Starting July 4, 2025

Big Changes Are Coming: EV Tax Credits Ending & New Auto Loan Tax Deduction

Important federal updates could impact your next vehicle purchase — especially if you're going electric or financing a new car.

Deadline: EV credits end after September 30, 2025

New: Auto loan interest deduction up to $10,000/yr

What’s Changing?

Ending Soon – EV Tax Credits
New EVs: $7,500 (30D), Used EVs: $4,000 (25E), and Commercial/Leased EVs (45W) will no longer be available after September 30, 2025.
New Opportunity – Auto Loan Interest Deduction
Deduct up to $10,000/year in interest on auto loans for new vehicles used for personal purposes, for purchases made Jan 1, 2025 – Dec 31, 2028.
U.S. Assembly Requirement
Vehicle must be built in the U.S. — check the VIN: digits 1, 4, or 5 indicate U.S. assembly.

What This Means for You

Considering an EV? Act before September 30, 2025 to access federal credits.
Financing a new car? You may qualify to deduct interest — potentially saving thousands.
Ask your dealer to confirm eligibility and look for VINs starting with 1, 4, or 5.

Jul 4, 2025

Policy update begins.

Sep 30, 2025

Last day to claim federal EV credits (30D, 25E, 45W).

Jan 1, 2025 – Dec 31, 2028

Window to purchase a new vehicle and deduct up to $10,000/yr of auto loan interest.

New Vehicle

Personal use, financed purchase qualifies for interest deduction.

Purchase Window

Bought between Jan 1, 2025 and Dec 31, 2028.

VIN Starts With 1, 4, or 5

U.S.-assembled vehicle.

Estimate annual tax savings from the auto loan interest deduction.

Estimated Interest Paid This Year (? or $)

Your Marginal Tax Rate (%)

Deductible Interest (capped at $10,000)

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Estimated Tax Savings

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Note: This is a simplified estimate and not tax advice.

Get official updates and run numbers before you buy.

This page is informational only and not tax advice. Consult a qualified professional for your situation.

May not represent actual vehicle. (Options, colors, trim and body style may vary)

The Manufacturer's Suggested Retail Price excludes tax, title, license, dealer fees and optional equipment. Dealer sets final price.