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Are EV Tax Credits Worth It
Are EV tax credits worth it in the US? How to qualify, how much you get, and when they make an EV a better deal.
AutoPremo Team
January 31, 2026
2 min read
EV tax credits in the U.S. can be worth thousands—up to $7,500 federal plus state—but eligibility depends on income, vehicle, and battery sourcing. Here's when EV tax credits are worth it and how to qualify.
TL;DR EV tax credits are worth it when you qualify and the credit reduces effective purchase price enough to make total cost of ownership competitive with gas or hybrid. Check income and vehicle eligibility; factor credit into total cost. Use autopremo.com total cost of ownership to see total cost with and without credits.Are EV Tax Credits Worth It?
- Federal credit — up to $7,500 for qualifying new EVs. Eligibility: income limits, vehicle MSRP caps, battery and assembly requirements. If you qualify, the credit reduces effective purchase price by up to $7,500—that can make an EV's total cost of ownership lower than gas or hybrid. Use autopremo.com total cost of ownership to compare with and without credit.
- State credits/rebates — many states offer additional rebates or credits. Factor those into effective purchase price. Check your state for 2026.
- When they're worth it — when you qualify and the credit (federal + state) makes the EV's total cost of ownership competitive or lower than gas or hybrid. Run the numbers. Use autopremo.com.
What to Do
- Check eligibility — income, vehicle (IRS list), battery sourcing. Rules change; verify for 2026.
- Factor credit into purchase cost — effective purchase = sticker minus federal credit (if you qualify) minus state rebate (if you qualify). Use that in total cost of ownership. Use autopremo.com total cost of ownership.
- Compare total cost — EV with credits vs gas vs hybrid. Use autopremo.com. If EV total cost (after credits) is lower, tax credits are "worth it."
Bottom Line
EV tax credits are worth it when you qualify and the credit makes the EV's total cost of ownership competitive or lower than gas or hybrid. Check eligibility and factor credits into total cost. Use autopremo.com to see total cost so you decide if credits make an EV worth it for you.