What Changed: The Federal EV Tax Credit Ended
The big change for 2026 is not a new rule about who qualifies. It is that the federal EV tax credit is gone. Under the One Big Beautiful Bill Act (Public Law 119-21), the up to $7,500 credit for new clean vehicles, the commercial credit that leasing companies used, and the up to $4,000 used EV credit all ended for vehicles acquired after September 30, 2025. If you take delivery of an EV today, there is no federal $7,500 flowing through the purchase or the lease.
There Is No Longer a Leasing Bypass
For a few years, leasing was the smart workaround. The leasing company claimed the federal commercial clean vehicle credit, which had no income limit and no MSRP cap, and many manufacturers passed that $7,500 through as a reduction in your capitalized cost. That workaround is over. The commercial credit ended on the same date as the purchase credit, so there is no longer a federal credit to bypass into. Any advertised EV lease payment you see now is built on the manufacturer's own incentives, not a federal tax credit.
New Jersey Also Ended Its EV Sales Tax Exemption
New Jersey used to exempt zero-emission vehicles from sales tax. That break is gone too. The state phased it out and, as of July 1, 2025, EVs pay the full 6.625% New Jersey sales tax, the same rate as a gas vehicle. On a $45,000 EV that is close to $3,000 in tax before any rebate is applied.
What Still Helps in NJ: Charge Up New Jersey
The state's Charge Up New Jersey program is the incentive that still exists, and it is a point-of-sale rebate applied at a participating dealership rather than a tax credit you wait to claim. As of mid 2026 the program was renewed for the new state fiscal year, with a fixed base incentive on eligible new battery-electric vehicles priced at or below an MSRP of $55,000, plus an additional income-based amount for lower-income applicants who qualify, which can bring the total to roughly $4,000. Funding is limited and has paused between fiscal years in the past, so treat any amount as available only if the program is currently funded. Confirm the current status and your eligibility before you count on it.
The Federal Home Charger Credit Is Ending Too
If you were counting on the federal credit for a home charger, that one is also on its way out. The alternative fuel refueling property credit ended for equipment placed in service after June 30, 2026. If your charger goes in after that date, it does not qualify.
What Actually Lowers an EV Payment Now
With the federal credits gone, the real lever on an EV lease is the manufacturer's own program: lease cash, a subsidized money factor, and dealer incentives on specific models. These change monthly and vary by make, model, and region, which is exactly the kind of thing a broker watches. At Vantage Auto Group we coordinate the search across our dealer network to find the models carrying the strongest manufacturer incentives, then show you the real numbers.
Want to see which manufacturer lease incentives are available on the EV you want? Request a quote from Vantage Auto Group and we will show you the numbers for available inventory.
See our full overview of NJ EV incentives in 2026 for the complete picture.
