Buying a car is already a big decision, and if you have been looking at electric vehicles, the $7,500 federal tax credit has probably been on your mind. This credit has helped make EVs more affordable for thousands of people, but with the new deadline of September 30, 2025, a lot of you may be wondering what happens if you cannot take delivery of your car before then. The good news is that the IRS has given buyers a little breathing room with a short extension.
Let us walk through what this means for you, how the new rules work, and what you should know if you are considering placing an order.
What does the short IRS extension really mean
The IRS recently explained that you do not have to physically receive your EV before September 30 to qualify for the $7,500 tax credit. Instead, you just need to sign a binding contract and make a payment before the deadline.
In plain terms, that means if you put money down or trade in your old car and sign an agreement by September 30, you will still get the credit—even if the car arrives later.
Key things you should know:
- The contract must be binding and non-refundable in most cases.
- A small down payment or trade-in counts as proof of payment.
- Delivery can happen after September 30, as long as the contract is signed in time.
Who can qualify for the $7,500 EV tax credit
Not every buyer and not every car qualifies for this credit. The IRS has strict rules about which vehicles and which income levels are eligible.
- Income limits: $150,000 for single filers and $300,000 for joint filers.
- Vehicle price caps: SUVs, vans, and trucks must cost less than $80,000. Other cars must be under $55,000.
- Vehicle requirements: Cars must meet rules on battery sourcing, final assembly, and where the parts come from.
Some popular models that have qualified in 2025 include the Tesla Model Y and Chevrolet Bolt, though the list is shrinking as new rules phase in.
Why this matters for EV buyers right now
If you are in the market for an EV, this update gives you a little extra time and flexibility. You do not have to panic if your dealership is facing delays or if your car is custom-built and cannot be delivered before the end of September.
For you, this means:
- You can lock in the $7,500 savings now.
- You avoid the risk of missing the credit just because of delivery schedules.
- You have a clearer picture of the real cost of the car.
How automakers and dealerships are responding
Car companies know how important this credit is for buyers. Automakers like Ford and General Motors have already told their dealers to let customers know about the new rules. You may start to see more promotions encouraging pre-orders before September 30.
At the same time, dealerships are preparing for a rush of contracts in September. This could mean limited availability, so if you have your eye on a specific model, it is smart to act sooner rather than later.
What happens after the september 30 deadline
The reality is that the $7,500 EV tax credit is going away because of the “Big Beautiful Bill,” which was signed earlier this year. After the deadline, you will no longer be able to claim this credit, and analysts already predict that EV sales could drop by 10 to 15 percent in early 2026.
Without the credit, automakers may have to adjust prices or offer rebates to keep sales strong. But for buyers like you, the bottom line is simple: if you want to save thousands of dollars, you need to act before the deadline.
Related article:
IRS Form 8857: How to request innocent spouse relief on a joint tax return?
