In short: The $7,500 federal clean vehicle credit (and the $7,500 commercial credit used for leases) ended for vehicles acquired after September 30, 2025. What is left for US buyers: a federal deduction for car loan interest, Tesla’s promotional financing, cheaper Standard trims, and a shrinking list of state and utility programs.

What ended on September 30, 2025

  • New clean vehicle credit (30D): up to $7,500 on a new EV.
  • Used clean vehicle credit (25E): up to $4,000 on a used EV.
  • Commercial clean vehicle credit (45W): the credit leasing companies used to pass on $7,500 in lease deals.

The cutoff is based on when the vehicle was acquired: a binding contract and payment on or before September 30, 2025. Any site still advertising $7,500 off a new Tesla is out of date. The home charger credit (30C) followed: it only covers equipment placed in service before July 1, 2026.

What replaced it

The car loan interest deduction

For 2025 to 2028, interest on a loan for a new US-assembled personal vehicle is deductible up to $10,000 a year, phasing out above $100,000 of modified AGI ($200,000 joint). Leases do not qualify. US-market Model 3 and Model Y are assembled in Fremont, California or Austin, Texas. The IRS published final rules in September 2026. You do not need to itemize, but you must report the vehicle’s VIN. Check the VIN with NHTSA’s decoder to confirm US final assembly, and ask a tax professional about your situation.

Tesla’s own pricing and offers

  • Cheaper trims: the Model 3 Standard ($36,990) and Model Y Standard ($39,990) launched after the credit ended.
  • Promotional financing: about 2.49% for 72 months on most Model Y trims in late October 2026, though the 0% offer ended in July. See current financing rates.
  • Referral perk: 3 months of FSD (Supervised) on a new Model 3 or Model Y ordered through a referral link. See the US referral program.

State incentives still paying

Most state EV rebates have ended or paused. On the states we track, the ones with a program listed as available or open in windows are:

  • New Jersey: Charge Up New Jersey (FY27), Home charger rebate
  • Massachusetts: MOR-EV Standard (new EVs)
  • Michigan: DTE Charging Forward, Consumers Energy PowerMIDrive
  • Virginia: Dominion EV Charger Rewards
  • Texas and Illinois: rebates offered in limited application windows

California’s CVRP, Georgia’s credit and Pennsylvania’s rebate have ended, and Virginia’s was never funded. Utilities often still pay toward a home charger or offer cheap overnight rates. The full list with dates is on each state page, and the out-the-door effect is in Tesla price by state.

Lease or finance now?

With the lease credit gone and the interest deduction only for loans, financing has become relatively more attractive than in 2024. The numbers are in Tesla lease vs finance in the US.

Frequently asked questions

Can I still get the $7,500 tax credit on a Tesla?

No. The federal clean vehicle credit ended for vehicles acquired after September 30, 2025. The used EV credit and the commercial credit that funded lease discounts ended on the same date.

What is the car loan interest deduction?

For 2025 to 2028, interest on a loan for a new US-assembled personal vehicle is deductible up to $10,000 a year, phasing out above $100,000 of modified AGI ($200,000 joint). Leases do not qualify. US-market Model 3 and Model Y are assembled in Fremont, California or Austin, Texas. It is available whether or not you itemize, and you report the VIN on your return.

How much does the loan interest deduction save?

Your marginal tax rate times the interest you paid that year. On a $39,990 Model Y financed at Tesla’s 2.49% promo rate, first-year interest is roughly $800 to $900, so a buyer in the 22% bracket saves under $200. At a higher outside rate the deduction is worth more, but you also pay more interest.

Does a leased Tesla qualify for anything federal?

No. The lease credit is gone and lease payments do not qualify for the loan interest deduction.

Is the home charger tax credit still available?

The federal 30C credit for home charging equipment only applies to property placed in service before July 1, 2026. Many utilities still offer charger rebates; check your state page.