2025 Federal EV Tax Rebate Updates

January 13, 2025

Are you thinking about buying an electric vehicle (EV) in 2025? With updated federal incentives, now is the perfect time to make the switch to an EV. Whether you’re buying new or used, understanding these incentives can save you thousands. In this blog, we’ll break down the federal EV rebates, explain how to qualify, and highlight the vehicles that qualify—especially those available at Dick Hannah Dealerships. 

What is the Federal EV Rebate Program? 

The federal EV rebate program offers significant savings:

Who Can Qualify for the Federal EV Rebate? 

To qualify for the rebate when buying a new EV, you must meet the following criteria: 

1. Personal Use: The vehicle must be purchased for personal use, not for resale. 
2. Income Limits: Your modified adjusted gross income (AGI) must not exceed: 
   1. $300,000 for married couples filing jointly 
   2. $225,000 for heads of households 
   3. $150,000 for all other filers 

You can use your AGI from the year you buy your EV or the previous year. If you’re unsure whether you qualify, consult your tax professional or visit FuelEconomy.gov. 

How Do I Claim the Federal EV Rebate? 

For EVs Purchased Before January 1, 2024: 

– File IRS Form 8936 with your tax return to claim your credit. 

For EVs Purchased On or After January 1, 2024: 

You have two options: 

1. Claim the rebate on your annual tax return using Form 8936. 
2. Transfer the credit to the dealership at the time of purchase, applying it directly to the final price of the vehicle. 

Even if you transfer the credit to the dealership, you’ll still need to file Form 8936 to report the transaction. 

What Are the Requirements for Vehicles to Qualify? 

For a vehicle to qualify for the federal rebate, it must meet these requirements: 

• Battery Capacity: Minimum of 7 kilowatt-hours (kWh) 
• Weight: Gross vehicle weight under 14,000 pounds 
• Manufacturer: Made by a qualified manufacturer 
• Assembly: Vehicle must be assembled in the U.S. 
• Materials: Meet battery material sourcing requirements for the full $7,500 credit 
• Price Limits: 
  • $80,000 for SUVs, trucks, and vans 
  • $55,000 for sedans and other vehicles 

For a detailed and up-to-date list of all qualifying vehicles, visit FuelEconomy.gov. 

Which Vehicles Are Eligible for the 2025 Federal EV Rebate? 

Many EVs qualify for the 2025 federal rebate. Below, we’ve highlighted the models available at Dick Hannah Dealerships that qualify for the program. If you’re considering one of these models, stop by one of our dealerships to take a closer look. 

Note: While these are the vehicles we carry, other models from manufacturers may also qualify. Check FuelEconomy.gov to verify eligibility for other brands. 

Can I Get a Tax Credit for a Used EV? 

Yes! The federal government offers a credit of up to $4,000 for used EVs. This rebate equals 30% of the vehicle’s sale price, up to the $4,000 cap. 

Who Qualifies for the Used EV Credit? 

To qualify, you must meet these criteria: 

1. Personal Use: The vehicle must be purchased for personal use, not resale. 
2. Ownership: You must be at least the second owner. 
3. Dependency Status: You cannot be claimed as a dependent on someone else’s taxes. 
4. No Recent Claims: You must not have claimed the EV credit in the past three years. 
5. Income Limits: 

• $150,000 for married couples filing jointly 
• $112,500 for heads of households 
• $75,000 for all other filers 

What Used Vehicles Qualify for the EV Credit? 

A used EV must meet these requirements: 

• Price: Sale price of $25,000 or less 
• Age: At least two years older than the current model year 
• Usage: Primarily used in the U.S. 
• Weight: Gross vehicle weight under 14,000 pounds 
• Battery: Minimum capacity of 7 kWh 

Visit FuelEconomy.gov to see if your preferred used EV qualifies. 

Are There Additional Incentives in Oregon and Washington? 

Yes! In addition to federal rebates, both Oregon and Washington offer state-level EV incentives to make ownership even more affordable. 

• Washington: Visit Climate.WA.gov for current rebates and programs. 
• Oregon: Visit GoElectric.Oregon.gov for the latest incentives. 

Why Buy Your EV From Dick Hannah Dealerships? 

At Dick Hannah Dealerships, we make it easy to transition to electric driving. With locations across Portland, Vancouver, Sandy, and Longview, we offer a wide selection of new and used EVs that qualify for federal and state incentives. 

Our knowledgeable team is here to help you understand the programs, find the perfect EV, and maximize your savings. 

Ready to Go Electric? 

Contact us today or visit one of our dealerships to explore our inventory of electric cars and trucks. Let’s drive into the future together!

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