If you’re planning to purchase a new or used electric vehicle (EV), either for personal use or as part of your business fleet, you need to act quickly. Key federal EV tax credits are set to expire on September 30, 2025, under new legislation recently signed into law—H.R. 1 (One Big Beautiful Bill Act).
These changes have immediate financial implications for both individuals and businesses considering an EV investment.
EV Tax Credits Ending Soon
Three major tax credits will be eliminated for vehicles placed in service after September 30, 2025:
Section 45W – Qualified Commercial Clean Vehicles Credit
Up to $7,500 for light-duty EVs
Up to $40,000 for heavy-duty commercial vehicles
Available to businesses and commercial operators
Section 30D – New Clean Vehicle Credit
Up to $7,500 for eligible new EV purchases
Subject to mineral sourcing and battery component requirements
Section 25E – Previously Owned Clean Vehicle Credit
Up to $4,000 or 30% of the vehicle’s price
For individual taxpayers purchasing used electric vehicles
These credits have significantly reduced the cost of EV ownership. Their elimination represents a major shift in federal clean energy policy.
What Changed—and Why Timing Matters
July 1: The U.S. Senate passed H.R. 1
July 3: The House approved the bill
July 4: The President signed it into law
Originally set to expire on December 31, 2025, the final law moves the deadline up by three months. That leaves a limited window for qualified EV purchases.
What You Need to Do Now
To qualify for these tax credits, your electric vehicle must be delivered and placed in service by September 30, 2025. Any delay—even by a single day—could result in lost eligibility.
This is especially important if you are:
A business owner planning to upgrade your fleet
A self-employed taxpayer in need of a new vehicle
A family considering a more environmentally friendly transportation option
Final Thoughts from Berndt CPA
EV tax credits can make a meaningful difference in your bottom line. Whether you’re making a personal decision or a business investment, acting now could save you thousands of dollars.
Our team is here to help you navigate the requirements and ensure your purchase qualifies.
Contact your Berndt CPA advisor today to review your options and take full advantage of these credits before the deadline.
