US EV Tax Credit Loophole — Make Sure You Complete The Loop

It’s been a while since the $7,500 US tax credit for electric vehicles was ended, but the story is not over yet.

As we noted a few months ago, a loophole was added, or confirmed, toward the end of the 3rd quarter. People who bought an EV before October 1 could still qualify for the $7,500 tax credit even if it wasn’t delivered before then.

I thought it was indicated at the time, though, or maybe just implied, that you’d need to receive the vehicle before the end of the year. “As long as you have a “binding written contract” and put down an initial payment for an EV by the end of September 30, the IRS has decided that you are eligible to receive the tax credit. (Some of presumed this clarification or change was to help Tesla, which can easily take in orders for new vehicles since it sells directly to customers.),” I wrote. “Ford and GM, after discussions with the IRS according to Reuters, have decided they’ll buy a bunch of electric vehicles themselves and then sell them to their auto dealers to lease to customers at a discount in coming months. […] Now, EV shoppers can at least get great deals on leases in coming months, through December 31, 2025, via Ford Credit, reportedly.”

Now, however, there does seem to be confirmation that you better take delivery of any vehicle you ordered expecting to get the $7,500 tax credit before January 1, 2026.

“We confirmed with a Tesla Sales Advisor that any current orders that have the $7,500 tax credit applied to them must be completed by December 31, meaning delivery must take place by that date,” Teslarati writes. “However, it is unclear at this point whether someone could still claim the credit when filing their tax returns for 2025 as long as the order reflects an order date before September 30.” I wouldn’t count on it.

How many EV buyers purchased their cars (at least putting a down payment on them) before October but haven’t received them yet? I assume not many. However, it appears there is still a specific group of Tesla buyers who are waiting on their cars. “This puts some buyers in a strange limbo, especially if they placed an order for the Model Y Performance. Some deliveries have already taken place, and some are scheduled before the end of the month, but many others are not expecting deliveries until January.” It does make me wonder if there are buyers of any other specific trims who are awaiting delivery, and perhaps sweating about potentially losing the $7,500 tax credit they were counting on.