IRS Gives Flexibility on $7,500 EV Tax Credit Ahead of Sept. 30 Deadline

The $7,500 federal EV tax credit is officially on its way out. Thanks to the One Big Beautiful Bill Act, the credit will expire on September 30. For buyers hoping to take advantage of it one last time, the deadline has felt like a race against the clock.

But this week the IRS added some much-needed clarity. Shoppers don’t necessarily need to have their new EV in the driveway by the end of September. Instead, the agency confirmed that entering a binding purchase contract before September 30 can lock in the credit, even if the vehicle isn’t delivered until later.

To qualify, buyers must also make a payment before the deadline. The IRS explained that this can include a downpayment or even a trade-in. The credit itself won’t be applied until the car is delivered, but the contract date, not the delivery date, will be what matters for eligibility.

For anyone considering a Rivian or another EV, the message is clear: don’t wait. If you want the credit, make sure you’ve signed a binding contract and put money down before September 30. Delivery can come later, but the paperwork and payment can’t.