The $7,500 EV deal that disappears at the end of September » Yale Climate Connections

September 30, 2025, is the last day to buy a used or new electric vehicle if you want to get thousands of dollars back at tax time in the U.S.

Tax credits for EVs were originally set to last until 2032, but the July budget passed by Congressional Republicans terminated them ahead of schedule. The ‘One Big Beautiful’ law also sets an end date of December 31, 2025, for electric home appliances, energy efficiency improvements, and more.

The suite of tax credits was enacted by Democrats in 2022 through the Inflation Reduction Act, with the goal of slowing climate change by making planet-friendly technology more affordable. A Yale Climate Connections analysis published earlier this year found that red states stood to benefit the most from the law’s incentives to individuals and businesses. The GOP budget law guts those incentives in favor of cutting taxes for the wealthy.

As a result, the electric vehicle tax credits are set to expire at the end of September, and most of the other credits expire at the end of 2025. The exception is a credit for EV chargers, which will remain available through June 30, 2026.

Rewiring America, a national pro-electrification nonprofit, is offering coaching and other resources for people wanting to take advantage of the credits before they expire.

Replace your combustion engine car with a new or used EV

Purchase an EV by September 30, 2025, to receive a tax credit on your 2025 taxes. You can get up to $4,000 for a used EV and $7,500 for a new one.

Read: Don’t get fooled: Electric vehicles really are better for the climate

The $7,500 clean vehicle credit applies to new vehicles that:

• Are electric vehicles with batteries of at least seven kilowatt-hours, or are hydrogen fuel cell vehicles
• Cost less than $80,000 for vans, SUVs, and pickup trucks, or under $55,000 for all other vehicles
• Completed assembly in the U.S., Canada, or Mexico.
• Meet requirements related to where battery components are manufactured and the source of critical minerals used in the batteries.

To qualify for the tax credit, the adjusted gross income of the person or people purchasing the car must be under $300,000 if their tax status is married filing jointly, under $225,000 for head of household status, or under $150,000 for single or married filing separately status.

If you’re interested in buying a used car, similar restrictions apply, but with lower income and vehicle cost thresholds. Your adjusted gross income must be under $150,000 if your tax status is married filing jointly, or under $75,000 if your filing status is single or married filing separately.

For a vehicle to qualify for the credit for previously owned clean vehicles, it must also:

• Meet the requirements for a clean vehicle used in the clean vehicle credit
• Have a model year at least two years earlier than the date of sale
• Weigh less than 14,000 pounds
• Cost less than $25,000

This credit is for either $4,000 or 30% of the cost of the vehicle, whichever is smaller.

Businesses and nonprofits can also consider buying an EV for that organization. The commercial clean vehicles credit gives businesses and tax-exempt organizations like churches, universities, and other nonprofits money back for purchasing a qualified vehicle. Businesses can get a $7,500 credit for a small vehicle or up to $40,000 for a large vehicle like a school bus or semitruck.

Put an EV charging station in your home or small business

The alternative fuel vehicle refueling property credit allows individuals and businesses that install EV charging stations to get up to 30% (up to a maximum of $1,000 for individuals and $100,000 for businesses) off the cost of the project in the form of tax credits. This credit ends on June 30, 2026.

Improve your home’s energy efficiency with new windows, insulation, and doors

The energy-efficient home improvement credit gives homeowners who make qualifying purchases a tax credit worth 30% of the cost up to $1,200 for energy-efficient property costs and certain energy-efficient home improvements. To qualify for this tax credit, installation must be complete by December 31, 2025.

Energy audit

Home energy audits help you understand how much energy your home uses and improvements that can reduce that use. The energy-efficient home improvement tax credit will help cover the cost of home energy audits. The credit covers 30% of the cost of a home energy audit and is capped at $150.

“A home energy assessment should be your first step before making energy-saving home improvements, as well as before adding a renewable energy system to your home,” according to the U.S. Department of Energy.

New wiring

The tax credit also applies to rewiring if you have an older home that isn’t prepared to support new electric appliances. Contact a trusted electrician or contractor and tell them that you’re hoping to replace your gas furnace or other appliances with their electricity-based equivalents in the near future. Ask if those upgrades will require a new electric panel or wiring.

Improve insulation in your home

A well-insulated home stays warmer in the winter and cooler in the summer. Improving your home’s insulation reduces your heating and cooling needs, potentially enabling you to purchase a smaller, cheaper rooftop solar system if you go that route.

New windows and exterior doors

With the tax credit, homeowners can get up to $250 back per exterior door ($500 total) and $600 total back for exterior windows and skylights.

Replace your furnace, AC, and water heater with a heat pump

Heat pumps both cool and heat your home. In the summer, they pull heat from the air of your home and move it outside. In the winter, they pull heat from the outdoor air into your home to warm it. Heat pumps are more energy-efficient than conventional air conditioning or heating, and they run on electricity rather than natural gas or oil.

Homeowners can receive up to $2,000 per year for qualified heat pumps, water heaters, biomass stoves, or biomass boilers. This $2,000 is separate from the $1,200 cap on other home improvements.

Several different kinds of heat pumps are available, so work with your contractor or energy efficiency professionals to determine which type makes the most sense for your climate and living situation. To qualify for this tax credit, installation must be complete by December 31, 2025.

Get a renewable energy system to power your home

Not every home is suitable for a renewable energy system, but if your property can support one, the residential clean energy credit can help you pay for it – for now. Systems that qualify for the credit include:

• Home solar
• Qualified battery storage
• Solar water heating
• Fuel cells
• Geothermal heat pumps
• Small wind energy

The residential clean energy tax credit amount is 30% of the cost of a qualifying system, including installation. To qualify for this tax credit, installation must be complete by December 31, 2025.

Savings will ripple through energy bills

In order to get these tax credits before they’re terminated, consumers will have to pony up large amounts of money on short notice. But in addition to getting money back on taxes, more efficient homes and cars can lead to savings on energy bills. The Republican law is predicted to increase energy costs as the once-booming renewable energy industry faces canceled investments and projects. For consumers who can afford it, the next few months might just be the best time to make energy efficiency investments.

Read: 10 ways that Trump’s tax bill would undermine his energy promises

A version of this story was first published June 27, 2025.