$7,500 Federal Tax Credit: Which EVs Qualify in 2025

EV incentives have gotten complicated with all the eligibility requirements, income limits, and manufacturer changes flying around. As someone who tracks these programs closely, I learned everything there is to know about what’s actually available. Today, I will share it all with you.

Federal Tax Credit Basics

Probably should have led with this section, honestly—the federal credit is the biggest incentive available:

• Up to $7,500 for new qualifying EVs
• Up to $4,000 for used EVs (different rules)
• Income limits apply
• Vehicle price caps apply

Northwest State Incentives

That’s what makes Northwest EV ownership endearing to us deal-seekers—state incentives stack on top:

• Washington: Sales tax exemption on EVs (significant savings)
• Oregon: Up to $2,500 rebate, plus $2,500 more for lower incomes
• Utility rebates: PSE, PGE, and others offer $300-600 for home chargers

Charger Installation Credits

The federal government also offers 30% tax credit (up to $1,000) for home charger installation. Combined with utility rebates, this can cover half your installation costs.

Stay Current

Incentives change frequently. Qualifying vehicle lists update. Income limits adjust. Always verify current eligibility before purchasing. The IRS website and state energy departments have authoritative information.