What Should I Know About Recent Federal EV Tax Credit and Home Charger Incentives Changes?
Federal support for electric vehicles and home charging is changing quickly. The Clean Vehicle Credit — the federal tax benefit that could reduce your tax bill by up to $7,500 for a qualifying new plug-in or fuel-cell vehicle — and the federal credit for installing home EV charging equipment have been affected by recent legislation. The One, Big, Beautiful Bill Act of 2025 (Public Law 119-21) accelerated the end dates for several clean-energy tax incentives; under that law, the new-vehicle credits are set to end September 30, 2025, and credits for charging equipment will be curtailed for property placed in service after June 30, 2026.
How Is the Clean Vehicle Credit Calculated, and What Determines the Amount You Can Receive?
The Clean Vehicle Credit can total up to $7,500, but for vehicles placed in service on or after April 18, 2023, the maximum is split into two $3,750 components:
- $3,750 if the vehicle meets the critical mineral sourcing requirement, and
- $3,750 if the vehicle meets the battery component sourcing requirement.
A vehicle that meets only one requirement will generally qualify for a partial $3,750 credit; a vehicle that meets both can qualify for the full $7,500. Vehicles that meet neither requirement are not eligible under the current rules.
What Vehicle Requirements Must Be Met to Qualify?
To qualify for the credit under the current IRS rules, a new vehicle must meet a number of conditions, including:
- Be new (not used) and bought for your own use (not for resale).
- Have a battery capacity of at least 7 kWh.
- Have a gross vehicle weight rating (GVWR) under 14,000 pounds.
- Undergo final assembly in North America.
- Be made by a qualified manufacturer.
- Fall below MSRP caps: $80,000 for vans/SUVs/pickups and $55,000 for other vehicle types.
To claim the credit, you must meet the household modified adjusted gross income (AGI) limits: $300,000 (joint filers), $225,000 (heads of household), and $150,000 (all other filers).
In addition, sellers (dealers) must report the required buyer and vehicle information to the IRS at the time of sale so that the buyer can claim the credit.
When Will These Programs End, and Could That Change?
The timetable shifted from the earlier IRA timelines because Congress passed the One, Big, Beautiful Bill Act of 2025. Under the new law, the repeal/accelerated termination generally takes effect in 2025-2026:
- New and used clean-vehicle credits (Sections 30D and 25E) — repeal effective for vehicles acquired after September 30, 2025.
- Alternative Fuel Vehicle Refueling Property Credit (the EV charger credit, Section 30C) — repeal/restriction applies to property placed in service after June 30, 2026.
- The IRS has published guidance and FAQs explaining how the law affects these provisions; because this area is actively evolving, confirm deadlines and any transitional rules with the IRS or a tax professional before relying on them.
How Does the Home EV Charger Credit Work Today?
Under the Alternative Fuel Vehicle Refueling Property Credit rules, individuals who install qualifying EV charging equipment at their main home may be eligible for a credit equal to 30% of the cost of the charger and installation, up to $1,000 per charging port, for property placed in service during the qualified period — subject to geographic (eligible census tract) and other requirements for certain versions of the credit. Businesses and tax-exempt organizations have separate rules and caps. To claim it, you generally file Form 8911 with your return. Note that recent legislation changes the deadline for property placed in service, so be sure to confirm you meet any timing or location requirements.
What Should You Do If You're Thinking About Buying an EV or Installing a Charger?
Check vehicle eligibility now. Use the official qualified-vehicle lookup (fueleconomy.gov link from the IRS) or ask your dealer whether the specific VIN or model meets the critical mineral and battery-component tests.
Watch timing rules carefully. Under current law, some credits end in 2025-2026; if you want to claim a credit, make sure you and the dealer understand the purchase/placed-in-service dates and any rules that allow a purchase contract or deposit to preserve eligibility. The IRS guidance and dealer time-of-sale reporting rules are important here.
Keep your paperwork. Dealers must provide a time-of-sale report and report to the IRS; keep copies for your records and to support any claim on Form 8936 (vehicles) or Form 8911 (chargers).
Talk to a tax professional. The rules are technical (sourcing tests, AGI limits, MSRP caps, and reporting), and recent legislative changes add transitional details — a tax preparer can help you confirm your eligibility and filing strategy.
How Berkshire Hathaway Automotive Can Help
At Berkshire Hathaway Automotive, we track EV incentives and dealer reporting requirements so you don't have to. Our sales team can confirm whether a particular model and trim qualify under the IRS rules, provide the required time-of-sale documentation, and help coordinate delivery timing if you're trying to meet an eligibility cutoff. If you're considering a new EV purchase or planning a home charger installation, our specialists can walk you through the documentation you'll need and help connect you with local installers and tax advisors. For the most reliable outcome, pair dealer guidance with advice from your tax professional.
*The information contained in this article is provided for general informational purposes only and is not intended as tax, legal, or financial advice. Federal tax rules governing EV and charging-equipment credits are complex and subject to change. Eligibility depends on your specific facts (vehicle model/VIN, purchase date, income, MSRP caps, sourcing tests, reporting requirements, etc.). Consult the IRS and a qualified tax professional to confirm current rules and applicability to your situation. For official guidance, see the IRS Clean Vehicle Credit resource.