The big 2026 reality: the US federal $7,500 new-EV and $4,000 used-EV credits ended on 30 September 2025 under the One Big Beautiful Bill Act. The separate 30C charging-equipment credit expires 30 June 2026 — 30% up to $1,000 per port for homes, up to $100,000 per item for businesses (placed in service by that date). On trade, the US applies a 100% tariff on Chinese EVs; the EU uses model-specific duties (about 17% for BYD up to ~35% for SAIC, now paired with price-floor talks); and India charges 70–110% import duties, with a reduced 15% rate only for manufacturers investing locally. Always reverify current rules before acting.
Credits and duties at a glance (2026)
| Measure | Status / rate | Key detail |
|---|---|---|
| US new-EV credit ($7,500) | Ended 30 Sep 2025 | No federal new-EV credit now |
| US used-EV credit ($4,000) | Ended 30 Sep 2025 | No federal used-EV credit now |
| US 30C charger credit | Expires 30 Jun 2026 | 30% to $1,000/port (home); $100k/item (business) |
| US tariff on Chinese EVs | 100% | Effectively blocks Chinese EV brands |
| EU tariff on Chinese EVs | ~17–35% (model-specific) | Price-floor approach being discussed |
| India EV import duty | ~70–110% | 15% rate for big local investors only |
The US purchase credit has ended
For years the federal $7,500 credit for new EVs and $4,000 for used EVs were the centrepiece of US EV policy. Under the One Big Beautiful Bill Act, both ended for vehicles acquired after 30 September 2025. There is no federal purchase credit for new or used EVs after that date. In 2025 the $7,500 credit had largely offset the price premium of an EV over a petrol car; without it, US buyers now carry more of that upfront gap, which has cooled demand and slowed the market.
One new federal benefit replaced part of it: a deduction of up to $10,000 per year on interest for loans on qualifying US-assembled new vehicles, available for 2025–2028. It is a deduction, not a credit, so its value depends on your tax situation and it is narrower than the old credit.
The charging-equipment credit is on a deadline
The Section 30C Alternative Fuel Vehicle Refueling Property Credit — which covers EV charging equipment — was shortened by the same law and now expires on 30 June 2026. To qualify, the charging equipment must be placed in service (operational) by that date.
- Individuals: 30% of the cost of a home charger, up to $1,000 per charging port.
- Businesses and organisations: 6% up to $100,000 per item, rising to 30% (same cap) if prevailing-wage and apprenticeship requirements are met.
- Deadline: the property must be operational by 30 June 2026 — after that, the credit is gone.
If you are planning a home or business charger and want the 30C credit, the equipment must be installed and operational by 30 June 2026. Given installer lead times and any permitting or grid-connection delays, do not leave this to the last weeks. Confirm eligibility and documentation with the IRS guidance or a tax professional.
Import duties: a global patchwork
On the trade side, governments are using tariffs to manage a flood of low-cost Chinese EVs — but with very different strategies.
United States: a wall
The US applies a 100% tariff on Chinese EVs (alongside 25% on Chinese EV batteries), effectively shutting Chinese brands out of the American market and prompting manufacturers like BYD to explore production in Mexico to access USMCA treatment.
European Union: targeted, and softening
The EU took a more graduated path, setting model-specific duties — roughly 17% for BYD up to about 35% for SAIC — based on an anti-subsidy investigation. Chinese makers adapted by exporting hybrids and plug-ins that escaped the duties, and the EU has since explored replacing tariffs with a negotiated minimum-price (price-floor) arrangement. The result is that Chinese cars have continued to gain share in Europe despite the duties.
India: high walls with a local-build incentive
India levies steep import duties of roughly 70–110% on EVs, with a reduced 15% rate available only to manufacturers that invest at least $500 million in local production (and only on a limited import volume). The aim is to force local assembly. Even so, Chinese brands such as BYD have grown sales sharply despite the tariffs.
| Market | Tariff strategy | Effect |
|---|---|---|
| US | Flat 100% on Chinese EVs | Blocks Chinese brands; pushes nearshoring |
| EU | Model-specific ~17–35%; price-floor talks | Slowed but did not stop Chinese share gains |
| India | ~70–110%, 15% for local investors | Forces local assembly; high consumer prices |
What this means for buyers
- US buyers: no federal purchase credit; check state, local and utility incentives, and the loan-interest deduction for US-assembled cars.
- Charger buyers anywhere in the US: the 30C credit ends 30 June 2026 — install before then to claim it.
- Global buyers: tariffs affect which models reach your market and at what price; the cheapest Chinese EVs may be unavailable or marked up where duties are high.
- Everyone: verify current rules before purchase — credits and duties have moved repeatedly and continue to change.
Frequently asked questions
Is the $7,500 federal EV tax credit still available in 2026?
Can I still get a tax credit for an EV charger?
Why are Chinese EVs so expensive or unavailable in some countries?
How does the EU's approach to Chinese EVs differ from the US?
Is there any new US federal benefit for buying an EV?
Sources & further reading
- IRS — Alternative Fuel Vehicle Refueling Property Credit (30C)
- IRS — Clean vehicle tax credits
- White & Case — US finalizes Section 301 tariff increases on China
Figures, prices and policy details were current at the last-updated date above. Automotive pricing, incentives and regulations change frequently — verify time-sensitive details with the linked primary sources. Read our editorial policy and fact-checking standards.
