Clean Vehicle Credits
The Clock is Ticking on Clean Vehicle Credits
The One, Big, Beautiful Bill Act (OBBBA) has drastically shortened the timeline for valuable tax credits. Act before the deadline to benefit.
Deadline: September 30, 2025
All individual and commercial clean vehicle credits expire on this date.
A Drastic Change in Timelines
The credits were originally set to last until 2032.
Individual Tax Credits Explained
Credits are available for both new and used clean vehicles, but the rules are strict.
New Vehicle Credit (Sec. 30D)
The max credit of $7,500 is split into two parts based on vehicle sourcing requirements for critical minerals and battery components. Meeting one gets you half the credit.
Additionally, there are strict price caps on qualifying vehicles.
Used Vehicle Credit (Sec. 25E)
A separate credit exists for used clean vehicles purchased from a dealer, with its own set of limitations.
Key Requirements Checklist:
- ✔ Final Assembly in North America (New)
- ✔ Purchased from a Dealer (Used)
- ✘ Subject to Taxpayer Income Limits
Business Credit (Sec. 45W)
Businesses can also benefit from the Qualified Commercial Clean Vehicle Credit, with maximums depending on vehicle weight.