⚠️ This federal credit ended September 30, 2025. The Used Clean Vehicle Credit (IRS Section 25E) was terminated by the One Big Beautiful Bill Act (OBBBA, signed July 2025). No new 25E credits are available for vehicles acquired on or after October 1, 2025. [Source: irs.gov/credits-deductions/used-clean-vehicle-credit (accessed 2026-05-17)]
Last verified 2026-05-17
Still buying a used EV? Try these instead
- PG&E Pre-Owned EV Rebate — up to $4,000 for PG&E customers buying a used EV. Income-qualified customers get the higher amount. [<page url="https://www.notion.so/3af2bb14061e4f83ba4a7789bcc6dd55">$1000 or $4000 off a Used Electric Vehicle</page>]
- California Driving Clean Assistance Program (DCAP) — grants and low-interest loans for income-qualified Californians replacing an older car with a used EV/PHEV.
- California EV browse tool — see every active rebate and tax credit by ZIP code. [<page url="https://www.notion.so/18aa4ee695208136a452fe366eba9ba0">Electric For All — Leasing New EVs and Incentives</page>]
- eMotion Autos (Benicia) — used-EV-only dealer that helps stack remaining state and utility incentives. [<page url="https://www.notion.so/16ba4ee6952081f38096d07028040aad">eMotion Autos | Used Electric Vehicle Dealership</page>]
Did you buy before October 1, 2025?
You may still claim the credit on your 2025 or 2026 tax return if:
- The vehicle was acquired on or before 9/30/2025 under a binding written contract with payment made before the deadline.
- The dealer submitted a "time of sale" report to IRS Energy Credits Online and gave you a copy.
- You meet the income cap: modified AGI at or below $75,000 (single), $112,500 (head of household), or $150,000 (married filing jointly), using the lower of the year of purchase or prior year.
- You were not the original owner and have not claimed a used clean vehicle credit in the prior 3 years.
File IRS Form 8936 with your tax return. Keep the dealer's time-of-sale confirmation with your records. [Source: irs.gov/credits-deductions/used-clean-vehicle-credit (accessed 2026-05-17)]
Free help filing
- VITA (Volunteer Income Tax Assistance) — free tax prep if your household income is under ~$67,000. Call 211 or visit irs.gov/vita to find a Nevada County site.
- AARP Tax-Aide — free tax help, no age limit. aarpfoundation.org/taxaide
Historical reference: what the credit used to be (2023 – 9/30/2025)
The Used Clean Vehicle Credit covered 30% of the sale price, up to $4,000 for qualifying pre-owned all-electric, plug-in hybrid, and fuel cell vehicles. Key rules:
- Sale price $25,000 or less
- Model year at least 2 years older than the year of purchase
- Battery capacity of at least 7 kWh
- Purchased from a licensed dealer (not a private sale)
- Buyer income caps as listed above
- Could be transferred to the dealer at point of sale for an instant discount
For the official list of eligible makes/models and full rules, see the IRS Used Clean Vehicle Credit page and IRS Publication 5900.
Sources
- IRS — Used Clean Vehicle Credit: irs.gov/credits-deductions/used-clean-vehicle-credit
- IRS — One Big Beautiful Bill provisions: irs.gov/newsroom/one-big-beautiful-bill-provisions
- IRS Publication 5900: irs.gov/pub/irs-pdf/p5900.pdf
- FuelEconomy.gov (legacy reference): fueleconomy.gov/feg/taxused.shtml