What’s Changing With Federal EV Incentives?
Federal electric vehicle incentives are shifting. The Clean Vehicle Credit program offering up to $7,500 in tax relief will expire on September 30, 2025, unless extended. The separate credit for installing a qualified home EV charger ends June 30, 2026. These changes may impact your buying decision and the total value of your EV purchase.
Whether you’re shopping for your first EV or upgrading to a newer Subaru model, timing and eligibility will play a critical role in how much you save.
How Is the $7,500 Federal EV Tax Credit Calculated and What Determines Your Eligibility?
The $7,500 federal tax credit isn’t one-size-fits-all. It’s split into two components:
- $3,750 for meeting critical mineral sourcing guidelines
- $3,750 for meeting battery component sourcing requirements
You may qualify for half the credit if only one condition is met. Vehicles that don’t meet either requirement are ineligible. Additionally, your annual income and the vehicle’s MSRP will also affect your eligibility.
What Vehicle and Buyer Requirements Must Be Met for a Subaru EV to Qualify for the Credit in Springfield?
To qualify for the credit, a new EV must be manufactured in North America, include a battery capacity of at least 7 kilowatt-hours, and stay under MSRP limits—$80,000 for SUVs and pickups, $55,000 for all other vehicles. Buyers must also fall within IRS income guidelines.
When Do The Federal Electric Vehicle Incentives End?
Federal EV incentives are winding down:
- The Clean Vehicle Credit ends September 30, 2025
- The home charger credit ends June 30, 2026
There’s no guarantee these programs will be extended. If you’re considering an EV, it’s smart to start reviewing your options now.
How Can Van Subaru in Springfield Assist You Throughout the EV Purchase and Incentive Process?
At Van Subaru, we’re here to simplify your EV purchase. Our team will review available Subaru EV models with you, explain what incentives are still available, and help you verify eligibility based on IRS rules and Missouri’s specific guidelines.
Reach out to Van Subaru in Springfield, MO to review your options and secure eligible tax savings before federal programs expire. We’re available to answer questions, provide model recommendations, and help ensure you take advantage of every available benefit.
