EV Tax Credit Calculator
The federal EV purchase credit expired September 30, 2025 (OBBB §70502). Estimate remaining 2026 EV-related tax benefits: the auto loan interest deduction (§70203) and §30C home charger credit.
The federal EV purchase credit under IRC §30D was terminated by OBBB §70502, effective September 30, 2025. New EV purchases after that date no longer qualify for the $7,500 new-EV credit or the $4,000 used-EV credit (§25E). Commercial EV credits (§45W) were similarly eliminated for vehicles placed in service after the termination date.
Two EV-related tax benefits remain for 2026: (1) the OBBB §70203 auto loan interest deduction — up to $10,000 of qualifying auto loan interest on a US-assembled vehicle, phasing out above $100,000 MAGI Single / $200,000 MFJ; and (2) the §30C residential charger credit — 30% of installation cost, up to $1,000 for home EV chargers.
Worked example: 2026 EV buyer, $8,000 annual auto loan interest, $80,000 MAGI Single. Auto loan deduction = min($8,000, $10,000) × (1 − phase-out) = $8,000 (below threshold). At 22% marginal rate, tax savings ≈ $1,760 (per OBBB §70203).
How to use this calculator
- Enter your vehicle purchase date to determine EV credit eligibility (expired 9/30/2025).
- Enter auto loan interest paid to estimate the OBBB §70203 deduction (up to $10,000).
- Enter EV charger installation cost if applicable for the §30C credit (30%, max $1,000).
- Select your marginal tax rate to see estimated tax savings from deductions.
Formula and assumptions
EV purchase credit: $0 if purchase date > 2025-09-30 (OBBB §70502) Auto loan deduction = min(loanInterestPaid, $10,000) Auto loan tax savings = deduction * marginalRate §30C charger credit = min(chargerCost * 0.30, $1,000) if qualifies Total benefit = evCredit + autoLoanSavings + chargerCredit
- EV credit termination
- OBBB §70502: §30D/§25E/§45W expired 9/30/2025
- Auto loan deduction
- OBBB §70203: up to $10K interest, US-assembled vehicles, 2025–2028
- §30C charger
- 30% of cost, $1,000 residential cap
- MAGI phase-outs
- Auto loan deduction phase-out not modeled (simplified)
Worked example
EV purchased January 2026, $8,000 loan interest, $1,500 charger, 22% rate
Limitations
- EV purchase credits terminated 9/30/2025 — no §30D, §25E, or §45W credit for post-deadline purchases.
- Auto loan deduction requires US-assembled qualifying vehicle — not all vehicles qualify.
- §30C charger eligibility requires installation at primary or secondary residence; commercial chargers have different caps.
- Auto loan phase-out thresholds not fully modeled here.
- Educational estimate only — not professional tax advice.
Frequently asked questions
Federal EV purchase credits expired September 30, 2025 under OBBB §70502. For 2026 EV buyers, available benefits include the OBBB auto loan interest deduction (up to $10,000) and the §30C home charger credit (30% of cost, $1,000 max).
Recent updates
- Oct 2025EV purchase credits (§30D, §25E, §45W) confirmed terminated per OBBB §70502 effective 9/30/2025.
- Jul 2025OBBB §70203 auto loan interest deduction added; §30C charger credit cap confirmed at $1,000.
- May 2025Pre-launch draft modeled EV credit phase-out timeline based on OBBB bill text.