The $7,500 federal credit is gone, and so is the $4,000 used-EV credit, the lease loophole and, as of mid-2026, the home-charger credit. What is left is a patchwork: a new federal interest deduction that most people have not heard of, state rebates in roughly a dozen states that range from $750 to $7,500, utility programs worth a few hundred dollars, and a handful of used-EV incentives. This page lists what still pays as of October 2026, with the conditions that trip people up. Every state program here has run out of money or changed its terms at least once; treat the table as a map, and confirm the amount on the program’s own page the week you buy.
What Ended and When
| Incentive | What it was | Ended |
|---|---|---|
| New clean vehicle credit, §30D | Up to $7,500, taken at the dealer | Vehicles acquired after September 30, 2025 |
| Used clean vehicle credit, §25E | 30% of price up to $4,000 | Vehicles acquired after September 30, 2025 |
| Commercial credit, §45W (the “lease loophole”) | Up to $7,500 claimed by lessors and passed through | Vehicles acquired after September 30, 2025 |
| Charger credit, §30C | 30% up to $1,000 for a home charger in eligible census tracts | Property placed in service after June 30, 2026 |
| California Clean Air Vehicle decals | Solo HOV-lane access for EVs | Federal authorization lapsed September 30, 2025 |
All four federal credits were terminated by the One Big Beautiful Bill Act, Public Law 119-21, signed July 4, 2025. One exception survives on paper: IRS guidance treats a vehicle as acquired when a binding written contract was signed and a payment made, so buyers who did both by September 30, 2025 can still claim the 2025 credit even if delivery slipped. If you installed a charger before July 1, 2026, the §30C credit belongs on that year’s return, Form 8911, and most filers have not filed it yet. Nothing else federal applies to a car bought today.
The Federal Deduction That Remains
The same law created something new: a deduction for interest paid on a loan for a new personal-use vehicle whose final assembly took place in the United States, up to $10,000 of interest a year, for loans taken out after December 31, 2024 and tax years 2025 through 2028. It phases out above $100,000 of income for single filers and $200,000 for joint filers, and it is available whether or not you itemize. It is not an EV program, but it is the only federal money left on the table, and the assembly rule happens to favor several EVs.
US-assembled EVs that qualify include the Tesla Model 3, Model Y and Cybertruck, the Hyundai Ioniq 5 and Ioniq 9 (Georgia), the Kia EV6 and EV9 (Georgia, except the Korean-built GT and Ioniq 5 N), the Volkswagen ID.4 (Tennessee), the Rivian R1S and R1T (Illinois), the Ford F-150 Lightning (Michigan), the Cadillac Lyriq (Tennessee) and the 2027 Chevrolet Bolt (Kansas). Cars built in Mexico do not: the Mustang Mach-E, Equinox EV, Blazer EV, Honda Prologue and Acura ZDX. The dollar value is modest. On a $45,000 loan at 7 percent, first-year interest is about $3,000; in the 22 percent bracket the deduction returns roughly $660, less each year as the balance falls.
State Rebates Still Paying in 2026
Amounts and conditions as of October 2026, battery-electric vehicles unless noted. Point of sale means the dealer takes it off the price; otherwise you apply after purchase and wait.
| State | Program | Amount | Key conditions |
|---|---|---|---|
| Massachusetts | MOR-EV | $3,500 new; $1,500 more income-qualified; $3,500 used | New MSRP $55,000 or less; used price $40,000 or less and income-qualified; point of sale at participating dealers |
| New Jersey | Charge Up New Jersey | $1,500; $4,000 total income-qualified (Charge Up+); $250 home charger | MSRP $55,000 or less; point of sale; new program year began July 1, 2026 |
| Colorado | Innovative Motor Vehicle Credit | $750; $3,250 if MSRP under $35,000 | State income tax credit; MSRP cap $80,000; cut from $3,500 on January 1, 2026. Vehicle Exchange Colorado adds a larger income-qualified rebate with a trade-in |
| New York | Drive Clean Rebate | $2,000 under $42,000 MSRP; $500 above | New only; point of sale |
| Connecticut | CHEAPR | $1,000; up to $4,000 income-qualified; used rebate for income-qualified buyers | MSRP $50,000 or less; standard rebate doubled from $500 in late 2025 |
| Pennsylvania | Alternative Fuel Vehicle Rebate | $3,000; $1,000 more low-income | New or used, price under $45,000; income-limited; funded in rounds |
| Illinois | Illinois EPA EV Rebate | $2,000 | Was $4,000 through June 30, 2026; steps down by statute; applications only during announced windows |
| New Mexico | Clean Car Tax Credit | $3,000 new; $2,500 used; $400 home charger | Refundable and transferable state credit, 2026 amounts |
| Oregon | Clean Vehicle and Charge Ahead Rebates | $2,500; up to $7,500 income-qualified | Opens only in funded windows; suspended through 2025, a 2026 window ran mid-year; purchases outside a window do not qualify |
| Delaware, Rhode Island, Maine, Vermont | State rebate programs | $1,000–$5,000, mostly income-tiered | Smaller or intermittently funded; check status before relying on them |
California, the largest EV market, has no general rebate: the Clean Vehicle Rebate Project closed in 2023 and no statewide replacement followed the federal credit’s end. What remains there is income-qualified: Clean Cars 4 All and the Driving Clean Assistance Program pay up to $12,000 toward an EV for lower-income households that scrap an older car, plus utility rebates.
