Tesla Tax Credit Ended in 2025 — Here's What Replaced It
Important Update
The federal $7,500 EV tax credit ended September 30, 2025. Here's what's available now.
What Happened to the Tax Credit?
The Inflation Reduction Act's clean vehicle tax credits officially expired on September 30, 2025. This includes the $7,500 credit for new electric vehicles and the $4,000 credit for used EVs.
Get 3 Months Free FSD
Use a referral code when ordering and get 3 months of Full Self-Driving for free ($297 value).
Get Referral Code →What Replaced It?
New: Auto Loan Interest Deduction
Deduct up to $10,000 in auto loan interest on your federal taxes
- ✓ Applies to vehicles made in America
- ✓ Must be purchased new after Dec 31, 2024
- ✓ Loan must originate between Jan 1, 2025 - Dec 31, 2028
- ✓ Phases out for income over $100k (single) / $200k (joint)
The Real Deal: 0% Financing
Tesla is now offering incredibly low financing rates:
Current Financing Rates
Model Y AWD: 0% APR
Zero interest for 72 months
Model 3 Premium: 0.99% APR
72 months at basically nothing
That 0% APR on Model Y saves you $5,000-6,000 compared to a traditional car loan. That's better than the old tax credit for many buyers.
Don't Forget Your Referral Benefits
Use a referral code to get:
- ✓ 3 months free FSD ($297 value)
- ✓ 1 year free Supercharging
ts.la/brad626059 →
State Rebates Still Available
Many states still offer generous EV rebates:
| State | Rebate |
|---|---|
| Maine | Up to $8,000 |
| Colorado | Up to $3,250 |
| Maryland | Up to $3,000 |
| New Jersey | $1,500-$4,000 |
Bottom Line
While the $7,500 tax credit is gone, the combination of 0% financing, state rebates, and referral benefits provides similar or better value for most buyers.