How else can you save on an electric vehicle (EV) purchase? We’ve compiled a few helpful links to help you further reduce the cost of purchasing and operating your new EV.
Federal Tax Credit
Up to $7,500 – Expires 9/30/2025
The Federal EV Tax Credit will sunset on September 30, 2025, per the federal legislation signed on July 4, 2025.
Individuals intending to purchase or lease a qualifying EV must complete their transaction on or prior to September 30 to receive the tax credit.
Note: Charge Up New Jersey and other state programs will continue to offer incentives after September 30, or until funding is exhausted. Qualifying New Jersey residents can claim their state EV incentive by taking the following actions:
- Charge Up New Jersey applicants should speak with an eligible dealership.
- Charge Up+ applicants must prequalify prior to speaking with an eligible dealership.
Note that prequalification is not instantaneous and can take up to 10 business days to process. Please apply early to finalize the purchase or lease process prior to September 30, 2025. Prequalification IDs are good for 120 days as program funding remains. Retroactive incentives are not allowed – applicants should not take delivery of their vehicle before receiving a prequalification ID.
Charge Up New Jersey is not a tax credit program, but a separate EV incentive program. For eligibility requirements and applicable deadlines, please see the eligibility guidelines. Review the Program Terms and Conditions for full program information.
Federal Tax Credit Details
Battery and plug-in hybrid electric vehicles purchased new in 2023, or after, may be eligible for an income-based tax credit up to $7,500 from the federal government. Tax credit eligibility depends on multiple factors such as:
- Vehicle MSRP
- Final assembly location
- Battery component and/or critical minerals sourcing
- Your modified adjusted gross income (MAGI)
Visit fueleconomy.gov to check out the breakdown of tax credit amounts.
As of January 1, 2024, the federal income tax credit must be initiated and approved at the time of sale. Dealers are required to provide certain information to vehicle buyers and must submit a time of sale report to the IRS. Read IRS publication 5900 to learn more.
If you lease your EV, the tax credit goes to the leasing entity. However, dealerships often factor the tax credit into the cost of the lease, lowering your down payment or monthly payments. Ask your sales representative how your tax credit will be applied.