Federal EV tax credits have ended: Here’s what you need to know
Since 2022, Vermonters had been able to tap into federal tax credits when purchasing or leasing a new or used EV. The tax credits have helped more Vermonters afford EVs, and the number of EVs on the road has doubled in just two years.
The federal budget bill passed in July included a rapid sunsetting of EV tax credits. Eligible new and used EVs must have been purchased before September 30, 2025, to qualify.
Here’s what you need to know:
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Federal tax credits expired September 30, 2025
Many dealerships applied the tax credit immediately at the time of sale or lease. The September 30th deadline applied for both consumers and businesses.
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How to get your incentive
If you bought or leased your EV by September 30th and didn't get the incentive at the point of sale, you can redeem your incentive when you file your taxes in April 2026.
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Eligibility requirements
To see if you qualify, check out our Federal Incentives page.
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Federal tax credits for chargers don’t expire until June 30, 2026
Finally, some good news! Most EV charging happens at home, so if you buy or lease an EV, you’ll probably want to install a charging station. See details here. The deadline is the same for businesses installing charging equipment.
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Utility incentives are still available
Most Vermont utilities offer incentives for EVs or EV charging equipment. Those incentives don’t expire on September 30th. Select your utility to see what’s available to you.
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Buying or leasing an EV is still a good choice
Even though the federal tax credits are ending, EVs aren’t going anywhere. They’ve gained popularity in recent years, and the charging infrastructure continues to expand in Vermont and beyond. There are more used EVs on the market than ever before. And the cost of electricity continues to be more stable than the price of gas. Learn more about the benefits of driving electric.
Drive Electric Vermont is here to help Vermonters navigate how these changes may impact your plans to purchase or lease an EV or make other energy-saving upgrades to your home or business. We can’t provide detailed tax advice, but our customer support team is available and ready to help Monday – Friday from 9:00 a.m. - 5:00 p.m.