Is There Still a $7,500 Tax Credit for Electric Cars in 2026?

No, the US federal $7,500 tax credit for new electric cars ended for most buyers after September 30, 2025. A separate used clean-vehicle credit of up to $4,000 also closed on the same date. Buyers outside the US were never eligible anyway.

That single change reshaped how people price EVs. For anyone looking at a used China EV for export, the US credit was mostly irrelevant — but the way it shaped resale values was not.

What happened to the $7,500 credit?

The Inflation Reduction Act credit survived from 2022 until late 2025, when it was phased out under new legislation. From October 1, 2025, consumers could no longer claim it. Dealers who had pre-sold vehicles before the deadline honoured claims, but the window is firmly shut in 2026.

The $4,000 used-EV credit, which applied to cars priced under $25,000 and at least two model years old, also ended. That is the one that most affected buyers chasing a cheap used EV.

Does the expiry change used EV prices?

In the US, yes — mildly. Losing a $4,000 credit can shave a similar amount off demand for sub-$25,000 used EVs, which pushes prices down a little. For non-US buyers sourcing from China, none of this applies directly. The 2022 BYD Atto 3 and 2023 BYD Seagull are priced on Chinese domestic depreciation, not American incentives.

What incentives still exist in 2026?

• State-level US programs: several states still offer rebates; amounts vary widely.
• EU incentives: many countries continue purchase grants, though several are phasing out.
• Gulf and Southeast Asia: import duty exemptions and EV road-tax breaks in some markets.
• Fleet programs: commercial buyers often retain deductions consumers lost.

Why does this matter if you buy from China?

Because the used-EV credit distorted the American market for years, and its removal makes US used EVs comparatively less attractive in the $20,000-$25,000 band. That widens the gap against a China-sourced equivalent. A 2024 BYD Seal DM-i at around $20,000 looks stronger when no local credit closes the gap.

Do the full landed-cost math rather than chasing a headline incentive. Shipping, duties and your own country’s registration fees usually matter more than a retired credit ever did.

Should you wait for incentives to return?

Do not plan around it. Rebates have been unstable for a decade, and manufacturers now price cars assuming buyers cannot rely on them. If a used EV pencils out on its own merits today, buy it. If it only works because of a credit that no longer exists, it does not work.

Key Takeaways

• The US $7,500 new-EV credit ended September 30, 2025.
• The $4,000 used-EV credit closed on the same date.
• Non-US buyers were never eligible — the expiry changes little for them.
• State, EU and fleet incentives still exist in parts of the market.
• Judge a used EV on landed cost, not on expired incentives.