EV tax credit update 2026: What changed + state incentives still available

Key takeaways

• Most federal EV purchase credits are effectively over for 2026 shoppers. The federal credits for new (30D), used (25E), and commercial/lease (45W) clean vehicles aren’t allowed for vehicles acquired after Sept. 30, 2025.
  
• There’s a “signed-by-the-deadline” exception. If you entered a written binding contract and made a payment by Sept. 30, 2025, you can still claim the credit when you take possession (even if that happens in 2026).
  
• Some incentives still exist in 2026—just not mostly federal. Many states, utilities, and local programs still offer rebates, reduced fees, and charging incentives. A key tool to find them is the DOE’s incentives database

In 2026, the federal EV tax credit landscape looks very different: most purchase credits depend on whether you “acquired” the vehicle by Sept. 30, 2025, not whether it arrives this year. If you’re shopping now, the biggest savings are often coming from state rebates, local programs, and utility incentives, and this article breaks down what changed and how to find what’s still available where you live.

What changed for the EV tax credit in 2026

The big shift is that the federal clean vehicle credits now depend on when you “acquired” the vehicle, not simply when it was delivered.

Here are the deadlines the IRS has published under the OBBB changes:

Incentive	What it applied to	What changed	What this means in 2026
30D	New EV purchase credit	Not allowed for vehicles acquired after Sept. 30, 2025	Most 2026 buyers won’t qualify
25E	Used EV purchase credit	Not allowed for vehicles acquired after Sept. 30, 2025	Most 2026 used-EV buyers won’t qualify
45W	Commercial EV credit (often used to discount leases)	Not allowed for vehicles acquired after Sept. 30, 2025	Lease-related federal savings may be reduced/ended
30C	EV charger/refueling property credit	Not allowed for property placed in service after June 30, 2026	Charger installs can still matter in 2026—watch the date

Quick answer: do you still qualify for a federal EV credit in 2026?

1) Buying an EV in 2026 (contract signed now)

In most cases, no federal clean vehicle credit, because the IRS cutoff is based on vehicles acquired after Sept. 30, 2025.
Your savings are more likely to come from state rebates, utility incentives, dealer programs, or local clean-air programs.

2) Taking delivery in 2026 (but you locked it in by Sept. 30, 2025)

You may still qualify if you:

• Signed a written binding contract by Sept. 30, 2025, and
• Made a payment by that date (even a nominal down payment or trade-in can count), and
• Later take possession (that’s when it’s “placed in service”).

3) Installing a home EV charger in 2026

The federal charging credit may still apply if the charger is placed in service by June 30, 2026 (meaning installed and ready to use).

The two IRS definitions that matter most

The IRS spells out two key terms that determine eligibility:

• “Acquired” (for 25E/30D/45W): the date you enter a written binding contract and make a payment (including nominal down payment or trade-in).
• “Placed in service”: when you take possession of the vehicle.

Why this matters: If you acquired the EV by Sept. 30, 2025, you can still claim the credit when you take possession later—potentially in 2026.

If federal credits are mostly gone, where can 2026 EV savings still come from?

Even without a federal purchase credit, many buyers can still reduce costs through state, local, and utility incentives, such as:

• Point-of-sale rebates (often applied by a participating dealer)
• State tax credits (claimed on your state return)
• Sales tax exemptions or fee reductions (varies widely)
• Income-qualified “replace your ride” programs (common in bigger metros)
• Home charging rebates (often from utilities) and special EV electricity rates

A reliable starting place is the DOE Alternative Fuels Data Center (AFDC), which tracks incentives by state and utility.

State incentives still available in 2026 (examples)

Programs change frequently (and some run out of funding), so treat this as a starting shortlist, not a final guarantee.

Where	What’s still available (high level)	Official place to start
Colorado	State EV tax credits for qualifying vehicles (amount varies by tax year)	CO Dept. of Revenue EV tax benefits
Connecticut	CHEAPR rebates for eligible EV purchases/leases (including income-focused add-ons)	CT DEEP CHEAPR
Massachusetts	MOR-EV rebates for eligible EVs + additional state EV incentive resources	MOR-EV (Mass.gov)
New Jersey	“Charge Up” EV incentives (program details and current amounts vary by phase)	Charge Up New Jersey
New York	Drive Clean Rebate (applied at participating dealerships; rebate depends on model)	NYSERDA Drive Clean Rebate
Oregon	Oregon Clean Vehicle Rebate Program (watch funding/waitlist notes)	Oregon CVRP
California	Income-qualified “replace an older car” style programs (often administered locally)	CARB Clean Cars 4 All

A few “watch-outs” worth knowing

• Some programs ended recently. For example, Washington’s EV sales/use tax exemption expired July 31, 2025.
• Funding can run out mid-year. Maryland’s EV excise tax credit is subject to funding, and the MVA notes FY26 funding is no longer available (as posted).
• Popular programs can pause. Oregon’s site flags funding timing/waitlist language for some applications.
• California’s “Clean Fuel Reward” site says the program is currently inactive, so if you’re counting on it, confirm before shopping.

How to find your state’s EV incentives in 2 minutes

1. Go to the DOE AFDC Federal and State Laws and Incentives database.
2. Select your state, then filter by Electric.
3. Open any incentive and check:
   • Eligibility (income, MSRP/price caps, residency, dealership participation)
   • Funding status (open, waitlist, paused)
   • Last updated date and official program contact
4. Don’t forget Utility Incentives (often where charger rebates live).

If you’re claiming a federal credit from a pre-deadline purchase, don’t skip the paperwork

If you qualify because you acquired by Sept. 30, 2025 and take delivery later, keep an eye on the IRS’s “time of sale” requirements:

• You should get a time-of-sale report when you take possession (or shortly after).
• You typically claim the clean vehicle credit using Form 8936 (and your vehicle VIN).
• If you transfer the credit at point of sale (when that’s available), the transfer election generally happens at the time of sale/possession, not just when you sign a contract.

Bottom line

In 2026, the “EV tax credit” story is mostly about timing and where you live. Federal purchase credits largely hinge on whether you acquired the vehicle by Sept. 30, 2025, but many buyers can still save through state rebates, local clean-air programs, utility incentives, and charger-related benefits, especially if they’re willing to confirm funding status and follow the program rules closely.

FAQs: EV tax credit 2026

Is there still a federal EV tax credit in 2026?

For most people buying in 2026, no, because the IRS says the new and used clean vehicle credits aren’t allowed for vehicles acquired after Sept. 30, 2025.

Can I claim the credit if my EV is delivered in 2026?

Potentially, yes, if you entered a written binding contract and made a payment by Sept. 30, 2025, then take possession later.

Are EV leases still discounted by federal credits in 2026?

The IRS lists the commercial clean vehicle credit (often tied to lease economics) as ending for vehicles acquired after Sept. 30, 2025.

Is there still a federal credit for installing a home EV charger in 2026?

The IRS OBBB FAQ says the charging credit isn’t allowed for property placed in service after June 30, 2026—so early-to-mid 2026 installs may still qualify.

What’s the best way to find state incentives that are actually open?

Start with the DOE AFDC database, then click through to the official state or program page for funding status and application steps.