit. This previously allowed a credit up to $4,000, or 30% of the purchase price, for eligible used electric vehicles.

There were previous discussions for these credit phase outs to happen on December 31, 2025, but the bill that was passed finalized September 30, 2025 as the date for their sunset.

If you want to discuss more about this, please submit your information here and we will be in touch.

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To ensure compliance with requirements imposed by the IRS, we inform you that any US federal tax advice contained in this communication (including any attachments) is not intended or written to be used, and it cannot be used for the purpose of (i) avoiding penalties under the Internal Revenue Code or (ii) promoting, marketing or recommending to another party any transaction or matter addressed herein. Seek advice based on your particular circumstances from an independent advisor.