The federal EV tax credit, worth up to $7,500, expires Sept. 30 after elimination by the One Big Beautiful Bill Act, but the IRS clarified deadline flexibility. Buyers who enter a binding contract to purchase a vehicle and make a payment before Sept. 30 can qualify for the credit even if delivery occurs later. A payment can be a nominal downpayment or a vehicle trade-in. The credit is granted only upon taking possession, but eligibility hinges on the pre-deadline contract. The IRS previously relied on delivery dates but has used contract-dating language before; the guidance aids out-of-state purchases and pre-orders.
The clock is ticking on the federal EV tax credit for electric vehicle purchases, worth up to $7,500. The One Big Beautiful Bill Act eliminated the credit, which expires Sept. 30. But this week the IRS clarified that the deadline has a little bit of flexibility. Specifically, as long as a shopper enters a binding contract to buy a vehicle before Sept. 30, the purchase can qualify for the tax credit even if the car isn't actually delivered until later.
"A payment before the deadline is also required. "A payment includes a nominal downpayment or a vehicle trade-in," the IRS notes. The tax credit won't actually be granted until the buyer takes possession of the car, but as long as the binding contract was in place before the deadline, it won't matter that the transfer happened afterward. The IRS has typically used delivery dates to determine eligibility for the tax credit;"
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