Is There Still a $7500 Tax Credit for Used EVs in 2026?

Is there still a $7500 tax credit for electric cars? Not in the United States. The clean vehicle credit under IRC 30D ended for vehicles acquired after September 30, 2025, and the $4,000 used clean vehicle credit under 25E closed at the same time. As of 2026, there is no federal US purchase credit on new or used EVs.

That changes the maths for anyone comparing a Chinese used EV against a locally bought one. For three years the $4,000 credit made a $14,000 used EV effectively a $10,000 car. Now the sticker price is the price.

What exactly ended, and when?

Three separate credits:

• 30D new EV credit ($7,500): sales had to be completed by 30 September 2025.
• 25E used EV credit ($4,000 or 30% of price): same cutoff, and it applied only to cars at least two years old costing under $25,000.
• 45W commercial credit: removed for vehicles placed in service after the same date.

Leases survived slightly longer in some state programmes, but the federal piece is over. State incentives in Colorado, California and New Jersey are still active as of early 2026, typically $1,000-$3,500, though several are income-capped.

Do other markets still subsidise used EV imports?

Some do, in a different form. Thailand, Indonesia and Malaysia have run import-duty waivers on BEVs rather than income-tax credits. The EU applies a 10% import duty on Chinese EVs but no purchase subsidy for imports. Gulf states generally have no EV purchase incentive at all, with the exception of free or discounted registration in Dubai.

If you are buying for resale in Southeast Asia, the duty structure matters more than any credit. On a $15,000 BYD Atto 3, the EU’s 10% duty is $1,500; in a duty-free ASEAN market it is zero.

Without the credit, are Chinese used EVs still worth it?

For most non-US buyers, the credit was never relevant. A buyer in Lagos, Karachi, Almaty or São Paulo was not claiming IRS 25E anyway. What matters there is landed cost and parts.

Market	Purchase credit 2026	Import duty on Chinese EV
United States	None (federal)	Tariffs apply, high
European Union	None for imports	10% + registration
Thailand	Duty waivers (BEV)	Reduced
UAE / Gulf	None	5% customs
Nigeria / Kenya	None	Varies, age limits

For US buyers specifically, the loss of the credit hurts used-EV resale. Expect 5-8% softer prices on 2022-2023 Chinese EVs already landed in the US through 2026 — good news if you are buying, bad if you sell.

What should a 2026 buyer do instead of chasing a credit?

• Compare landed cost, not sticker. Freight from Ningbo to Lagos runs $1,200-$1,800 per car on a shared container.
• Check state or national incentives where you actually register the car.
• Buy a model with local parts support. A Tesla Model 3 Highland costs more but services anywhere.
• Factor battery health into resale. A 92% SOH car holds $1,500-$2,500 more value than an 85% car of the same age.

One honest note: a lot of 2026 pricing advice online still references the $7,500 figure. Dealers use it as an anchor even though the money is gone. Ignore the anchor and negotiate on landed cost.

Key Takeaways

• The $7,500 US new EV credit ended 30 September 2025.
• The $4,000 used EV credit closed on the same date.
• No federal US purchase credit exists for EVs in 2026.
• Some states and ASEAN duty waivers still reduce effective cost.
• Price Chinese used EVs on landed cost and battery health, not on expired credits.