How many times can you claim the $7,500 EV tax credit?

You can claim the federal $7,500 New Clean Vehicle Credit any number of times over the years—once for each qualifying new vehicle you buy and place in service—so long as each purchase meets the rules. You cannot claim the credit more than once for the same vehicle, and leased cars generally don’t let the consumer claim this credit because the lessor takes it. Below, we explain how this works, key eligibility conditions, and common pitfalls.

What the $7,500 credit is—and how it’s determined

The New Clean Vehicle Credit (Internal Revenue Code §30D) provides up to $7,500 for qualifying new electric vehicles placed in service during the tax year. The amount is split into two $3,750 components tied to battery sourcing rules (critical minerals and battery components). Final assembly must be in North America, price caps and income limits apply, and eligibility can change as manufacturers adjust supply chains.

How many times you can claim it

There’s no lifetime or annual cap per taxpayer on the New Clean Vehicle Credit. You may claim it multiple times across different qualifying vehicles, including multiple purchases in the same year, provided each vehicle independently qualifies and has not had the credit claimed before. The credit is a one-time benefit per vehicle and cannot be claimed again for that same VIN. If you lease, the dealer/lessor generally claims a separate commercial credit; you may receive an incentive as lower lease payments, but you don’t file for the $7,500 yourself.

What that means in practice

If you buy one eligible new EV this year and another eligible new EV next year, you can claim the credit both times. If you and your spouse (filing jointly) buy two qualifying new EVs in the same tax year, you can claim the credit for each vehicle—again, once per vehicle—subject to income, MSRP, and other rules. By contrast, the used clean vehicle credit (a different program) has a once-every-three-years rule for the taxpayer; the new vehicle credit does not.

Key eligibility rules you must meet

The following list summarizes the rules that determine whether you can claim the credit for a given vehicle. These details matter because they control whether you can legitimately claim the credit again on another purchase.

• Original use: You must be the first owner; the vehicle can’t be purchased for resale.
• Final assembly: Must occur in North America.
• Battery sourcing: Vehicles must meet critical mineral and battery component requirements to qualify for up to $7,500 (some models qualify for $3,750).
• MSRP caps: $55,000 for cars; $80,000 for vans, SUVs, and pickup trucks (as configured at purchase).
• Income limits (MAGI): Under $300,000 (married filing jointly), $225,000 (head of household), or $150,000 (single or married filing separately). You can use current-year or prior-year MAGI, whichever is lower.
• Tax liability vs. point-of-sale: If you claim on your return, the credit is nonrefundable and limited by your tax liability. If you transfer the credit to the dealer at point of sale (available since 2024), you can receive the full amount upfront if you meet the rules; if your income later proves too high, you must repay it when you file.
• VIN and seller report: The seller must submit a time-of-sale report to the IRS and provide you with a copy; you must include the VIN on your return.
• Leases: For most consumer leases, the $7,500 is claimed by the lessor under the Commercial Clean Vehicle Credit; consumers don’t file for §30D on a lease.

If each new purchase satisfies these conditions, you can claim the credit again—once per qualifying vehicle—without any lifetime limit.

Point-of-sale transfer, leases, and business use

Since January 1, 2024, eligible buyers can transfer the credit to a registered dealer at the point of sale for an immediate price reduction or cash equivalent. If your MAGI later exceeds the limit or the deal wasn’t properly registered, you’ll have to repay the advance on your tax return. For leases, the finance company (lessor) typically claims the commercial credit and may pass savings to you through lower payments. Businesses purchasing vehicles can generally choose between claiming §30D (new clean vehicle) or §45W (commercial clean vehicle), but not both.

How to claim it

To successfully claim the credit for each qualifying vehicle, follow the steps below. This process helps ensure you can repeat the claim on future eligible purchases.

1. Confirm eligibility: Check that the specific trim meets final assembly, battery sourcing, and MSRP rules (details change; verify the VIN and model/trim on the IRS-approved list via fueleconomy.gov or manufacturer disclosures).
2. Verify income: Ensure your MAGI (current year or prior year, whichever is lower) is within the limits.
3. Obtain seller documentation: Get the time-of-sale report and keep it with your records; confirm the dealer is registered for point-of-sale transfers if you choose that option.
4. File the forms: Use Form 8936 (and include the VIN) with your federal income tax return if you didn’t transfer at point of sale. If you did transfer, report it as instructed; repayment may be required if you’re ineligible.
5. Retain records: Keep purchase agreements, VIN, seller report, and any IRS correspondence in case of audit.

Repeat these steps for each qualifying new vehicle you purchase; each vehicle stands on its own for eligibility and documentation.

Common pitfalls that can cost you the credit

Given that eligibility standards shift and differ by trim and build, it’s easy to make avoidable mistakes. The following list flags frequent issues.

• Assuming a model qualifies without checking the exact trim/VIN after a rules change.
• Exceeding income limits and then needing to repay a point-of-sale advance.
• Buying a vehicle above the MSRP cap for its class.
• Trying to claim the credit for a leased vehicle as the lessee.
• Missing or incorrect seller time-of-sale reporting to the IRS.
• Confusing the new (§30D) and used (§25E) credits; the used credit has a once-every-three-years taxpayer limit, but the new credit does not.

Avoiding these mistakes helps ensure you can claim the credit now and again on future qualifying purchases.

Where to check eligibility before you buy

Because battery sourcing and FEOC restrictions can change which trims qualify—and Treasury’s rules tightened in 2024 and again in 2025—verify the latest status before purchase. Use the IRS and Department of Energy resources and ask your dealer for the official time-of-sale confirmation tied to your VIN.

Summary

You can claim the federal $7,500 New Clean Vehicle Credit multiple times—once per qualifying new vehicle—with no lifetime cap. The same vehicle can’t generate the credit twice, and leases generally route the benefit to the lessor. Each claim depends on that vehicle’s eligibility, your income, the MSRP cap, and proper dealer reporting; if those boxes are checked, you can claim the credit again on your next qualifying EV.

How often can you take the EV tax credit?

Each vehicle is eligible for one new EV tax credit and one used EV tax credit. The EV purchaser must be a taxpayer who is not a dependent of another taxpayer.

How to claim $7500 EV tax credit every year?

File Form 8936 with your tax return
You must file Form 8936 when you file your tax return for the year in which you take delivery of the vehicle. This is true whether you transferred the credit at the time of sale or you’re waiting to claim the credit when you file.

Can you get the EV tax credit 2 years in a row?

Qualifying for an IRS used EV tax credit
You can claim the credit once every three years. Your modified AGI must be less than $150,000 (for Married Filing Jointly and Qualifying Surviving Spouse filers), $112,500 (for Head of Household filers), or $75,000 for all other filers.

What is the loophole for the 7500 EV lease credit?

Because commercial vehicles are exempt from those restrictions, dealers can apply the credit to nearly any EV and pass the savings along to customers — even for models or buyers that wouldn’t otherwise qualify. It’s often referred to as a loophole by industry insiders.