New York, 25 August (Kiran News). Buyers looking to purchase electric vehicles (EVs) from Tesla, GM, Ford, and other manufacturers now have additional time to benefit from the federal EV tax credit before its scheduled expiration. The One Big Beautiful Bill Act (OBBB) had earlier set a hard deadline of September 30 for claiming the $7,500 federal EV tax credit, leading automakers and buyers to believe that both contract signing and vehicle delivery had to occur before this date.
However, new guidance issued by the IRS has clarified that the definition of “acquired” under the law does not strictly require delivery before the deadline. According to the IRS, if a buyer enters into a written binding contract and makes a payment on or before September 30, 2025, they will still be eligible to claim the credit when the vehicle is placed in service—even if actual delivery happens after the deadline.
When buyers take possession of the vehicle after the deadline, they are required to obtain a “time of sale report” from the dealer and submit it through the Energy Credits Online portal. This allows buyers to secure their tax credit by signing the contract and paying a deposit in time, even if the manufacturer does not have inventory ready for immediate delivery. This rule is expected to boost EV sales for automakers.
According to the latest report from Cox Automotive, new EV sales in July increased by 26.4% month-over-month and 19.7% year-over-year, reaching 130,082 units and pushing the EV market share to 9.1%. July was the second-highest month on record, with 11 brands achieving their best EV sales of the year as buyers rushed to take advantage of the tax credit before its expiration.
Cox Automotive also found that the days of supply for new EVs dropped sharply to 87 days, down 32.3% month-over-month and 49% year-over-year, indicating that a supply crunch could have posed problems for both buyers and manufacturers as demand surged in August and September.
Stephanie Valdez Streaty, director of insights at Cox Automotive, stated, “With the IRA tax credit set to expire at the end of September, urgency is likely to remain high, positioning the EV market for continued strength through the remainder of Q3.” Once the tax credit is gone and deliveries are completed, EV sales are expected to decline sharply in the fourth quarter.
My name is Bhupendra Singh Chundawat. I am an experienced content writer with several years of expertise in the field. Currently, I contribute to Daily Kiran, creating engaging and informative content across a variety of categories including technology, health, travel, education, and automobiles. My goal is to deliver accurate, insightful, and captivating information through my words to help readers stay informed and empowered.
Leave a Comment