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Urgent: Want an Electric Vehicle? Act by September 2025
As a business owner or self-employed professional, if you are contemplating investing in an electric vehicle, read this before you make a decision.
The U.S. Senate passed the tax bill version on 1 July, terminating three crucial clean vehicle tax credits after September 30, 2025.
The three credits on the chopping block
The legislation targets the following three electric vehicle tax credits.
- Section 45W-Qualified Commercial Clean Vehicles Credit. Upto $7,500 for light commercial electric vehicles and upto $40,000 for heavier trucks, based on the incremental cost over a comparable gas-powered vehicle.
- Section 30D- New Clean Vehicle Credit. Upto $7,500 for qualifying new electric vehicles. Requirements include domestic sourcing for critical minerals and battery components.
- Section 25E:- Previously Owned Clean Vehicle Credit. Upto $4,000 (or 30 percent of the vehicle’s price) for eligible used electric vehicles.
What the new legislation proposes
The Senate bill eliminates all three credits for vehicles placed in service after September 30, 2025. The U.S. House of Representatives bill had called for a December 31, 2025, demise with extra time for certain automakers.
But at the moment, the House bill is not in play. The House will vote on the Senate bill to ensure the finished bill is sent to the president on or before July 4.
July 5 update: The U.S. House of Representatives passed the Senate version on July 3. The president signed the new law on July 4.
Act now
BergerCPAFirst, with over 30+ years of experience, offers comprehensive tax preparation services for individuals and businesses nationwide. Our commitment is to provide personalized attention while ensuring compliance and maximizing tax benefits. If you have any questions or would like to schedule a consultation, please call (201) 587-9200 or send us an inquiry.
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