Ford EV Buyers Will Get Reprieve To Claim Federal EV Tax Credit

As Ford Authority previously reported, the federal EV tax credit for consumers is now set to end on September 30^th, 2025, following the passage of a new budget bill in Congress. That’s several months earlier than originally expected, leaving qualifying consumers in a bit of a rush if they want to take advantage of the discount. As such, The Blue Oval and its peers expect a large influx in demand for EVs between now and that particular date, but they may also be getting a reprieve.

The Internal Revenue Service (IRS) has published some more details pertaining to the federal EV tax credit contained within the “Big, Beautiful Bill,” as it’s otherwise known, which clarifies how that particular incentive will be handled as it relates to the aforementioned end date.

The IRS notes that “acquisition alone does not immediately entitle a taxpayer to a credit,” but also adds that “if a taxpayer acquires a vehicle by having a written binding contract in place and a payment made on or before September 30^th, 2025, then the taxpayer will be entitled to claim the credit when they place the vehicle in service (namely, when they take possession of the vehicle), even if the vehicle is placed in service after September 30^th, 2025. Taxpayers should receive a time of sale report from the dealer at the time they take possession or within three days of taking possession of the vehicle.”

For now at least, the IRS does note that these conditions “may be updated or modified upon further review,” so they’re not quite set in stone yet. Regardless, it’s potentially useful info for those that are trying to purchase a qualifying vehicle and take advantage of the federal EV tax credit, especially as demand for those models has risen following the announcement that the credit will expire soon.