Energy Funds For All Logo

*Electric vehicle & EV charger tax credits

Funding for: , , , , , ,
Goal: , , , , , , ,

What is the current status of this program?

The Inflation Reduction Act made these credits available through 2032, but the budget reconciliation bill signed on July 4, 2025 eliminated the vehicle credits after September 30, 2025 and the charger credits after June 30, 2026. To qualify for the EV credit, you must have signed a contract for the vehicle and put some money down (nominal down-payment or trade-in) by September 30, but you may take delivery of the vehicle after that date, at which point you may claim the credit. More info here and below.

What does this funding get me?

Note that only the charger credits are still in effect. Individuals can get a credit of up to $1,000 on an EV charger. Businesses and tax-exempt entities can get up to $100,000 on chargers. Only chargers installed in low-income or non-urban areas are eligible for the credit. The vehicle credit expired September 30, 2025, but if you signed a contract and put some money down before that date, you are still eligible.

Am I eligible?

This table shows the amount of tax credit you can receive.

CREDIT DETAILS
New EVs, plug-in hybrids and fuel cell vehicles under 14,000 lbs. (individuals) $3,750 or $7,500 depending on what domestic content requirements are met
Used EVs, plug-in hybrids and fuel cell vehicles under 14,000 lbs. (individuals) Lesser of 30% of sale price or $4,000; no domestic content requirements
EVs under 14,000 lbs. (commercial/nonprofit) Lesser of incremental cost or 30% of basis (15% if the vehicle is powered in part by gas or diesel),* $7,500 limit; no domestic content requirements
EVs over 14,000 lbs. 
(commercial/nonprofit)		 Lesser of incremental cost or 30% of basis (15% if the vehicle is powered in part by gas or diesel),* $40,000 limit; no domestic content requirements
Level 2 EV chargers (individuals) 30% of the cost, up to $1,000, must be in non-urban or low-income area; Treasury Department fact sheet
Level 2 EV chargers or DC fast chargers (commercial/nonprofit) 30% up to $100,000 if wage & apprenticeship requirements are met (otherwise, 6%); must be in non-urban or low-income area; Treasury Department fact sheets for businesses / nonprofits
* Commercial EV credit is the lesser of (1) 30% of the taxpayer’s tax basis in the vehicle (15% in the case of a vehicle powered in part by a gasoline or diesel internal combustion engine), or (2) the incremental cost of the vehicle (the excess of the purchase price of a qualified commercial clean vehicle over the price of a comparable vehicle powered solely by gasoline or diesel internal combustion engine). 

How can I access the money?

You will claim the EV or charger credit when you file your tax return for the year in nwhich you purchased an eligible EV or installed eligible charging infrastructure. Beginning January 1, 2024, individual EV purchasers have the option of instead transferring the EV credit to the dealer (see below).

For commercial/nonprofit credits

Check this IRS page to find out how to claim the EV credit. Nonprofits will receive the credit as a direct payment. For-profits can carry forward unused portions of the credit to future years’ tax returns. Commercial/nonprofit credits cannot be transferred to the dealer. 

To claim the credit for installing charging infrastructure, submit Form 8911 when you file your tax return for the year in which you installed the equipment. Nonprofits will receive the credit as a direct payment. For-profits may be able to transfer any unused portion of the charger credit to another business taxpayer.

To determine if your charger is located in an eligible census tract:

  • If filing after November 15, 2024:
    • determine your 11-digit census tract geographic identifier (GEOID) under the 2020 census tract boundaries using the Census Bureau mapping tool. See if your identified GEOID is included in the IRS-provided list here: Appendix B;
    • if your property is placed in service prior to January 1, 2025, you may also determine your 11-digit GEOID under the 2015 census tracts boundaries. If you use the 2015 census tract boundaries, see if your 2015 GEOID is eligible in Appendix A.

Note that your credit may be reduced if the total of tax credits, grants, and forgivable loans that you receive for the project exceeds the project cost.

For individual credits

File Form 8936. Unused tax credits cannot be carried forward to future years’ tax returns.

However, beginning January 1, 2024, you can either claim the credit on your tax return or you can transfer the credit to the dealer who sells you the vehicle, as long as your dealer has registered with the IRS to receive the credit on your behalf.  In other words, you would receive the credit immediately from the dealer (in cash or to satisfy part of the downpayment) instead of waiting to claim the credit until you file your tax return. This also means you get the full amount of the credit regardless of how much tax you owe. 

If you transfer the credit to your dealer, you must still file Form 8936 to report it.  For more details on transferring your credit to the dealer, see this fact sheet regarding information the dealer must provide to you, Topic H on this IRS FAQ page, or these even more detailed procedural rules.

To claim the credit for installing charging infrastructure, submit Form 8911 when you file your tax return for the year in which you installed the equipment.

To determine if your charger is located in an eligible census tract:

  • If filing after November 15, 2024:
    • determine your 11-digit census tract geographic identifier (GEOID) under the 2020 census tract boundaries using the Census Bureau mapping tool. See if your identified GEOID is included in the IRS-provided list here: Appendix B;
    • if your property is placed in service prior to January 1, 2025, you may also determine your 11-digit GEOID under the 2015 census tracts boundaries. If you use the 2015 census tract boundaries, see if your 2015 GEOID is eligible in Appendix A.

What is the timeline?

These credits were designed to be available from now through 2032, but the budget reconciliation bill signed on July 4, 2025 eliminated the vehicle credit after September 30, 2025 and the charger credit after June 30, 2026.

What other incentives could I use to help me accomplish my goals?

  • Duke Energy customers in North and South Carolina who install charging infrastructure may be eligible for a rebate of certain costs incurred to prepare their site for the installation (e.g., new outlets or wiring). Details here for non-residential customers and here for residential. 
  • Randolph Electric Membership Corporation (NC) has a pilot program offering $500 rebates on Level 2 chargers and other programs to support EV drivers. Learn more.
  • Cape Hatteras EMC (NC) offers a $100 rebate to customers who install ChargePoint Level 2 chargers. Details here.
  • Pee Dee EMC (NC) offers a $150 rebate and low-interest loans for EV purchases. Details here.
  • Piedmont EMC (NC) offers a $50 bill credit per EV, as well as a special rate allowing you to charge for a discount price at off-peak hours. Details here.
  • Check the Database of State Incentives for Renewables & Efficiency (DSIRE) for additional incentives that may be offered by your state, local government, or utility, as well as important federal, state, and local policies. For questions regarding DSIRE, contact Justin Lindemann (NC Clean Energy Technology Center) at jplindem@ncsu.edu.
  • Check out our (non-exhaustive) list of non-federal funding from other sources that may fit your energy and cost-saving goals.

Where can I get more information?

Testimonials

Vickie Atkinson and Ped Frazier of Chatham County received $9000 in tax credits for a plug-in hybrid vehicle, charging station, and heat pump water heater that reduced both their fuel costs and their greenhouse gas emissions.

Dale Evarts of Durham got a tax credit on his used electric vehicle and a utility rebate on his EV charger.

Energy Funds For All Logo
FAQ
Resources
About Us
Testimonials
Success Stories
Contact