The Federal $7,500 Credit: What Happened
For years, the federal Clean Vehicle Credit offered up to $7,500 off a new EV and up to $4,000 off a qualifying used one. That changed with the 2025 tax legislation known as the “One Big Beautiful Bill Act.” Under the new rules, federal clean-vehicle purchase credits for new EVs, used EVs, and commercial/leased EVs are no longer available for vehicles acquired after September 30, 2025.
There’s one narrow exception: if you entered a binding written contract and made a payment on or before September 30, 2025, you may still qualify even if you took possession of the vehicle later. If you think this applies to you, keep your paperwork and talk to a tax professional — this is a documentation-heavy exception, not a simple checkbox.
For anyone shopping in 2026, the honest answer is: don’t count on a federal purchase credit. It’s not coming back under current law, though tax law can always change again.
What’s Still Real: New York’s Drive Clean Rebate
New York’s own incentive program, the Drive Clean Rebate, is separate from the federal credit and is still active. Administered by NYSERDA, it’s a point-of-sale rebate — meaning the discount is applied by the dealer at the time of purchase or lease, not something you wait to claim on your taxes.
How much you get depends on the vehicle:
- Vehicles with an EPA-rated all-electric range of 200+ miles (or leased for at least 36 months) qualify for the full rebate, up to $2,000.
- Vehicles with a range between 40 and 199 miles qualify for a $1,000 rebate.
- Vehicles with a shorter range, or an MSRP over $42,000, get a flat $500 rebate.
More than 60 EV models currently qualify. As of a NYSERDA announcement during Earth Week 2026, the state added an additional $30 million to the program’s funding, and NYSERDA has stated that over 200,000 New Yorkers have used the rebate since the program’s 2017 launch.
The Home Charger Tax Credit (Section 30C) — And Its Deadline
Separate from vehicle credits, there’s a federal tax credit for installing EV charging equipment at your home: the Alternative Fuel Vehicle Refueling Property Credit (Section 30C). It covers 30% of the cost of the charging port, the components necessary to operate it, and installation labor, up to a maximum of $1,000.
Two things matter a lot here:
- The equipment must be placed in service (ready for use) before July 1, 2026. This credit is not available for equipment installed after that date under current rules.
- Your home must be in an eligible location — the IRS describes this as a qualifying or “eligible census tract,” generally non-urban or lower-income areas. Not every address in Westchester will qualify. The Department of Energy maintains a lookup tool for checking census tract eligibility before you install anything.
If you’re considering a home charger, the practical takeaway is: don’t wait. Between electrician availability, permitting, and inspection timelines, starting the process well before the deadline matters.
The New Auto Loan Interest Deduction
The same 2025 legislation that ended the vehicle purchase credit introduced something different: a deduction for interest paid on qualifying new vehicle loans, including EVs. Eligible buyers can deduct up to $10,000 per year in loan interest on new vehicle loans originated between 2025 and 2028.
To qualify, the vehicle generally must:
- Be new (not used)
- Have its final assembly in the United States
- Be for personal use
The deduction phases out at higher incomes — full benefit is generally available up to $100,000 modified adjusted gross income for single filers or $200,000 for joint filers, phasing down above that. This is a deduction, not a credit, and it’s claimed as an above-the-line deduction, meaning you don’t need to itemize to use it. As always with anything involving “final assembly location” or income phase-outs, check your specific vehicle and situation with a tax professional.
Incentives for Businesses Installing Chargers
If you’re a Westchester business considering EV charging for customers or employees, New York offers a separate state tax credit — the Alternative Fuels and Electric Vehicle Recharging Property Credit — covering up to $5,000 per charging station or 50% of the property’s cost, whichever is less. This is a state program independent of the federal 30C credit, though eligibility rules and current funding status should be confirmed directly with New York State before committing to a project.
What We Genuinely Don’t Know
To be direct about the limits of what’s verifiable right now: there has been legislative discussion in Albany about creating a true New York State income tax credit for EV purchases — separate from the point-of-sale Drive Clean Rebate — as well as a possible rebate program specifically for used EVs to help fill the gap left by the expired federal used-EV credit. As of this writing, these remain proposals under discussion, not enacted law. We’re not going to guess at amounts or timelines for something that hasn’t passed, and neither should you when budgeting for a purchase.
The Bottom Line
If you’re buying an EV in Westchester County in 2026, plan around what’s actually available: the NYSERDA Drive Clean Rebate at the dealership, the federal home charger credit if you install before the June 30, 2026 deadline and live in an eligible area, and the new auto loan interest deduction if your vehicle qualifies. Don’t plan around the old $7,500 federal credit — it’s gone for 2026 purchases barring a change in the law.