Montgomery County is informing residents that several federal clean energy tax credits, including those for electric vehicles (EVs), will end earlier than expected under the “One Big Beautiful Bill Act” signed on July 4. However, EV buyers can still qualify for up to $7,500 in federal tax credits on new vehicles and up to $4,000 on used ones if they take delivery by September 30, 2025, with additional incentives for charging equipment available through June 30, 2026.
Per Montgomery County: “On July 4, President Trump signed the “One Big Beautiful Bill Act,” which repealed and revised many tax credits for clean energy technologies, including the Clean Vehicle Tax Credit. But don’t worry! If you’ve recently purchased or have been dreaming about an EV, you can still claim the tax credit if you take delivery of the vehicle on or before Sept. 30, 2025.
Buyers can receive up to $7,500 tax credit for the purchase or lease of select new EV models.
If you buy a used EV priced under $25,000, you can also receive up to $4,000. Note that the used EV credit is limited to vehicles purchased through a dealership, not a private sale. Keep in mind that restrictions apply to household income, vehicle price and vehicle models. Check out the IRS website for all eligibility rules.
The Section 30C Tax Credit for EV charging equipment also ends earlier than expected, but you have slightly more time to act. The tax credit will be available on eligible projects until June 30, 2026. Look up your eligibility here.
With and without the tax credit, Montgomery County’s Department of Environmental Protection will continue to work closely with local EV dealers to highlight savings opportunities and help residents and businesses with their EV charging needs.”