Fresh Start Auto Detail of Chesterfield: Understanding EV Tax Credits Before They Expire in 2025

At Fresh Start Auto Detail, we provide mobile detailing services to keep your electric vehicle (EV) in excellent condition, wherever you are. With federal EV tax credits set to expire soon, this is a key time to consider purchasing an EV and maintaining it with professional care.

Below is an overview of the current EV tax credit status, how to claim them before they sunset, and how our mobile detailing services can support your EV ownership.

Status of EV Tax Credits in 2025

The federal EV tax credits, established in 2008 and expanded under the 2022 Inflation Reduction Act, are scheduled to end on September 30, 2025, as part of the One Big Beautiful Bill (OBBB) passed in July 2025.

These credits have made EVs more accessible, but their expiration may affect future affordability.

Current credits include:

New EVs: Up to $7,500 for qualifying new plug-in electric or fuel cell vehicles purchased and placed in service before September 30, 2025.

Used EVs: Up to $4,000 (or 30% of the sale price, whichever is less) for qualifying used EVs purchased from a licensed dealer for $25,000 or less.

Leased EVs: The $7,500 credit may be claimed by the leasing company, which could reduce lease costs, depending on the agreement.

After September 30, 2025, these federal credits will no longer be available, prompting many buyers to act before the deadline.

Eligibility for EV Tax CreditsTo qualify for these credits, both the buyer and vehicle must meet specific criteria.

Buyer Eligibility

Income Limits:

New EVs: Modified adjusted gross income (MAGI) of $300,000 or less for joint filers, $225,000 for heads of household, or $150,000 for individuals.

Used EVs: MAGI of $150,000 or less for joint filers, $112,500 for heads of household, or $75,000 for individuals.

Buyers can use their income from the current or prior year, whichever is lower.

Purchase Rules: The credit is nonrefundable, meaning it only offsets tax liability with no carryover for excess. The used EV credit is limited to once every three years, and the vehicle must be for personal use, not resale.

Vehicle Eligibility

New EVs:Must be plug-in electric or fuel cell vehicles with a battery capacity of at least 7 kWh.

Must be made in North America and meet sourcing requirements for critical minerals and battery components.

Price caps: $80,000 for vans, SUVs, and trucks; $55,000 for sedans and passenger cars.

Qualifying models include select trims of the Tesla Model Y, Nissan Leaf, Ford Mustang Mach-E, and Chevrolet Bolt EV (see IRS FuelEconomy.gov for a complete list).

Used EVs:Must be at least two model years old (e.g., 2023 or earlier for 2025 purchases).

Must have a sale price of $25,000 or less and a gross vehicle weight rating under 14,000 pounds.

Must be purchased from an IRS-registered licensed dealer.

Dealers can verify vehicle eligibility via the VIN on the IRS Energy Credits Online portal, and buyers should confirm income eligibility.

How to Claim the EV Tax Credit

To utilize the credits before they expire:

Purchase or Lease by September 30, 2025: Complete your transaction before the deadline to qualify.

Use Point-of-Sale Option: Since January 2024, buyers can transfer the credit to an IRS-registered dealer for an immediate purchase price reduction. Request a “time of sale report” from the dealer.

File IRS Form 8936: If not transferred to the dealer, claim the credit on your federal tax return using Form 8936 for vehicles purchased before the deadline.

Check State Incentives: Some states offer additional EV rebates or incentives, which may continue post-September 2025. Visit your local DMV or Plug In America for details.

Benefits of EV Ownership

Even after the federal credits end, EVs offer long-term savings. A 2020 study estimated fuel cost savings of up to $7,700 over 15 years compared to gas-powered vehicles, with potential savings exceeding $14,000 in states with low electricity rates. EVs also have lower maintenance needs, reducing ownership costs over time.

Maintaining Your EV with Fresh Start Auto Detail

As a mobile detailing service, Fresh Start Auto Detail brings professional, eco-friendly care to your location. Our services are tailored to EVs, including exterior washing, interior detailing, and optional services like windshield blade replaecement.

We aim to keep your EV in top condition, supporting its longevity and appearance.To schedule a mobile detailing session, visit our website at freshstartautodetail.com

Next Steps Before the Credits Expire

The federal EV tax credits, offering up to $7,500 for new EVs and $4,000 for used ones, end on September 30, 2025. If you’re considering an EV purchase, verify eligibility with your dealer and act soon.

For professional EV care, Fresh Start Auto Detail is ready to serve you at your convenience.

Note: Fresh Start Auto Detail is not a tax advisor. Consult a qualified tax professional or visit IRS.gov for detailed EV tax credit information.