Programs That Changed or Paused
Older articles still circulate numbers that no longer exist. Colorado paid $5,000 in 2024 and $3,500 in 2025; it pays $750 now. Illinois paid $4,000 until June 30, 2026 and now pays $2,000, with a further cut written into the statute for mid-2027. New Jersey’s EV sales-tax exemption, worth about $3,500 on a $55,000 car, phased out fully in 2025; the state now charges its full 6.625 percent. Oregon’s rebate has been suspended more than it has been open since 2023, and buying during a suspension forfeits the money even if the program reopens later. Texas, Maryland and Vermont have run programs whose funding ran out well before the application window closed; a rebate that is real in March can be gone in April.
The pattern is the same everywhere: legislatures funded these programs on the assumption the federal credit would carry the load, and demand rose when it vanished. Status pages, not news articles, are the only reliable source.
Utility and Local Money
Utility programs survived because they are funded by ratepayers, not legislatures, and most buyers never claim them. They come in three forms. Home-charger rebates of $200 to $2,500 for a Level 2 unit, usually tied to enrolling in a time-of-use or managed-charging plan. Off-peak charging credits, such as Con Edison’s SmartCharge New York, which pays roughly $400 a year for charging overnight. And purchase rebates on used EVs from a few large utilities, most visibly in California, where PG&E and Southern California Edison have paid $1,000 standard or $4,000 income-qualified toward a pre-owned EV. Rates matter more than rebates over time: an EV-specific overnight rate can halve the cost of charging, which is worth more than any one-time check within three years.
The Department of Energy’s Alternative Fuels Data Center and the DSIRE database list programs by state, including utility ones, and both are updated faster than most consumer sites.
How to Stack and Not Get Burned
- Check the MSRP cap before the trim. New Jersey and Massachusetts stop at $55,000, Connecticut at $50,000, New York’s full amount at $42,000. One option package can cost you the rebate.
- Confirm the program is open that week. Illinois, Oregon, Pennsylvania and Texas run windows. Buying between windows means no rebate, with no exceptions.
- Ask whether the dealer participates. Point-of-sale programs require an enrolled dealer; a dealer outside the program cannot apply the discount, and some out-of-state purchases are excluded.
- Read the income rules both ways. Some programs cap income; others add money below a threshold. Massachusetts, New Jersey, Connecticut and Oregon all pay more to income-qualified buyers.
- Leases usually qualify for state programs even though the federal lease credit is gone; minimum lease terms of 24 or 36 months apply.
- Used buyers have four real options: Massachusetts, Connecticut, Pennsylvania and New Mexico, plus Colorado’s exchange program and California utilities. Everywhere else, the used-EV incentive is simply the price.
- Finance in your own name if the interest deduction matters. It applies to loans, not leases, and only to new US-assembled vehicles.
- Budget for the fee, not just the rebate. Most states now charge annual EV registration fees of $100 to $250 in place of gas tax; in a state without a rebate, that is the whole incentive picture.
FAQ
Is there any federal EV tax credit in 2026?
No. The new, used and commercial credits ended for vehicles acquired after September 30, 2025, and the home-charger credit ended for equipment placed in service after June 30, 2026. The only federal item left is the interest deduction on loans for new US-assembled vehicles.
Which state pays the most for an EV in 2026?
For income-qualified buyers, Oregon ($7,500 when its window is open) and Colorado’s exchange program; for everyone else, Massachusetts at $3,500 and New Jersey at $1,500 base, with New Mexico’s $3,000 refundable credit close behind. Colorado’s general credit is now $750.
Can I still get the $7,500 credit on a lease?
No. The leasing route ran through the commercial credit, §45W, which ended on the same date. Some lessors still advertise “incentives” on EV leases, but those are manufacturer discounts, not tax credits.
Are there incentives for used EVs?
Federally, none since September 2025. At state level: Massachusetts ($3,500, income-qualified), Connecticut, Pennsylvania (new or used under $45,000), New Mexico ($2,500) and Colorado’s exchange program, plus utility rebates in California.
Do EV incentives apply to plug-in hybrids?
Less and less. Several programs now pay for battery-electric vehicles only; New Mexico and Connecticut still pay reduced amounts for plug-in hybrids. Check the vehicle list, not just the headline.
Sources
- TaxGPT — Termination dates for §30D, §25E, §45W and §30C, with statutory text and IRS Fact Sheet FS-2025-05
- EV Seekers — 2026 status of the EV credit and the OBBBA loan-interest deduction
- Clean Energy Calc — EV tax credits in 2026: what expired, Public Law 119-21
- Coltura — State EV incentive guide, September 2026: New Jersey FY2027 program, New Mexico credit amounts, Oregon 2026 window
- TopRatedCar — State incentives in 2026: Colorado’s cut to $750, New Jersey, Massachusetts, New York terms
- VoltEdge — MSRP caps and income tiers for New Jersey, New York, Massachusetts, Connecticut; Oregon suspension
- Simple Switch — State rebate amounts, 2026: Illinois, Pennsylvania, Connecticut, Oregon
- Drive Authority — Illinois step-down from $4,000 to $2,000 after June 30, 2026
- Money — State EV rebates: Connecticut CHEAPR increase, Pennsylvania program terms
- Eviqo — Home charger rebates by state and utility, 2026; Con Edison SmartCharge New York
- US Department of Energy — Alternative Fuels Data Center, laws and incentives by state
- DSIRE — Database of State Incentives for Renewables and Efficiency
