The federal EV tax incentives that have helped make electric vehicles more affordable have changed recently. While the Inflation Reduction Act (IRA) previously offered up to $7,500 toward new EV purchases at the point of sale, key provisions have now expired or shifted under recent legislation.
Here’s a breakdown of what applies as of 2026:
🏛️ Federal EV Tax Credits — Status in 2026
❌ Federal EV Tax Credits Expired:
The federal tax credit that provided up to $7,500 for new EVs and the related $4,000 used EV credit under the Clean Vehicle Credit (IRC 30D/25E) officially ended on September 30, 2025. Vehicles acquired after that date do not qualify for these credits.
- Under older rules, buyers could receive these credits at point of sale (as a discount or rebate) if the dealer was registered and submitted the required report — but that only applied before the expiration.
- It’s no longer possible to claim the federal EV purchase or used EV tax credit for vehicles bought after September 30, 2025.
🟡 Important Note: There were interim policy efforts and proposals to extend or modify these credits, including dealer and manufacturer strategies to preserve incentives temporarily — but as of 2026, the standard federal EV credits have expired unless new laws are enacted to reinstate them.
🌎 State & Local EV Incentives
Even though the federal credit has ended, state and utility incentives may still apply and make EV ownership more affordable — especially when combined with local charging rebates.
📍 Kansas State Incentives
- Some states offer their own EV incentives, such as tax credits, rebates, or charging incentives. In Kansas, certain programs can still provide rebates or incentives for EV purchases, depending on eligibility and utility participation.
📍 Nearby States & Midwest Programs
- Illinois: Rebates up to $4,000 for new or used EVs.
- Other states (e.g., Colorado, Connecticut, Oregon) offer rebates or tax credits that vary by location and income.
- Utility companies (even in Kansas) sometimes provide charger rebates for Level-2 chargers or time-of-use rate benefits.
⚠️ Check local eligibility carefully — state incentive amounts and rules can change year to year, and not all programs are available everywhere.
⚡ Electric Vehicle Charger Credits
While the big EV purchase credits have expired, other energy credits related to charging equipment (like home charger installations) may still apply for equipment placed into service before the end of June 30, 2026 under older rules — depending on past eligibility and installation timing.
🧠 Key Takeaways for EV Buyers in 2026
✅ Federal EV tax credits for vehicles are no longer available after September 30, 2025.
✅ State incentives and utility rebates may still apply, especially in nearby states like Illinois or through charging utility programs.
✅ Always verify eligibility with a tax professional and check current state/utility programs — incentives change frequently.
🚗 How McCarthy Chevy Olathe Can Help
Even with federal credits expired, EV ownership can still be attainable thanks to competitive pricing, dealership specials, and ongoing state/local incentives. At McCarthy Chevy Olathe, we can help you:
👉 Understand which incentives apply to specific EV models
👉 Explore any available state or utility rebates
👉 Maximize savings through dealer programs and manufacturer offers
