The $7,500 Federal EV Tax Credit Is About to Expire
With the end of the $7,500 federal electric vehicle (EV) tax credit approaching in September, it’s a critical time for potential buyers looking to take advantage of this financial incentive. This discount, which has been available for several years, is set to expire on September 30—nearly eight years earlier than initially planned. For those considering an electric car purchase, there are still about three months left to secure this substantial benefit.
In total, 20 electric cars are eligible for the tax credit when purchased. However, leasing is a different story; any EV can qualify for the lease-based benefits. Not all models are created equal, and some stand out as top choices for their performance, range, and overall value.
How We Test and Evaluate EVs
The InsideEVs staff conducts extensive testing each year, evaluating dozens of EVs and hybrid vehicles at events hosted by automakers and during week-long reviews. These tests involve driving, charging, and living with the vehicles in various cities across the country and around the world. This process ensures that readers receive well-informed advice on what to buy.
When reviewing cars, the team considers two key questions: Is this a good electric vehicle? And is this a good vehicle, period? The best-performing models score well in both categories. They are vehicles that are easy to live with, provide good value for money, and meet essential metrics.
For those interested in knowing which of these top picks also qualify for the $7,500 tax credit, further details can be found below. Additionally, guides to the best EVs to buy, best compact electric SUVs, cheapest EVs, and best electric sedans are available.
Top Picks for Different Needs
The Best Electric Crossovers
2025 Tesla Model Y
The Tesla Model Y has become a common sight in many parts of the country due to its combination of range, performance, technology, and price. It offers a spacious interior, a satisfying infotainment system, great route planning, native access to thousands of Tesla Superchargers, and regular software updates. The latest model has seen improvements that address previous complaints, making it a more refined option.
2025 Hyundai Ioniq 5
The Ioniq 5 brings a retrofuturistic design and impressive charging capabilities. With a 800-volt architecture, it can recharge from 10% to 80% in approximately 20 minutes. The 2025 model features enhanced range and a Tesla-style NACS port for seamless charging.
Kia EV6
The Kia EV6 is nearly identical to the Ioniq 5 in terms of motors, battery, and underlying technology. It offers a smoother look and slightly more range, making it a strong contender for those who prefer a more athletic driving experience.
The Best Affordable EV
2025 Chevy Equinox EV
The Chevrolet Equinox EV stands out for its affordability and strong specs. With over 300 miles of range and a price point below $30,000 after the tax credit, it provides excellent value. It also includes GM’s hands-free driving software, Super Cruise, though this feature is not available on the base trim.
The Best Electric Three-Row SUVs
2026 Kia EV9
The Kia EV9 introduces a new market for mainstream three-row electric SUVs in America. It offers a roomy interior, quick charging, and a Tesla-style charging port. However, the price is higher for all-wheel-drive and longer-range configurations.
2026 Hyundai Ioniq 9
The Ioniq 9 brings the winning formula of the EV9 to the Hyundai lineup, offering ample space, over 300 miles of range, and a unique, van-like design. While the price is high, the tax credit could help offset some of the costs.
Best Luxury EVs
2025 Cadillac Optiq
The Cadillac Optiq combines luxury with practicality, featuring a luxurious interior, over 300 miles of range, and standard Super Cruise. It also includes Dolby Atmos for an immersive audio experience.
2025 Cadillac Lyriq
The Lyriq offers a stylish design, comfort, and a range that lasts for days. Its user interface is responsive and functional, with Google Maps serving as the built-in navigation system.
The Best Electric Truck
2025 Ford F-150 Lightning
The Ford F-150 Lightning is the only electric pickup that qualifies for the tax credit. It offers a familiar driving experience, solid range, and improved charging speeds. Accessories from the gas-powered F-150 are compatible with the electric version.
Best Electric Sedan
2025 Tesla Model 3
The Tesla Model 3 remains a strong choice for its combination of powerful technology, efficient charging, and access to the Supercharger network. A recent refresh has improved its visual appeal and interior quality. However, it uses steering wheel-mounted buttons for turn signals, which may take some getting used to.
