The federal tax credit for electric vehicle purchases up to $7,500 is ending on Sept. 30 due to the One Big Beautiful Bill Act. However, taxpayers who enter a binding contract before that date may still qualify for the credit, even if the vehicle is delivered later.

Economists project a 27% drop in electric vehicle demand without the $7,500 credit. The IRS allows buyers more time to claim the credit by using the contract date for eligibility. This change aligns with the Inflation Reduction Act and benefits buyers with delayed deliveries like Tesla customers.

Buyers should be aware of purchase price limits and income restrictions to claim the electric vehicle tax credit. Single filers making over $150,000 and joint filers over $300,000 are not eligible. To qualify, sign a binding purchase agreement by Sept. 30 and make a down payment or trade-in.

Time is running out to claim the electric vehicle tax credit. Ensure you meet the requirements, including signing a binding contract by Sept. 30 and making a payment. Stay informed and act promptly to avoid missing the deadline for this valuable credit.

Read more at Yahoo Finance: Can You Still Qualify Before Sept. 30?