FindMyMoney.App
Opportunity

New Clean Vehicle Credit | IRS

IRS guidance for the new clean vehicle credit, including Sept. 30, 2025 acquisition cutoff language and filing requirements.

JJ Ben-Joseph
JJ Ben-Joseph
💰 Funding Up to $7,500 (subject to IRS 30D vehicle and buyer qualification rules)
📅 Deadline Apr 15, 2026
📍 Location United States
🏛️ Source Internal Revenue Service
Apply Now

Status Update (February 2026)

IRS currently states the New Clean Vehicle Credit is not available for vehicles acquired after September 30, 2025.

IRS also states a vehicle placed in service after September 30, 2025 may still qualify if it was acquired on or before September 30, 2025, with qualifying acquisition evidence (for example, a binding written contract plus payment).

Credit Amount and Core Structure

The credit can be worth up to $7,500, subject to 30D qualification rules. IRS treats this as a vehicle-level and buyer-level test, not just a “buy an EV, get credit” rule.

Practical takeaway: confirm eligibility before purchase and keep full documentation from dealer and IRS-facing records.

Buyer Eligibility Checks

Common IRS eligibility checks include:

  • MAGI threshold test (generally $300,000 MFJ, $225,000 head of household, $150,000 single/other)
  • valid acquisition and placed-in-service timing
  • no disqualifying resale intent
  • required seller reporting submitted correctly

If you transferred the credit at point of sale, return-level reconciliation is still required when filing.

Vehicle and Seller Checks

For vehicles in scope of the credit period, IRS guidance still ties eligibility to required seller/dealer reporting and qualifying vehicle criteria. If the required time-of-sale reporting was not completed, eligibility can fail even when the buyer otherwise qualifies.

Always confirm seller gave you the required eligibility report and transmitted required information to IRS.

How to Claim

  1. Verify acquisition and placed-in-service dates satisfy current IRS cutoff language.
  2. Confirm seller/dealer reporting was completed correctly.
  3. Gather purchase contract, VIN details, payment records, and dealer report records.
  4. Complete Form 8936 and all required tax return reconciliation steps.
  5. File by the tax return deadline (generally April 15, 2026 for tax year 2025 returns).

Common Denial Triggers

  • Vehicle acquired after September 30, 2025.
  • Missing/inaccurate dealer time-of-sale report.
  • Income above MAGI limits.
  • Filing mismatch between transfer election records and return entries.
  • Incomplete records when IRS requests substantiation.

Recordkeeping Checklist

  • Sales contract and final purchase documents.
  • Date evidence for acquisition and possession.
  • VIN and model details.
  • Dealer/seller report copy.
  • Transfer election records (if applicable).
  • Filed Form 8936 and full return copy.

If You Are Near Income Thresholds

When MAGI is close to a cutoff, run a pre-filing projection for both the current and prior-year MAGI tests used by clean-vehicle credit rules. Document the basis for whichever year supports eligibility. This avoids filing-position ambiguity and reduces amendment risk if IRS later requests substantiation.

Transfer-at-Sale Reconciliation Risk

If you transferred the credit to the dealer at time of sale, your tax return still reconciles that transfer. If return-level eligibility tests are not met, IRS can require repayment through your filing reconciliation.

Before filing, verify that dealer-reported VIN, buyer identity, and transfer election details exactly match your return documents. Reconciliation mismatches are a common source of delayed processing and follow-up letters.

Official Sources