EV Tax Credit Calculator (Section 30D)
Determine eligibility and amount of the federal Section 30D New Clean Vehicle Credit for your specific EV purchase in 2026.
How the Section 30D EV Tax Credit Works in 2026
The Section 30D New Clean Vehicle Credit (created by IRA 2022, extended/clarified by OBBB 2025) provides up to $7,500 in federal tax credit for qualifying new electric vehicles. The credit splits into two $3,750 halves: critical minerals sourcing and battery components sourcing — each must independently meet escalating North American/Free Trade Partner requirements.
Beginning in 2024, the credit transferred at point-of-sale to dealers, who reduce the price by $7,500 immediately rather than waiting for tax filing. The dealer transfer is now the dominant way buyers claim the credit. Source: IRS Section 30D, Form 8936 instructions. Last updated: May 2026.
MSRP and Income Caps for 2026
| Vehicle Type | MSRP Cap |
|---|---|
| Cars / Sedans | $55,000 |
| SUVs / Vans / Pickup Trucks | $80,000 |
| Filing Status | Modified AGI Cap |
|---|---|
| Single | $150,000 |
| Head of Household | $225,000 |
| Married Filing Jointly | $300,000 |
Critical: you may use the LOWER of current-year or prior-year AGI — if you had a high-income year recently followed by a lower year, you may qualify via the prior year's number.
Battery and Critical Minerals Sourcing Rules
The $3,750 critical minerals portion requires increasing percentages of battery minerals from US or Free Trade Agreement partners (40% in 2024, 50% in 2025, 60% in 2026, 70% in 2027, 80% in 2028+). The $3,750 battery components portion requires manufactured/assembled North America (50% in 2024, 60% in 2025, 60% in 2026, 70% in 2027, 80% in 2028, 90% in 2029, 100% in 2030).
Vehicles vary in which halves they qualify for. Check fueleconomy.gov's qualified vehicle list — updated quarterly by IRS. As of mid-2026, most US-made Teslas, Ford F-150 Lightning, Chevy Equinox EV, and Cadillac Lyriq qualify for the full $7,500. Many imported brands qualify for partial $3,750 or zero.
Used Clean Vehicle Credit — Section 25E
Separate credit (Section 25E) for used EVs: 30% of sale price up to $4,000, available on used EVs purchased from licensed dealers. Vehicle must be at least 2 model years old, under $25,000 sale price, and the buyer's modified AGI must be under $75K single / $150K MFJ / $112,500 HoH. This is the only way to claim a federal credit on a Tesla Model 3 or other popular EV bought used.
EV Tax Credit $7,500 Calculator: Point-of-Sale vs Form 8936 Refund Timing
The single biggest decision on the Section 30D credit in 2026 is how you take it, not whether you qualify. Point-of-sale transfer means the dealer knocks $7,500 off the sticker at signing and gets reimbursed by IRS within 72 hours. Form 8936 at tax-filing means you pay the full price now and get the $7,500 back via your return. Point-of-sale wins for three groups: (1) buyers whose Section 30D tax liability is below $7,500 — the credit is non-refundable at filing so any excess is lost, but the dealer transfer pays the full amount regardless; (2) buyers financing the EV — the $7,500 reduction lowers the loan principal and saves interest; (3) anyone who wants the cash today, not next April. Form 8936 wins only when you want to claim other IRA-linked credits (like Residential Clean Energy) on the same return and stack the reconciliation. Confirm the dealer is registered on the IRS Energy Credits Online (ECO) portal before signing.
Last updated 2026-07-01. Sources: IRS Clean Vehicle Tax Credits, Form 8936, fueleconomy.gov qualified vehicles, IRC §30D + §25E.
Frequently Asked Questions
Which EVs qualify for the full $7,500 in 2026?
As of mid-2026, full credit qualifiers include Tesla Model Y (US-made trims), Tesla Model 3 (Performance and Long Range), Ford F-150 Lightning, Chevy Equinox EV, Chevy Blazer EV, Cadillac Lyriq, and Volkswagen ID.4 (Chattanooga-built). Check fueleconomy.gov for the current quarterly list \u2014 assembled vehicles change frequently.
Can I get the EV credit at the dealership upfront?
Yes \u2014 and it's the recommended approach. Since January 2024, the credit transfers at point-of-sale to a registered dealer who reduces the price by $7,500 immediately. The dealer gets reimbursed by IRS. You don't have to wait until tax filing. Confirm the dealer is registered before signing.
What is modified AGI and where do I find it?
Modified AGI for EV credit purposes = AGI from Form 1040 line 11 plus certain foreign income exclusions. For most filers, MAGI equals AGI. You use the LOWER of current-year or prior-year MAGI \u2014 beneficial if you had income volatility.
Do I get the credit if I lease an EV?
The credit goes to the leasing company (lessor), not you. However, most leasing companies pass the benefit to the lessee through reduced lease payments \u2014 typically saving $80-$130/month on the lease. The lease pathway also has no MSRP or income caps, allowing higher-end EVs and high-income buyers to indirectly benefit.
What if my federal tax liability is less than the credit?
If you take the credit on Form 8936 at filing time, it's non-refundable \u2014 you can only use it to reduce your tax liability to zero, but any unused portion is forfeited. If you transfer the credit at point-of-sale, however, the dealer gets paid the full $7,500 by IRS regardless of your tax liability \u2014 making point-of-sale much better for low-tax-liability buyers.
Is the EV credit per buyer or per vehicle?
Per purchase. You can claim it for each qualifying EV you purchase (multiple times per year if you buy multiple qualifying vehicles). However, the IRS limits the New Clean Vehicle Credit to two claims per year per Social Security Number to prevent flipping.
Should I take the $7,500 EV tax credit at the dealership or at tax filing?
Point-of-sale wins for almost everyone. The dealer knocks $7,500 off the price at signing and IRS reimburses the dealer directly — you get the full $7,500 regardless of your tax liability. Form 8936 at filing is non-refundable, so if your federal tax owed is under $7,500 you lose the difference. Only choose Form 8936 if you specifically need to reconcile the credit against other IRA credits (like Residential Clean Energy) on the same return.
What happens if my income goes over the AGI cap AFTER I take the EV credit at point-of-sale?
You must repay the credit on your tax return via Form 8936. The IRS lets you use the LOWER of current-year or prior-year MAGI to qualify, so plan ahead if a bonus or one-time gain will push you over. Common trap: buyers who take point-of-sale in January using prior year MAGI, then have a spike in earnings, discover repayment at April filing. Track expected AGI before signing and skip the point-of-sale option if the current year looks borderline over the $150K/$225K/$300K threshold.