Important IRS Update To The $7,500 EV Tax Credit Deadline

September 1, 2025

The IRS has made an unexpected but welcome change to the deadline for the federal $7,500 electric vehicle (EV) tax credit.

Originally set to expire on September 30, 2025, the previous cutoff had sparked a rush among buyers and dealerships eager to complete their purchases in time.

However, the IRS has now clarified that buyers who enter into a written binding contract and make a payment or deposit by September 30, 2025, will still be eligible for the full tax credit—even if they don’t take possession of the vehicle until after the deadline.

Official IRS Guidance

“If a taxpayer acquires a vehicle under a written binding contract and makes a payment on or before September 30, 2025, then the taxpayer will be entitled to claim the credit when the vehicle is placed in service (i.e., when the taxpayer takes possession of the vehicle), even if the vehicle is placed in service after September 30, 2025,” the IRS stated.

What This Means

This adjustment significantly eases pressure on buyers, manufacturers, and dealers by allowing more time for vehicle deliveries. With demand for EVs continuing to rise, concerns about inventory shortages and missed credit opportunities had grown. The new rule helps mitigate those issues by extending credit eligibility through contracts rather than requiring delivery before the deadline.

A Boost for the EV Market

This move offers much-needed flexibility and is expected to prevent a last-minute sales surge and inventory strain. It supports a smoother rollout of EVs to consumers and promotes continued growth in the electric vehicle market.

Source: MARCA

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