Image: Tesla
Tesla buyers in the U.S. just got some welcome news: the $7,500 federal EV tax credit isn’t disappearing as quickly as many feared.
According to newly updated Internal Revenue Service (IRS) guidance, customers who enter into a binding contract for an EV and make a payment — whether that’s a down payment, deposit, or even a trade-in — before September 30, 2025, will be considered to have “acquired” the vehicle. That means they’ve officially locked in eligibility for the $7,500 credit and can claim it later, even after the federal incentive expires at the end of next month.
There is one catch: the credit won’t be available until the car is actually “placed in service”. In other words, delivery must still occur, and the dealer has to provide a time-of-sale report. But with acquisition secured in advance, customers can delay delivery until later, effectively extending access to the credit beyond the official cutoff date.
The timing couldn’t be more significant for Tesla and other automakers. Demand for electric vehicles has surged this summer as buyers scramble to take advantage of the incentive before it disappears. Tesla has already extended delivery estimates for the Model 3 and Model Y in the U.S., a clear sign of order backlogs. Now, with the IRS update giving shoppers more flexibility, the rush is only expected to intensify.
For customers, the guidance means less pressure to settle for whatever’s available. Buyers can now lock in the credit and still take their time choosing configurations, trims, and paint colours, knowing they won’t lose out on the $7,500 incentive.
With the deadline just weeks away, expect to see a wave of new contracts signed as Tesla and its EV rivals gear up for one last tax-credit rush. Order your Tesla today to lock in the $7,500 federal EV tax credit before it expires.
