EV Credits Ending September 30, 2025 — What Small Business Owners Need to Know
If you’ve been thinking about adding an electric vehicle (EV) to your business, now is the time to pay attention. Three major federal EV Credits are ending September 30, 2025 — and if you miss the deadline, you could lose out on thousands in potential savings.
On July 4, 2025, the president signed the One Big Beautiful Bill Act, which officially set an end date for these EV Credits. Beginning October 1, 2025, they will no longer be available for vehicles placed in service after September 30.
Which EV Credits Are Ending?
Here’s a breakdown of the three federal EV Credits set to expire:
1. Section 45W – Qualified Commercial Clean Vehicles Credit
Up to $7,500 for light commercial EVs
Up to $40,000 for heavier trucks
Credit is based on the price difference between the EV and a comparable gas-powered vehicle.
2. Section 30D – New Clean Vehicle Credit
Up to $7,500 for qualifying new EVs
Includes requirements for domestic battery and critical mineral sourcing.
3. Section 25E – Previously Owned Clean Vehicle Credit
Up to $4,000 (or 30% of the vehicle’s price) for eligible used EVs.
What “Placed in Service” Means for EV Credits
To claim these EV Credits, your vehicle must be placed in service before the September 30 deadline.
That means it isn’t just purchased — it must be delivered, titled, and ready for business use. Ordering too late could leave you with no credit if supply chain delays push delivery past the deadline.
Why These EV Credits Matter for Small Businesses
For many small businesses, EV Credits have translated into thousands — even tens of thousands — of dollars in tax savings when upgrading fleets, adding delivery vehicles, or replacing older work trucks. Losing them could mean significantly higher costs for any EV purchases later this year or in 2026.
Steps to Take Before the EV Credits Deadline
Evaluate Your Needs – Decide if an EV makes sense for your operations this year.
Research Eligible Vehicles – Make sure the models you’re considering qualify for EV Credits under current IRS rules.
Act Early – Place your order with enough lead time for delivery and titling before September 30.
Confirm Eligibility – Review requirements with your tax professional to ensure you’ll get the EV Credits you expect.
Stay Informed on EV Credits and Tax Law Changes
At Quartermaster, we share updates like this so you have time to make informed decisions — not last-minute scrambles. Whether or not you buy an EV this year, knowing the deadlines for EV Credits means you can plan ahead and maximize potential tax savings.
