Important Update: This Credit Has Ended
The federal used electric vehicle tax credit (also known as the previously-owned clean vehicle tax credit or 25E credit) ended on September 30, 2025 as part of the One Big Beautiful Bill Act.
However, if you purchased a qualifying used EV on or before September 30, 2025, you can still claim the credit when you file your 2025 taxes (in early 2026). Use the eligibility criteria below to confirm you qualify.
Eligibility Requirements
To claim the used EV tax credit, you must meet requirements in three categories: personal eligibility, vehicle eligibility, and seller/dealer requirements.
Personal Eligibility
Income limits: Your modified adjusted gross income must be at or below the threshold for either the year you purchased the vehicle OR the prior year. You only need to qualify for one of the two years.
Joint filers or surviving spouse: $150,000
Head of household: $112,500
Single / individual / all other filers: $75,000
Additional requirements:
You must have purchased the vehicle for your own use (not for resale)
You cannot be claimed as a dependent on another person's tax return
You must not have claimed another used clean vehicle credit in the 3 years before the purchase date
Vehicle Eligibility
Price: The sale price must have been under $25,000. This includes all dealer-imposed costs and fees except those required by law (taxes, title, registration). Added items like tires, paint coating, or window tinting count toward the $25,000 limit.
Model year: The vehicle must be at least 2 model years older than the calendar year of purchase. For a 2025 purchase, the vehicle must be model year 2023 or older.
Transfer history: The vehicle must not have been transferred to a qualified buyer after August 16, 2022. Your dealer should be able to verify this.
Vehicle type: Must be an all-electric, plug-in hybrid, or fuel cell vehicle with at least 7 kWh of battery capacity.
You can verify eligible vehicle models at FuelEconomy.gov.
Seller/Dealer Requirements
The dealer must have been registered with IRS Energy Credits Online
The dealer must have submitted a "time of sale report" (seller report) to the IRS
You should have received a copy of this report—you'll need it to claim your credit
How to Claim Your Credit
When you file your 2025 taxes (due April 2026), you'll need to:
Complete IRS Form 8936
Have your vehicle's VIN (Vehicle Identification Number)
Have your copy of the dealer's time of sale report
The credit is worth 30% of the sale price, up to a maximum of $4,000. It is nonrefundable, meaning you can only use it to reduce taxes you owe—you won't receive a refund for any unused portion.
Questions?
If you purchased a used EV before September 30, 2025 and have questions about claiming your credit, we recommend consulting a tax professional or visiting IRS.gov for official guidance.
Looking to finance your next vehicle? Even without federal tax credits, EV Life can help you find competitive financing options. Prequalify here.