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.