The Federal EV Tax Credit in 2026
The federal clean vehicle tax credit of up to $7,500 for new EVs remains available in 2026, but the rules around who qualifies have made it harder for many buyers to claim it on a purchase. Income limits and vehicle price caps exclude a significant portion of shoppers who would otherwise want to use the credit. Leasing, however, changes the picture entirely.
Income Limits for Purchases
If you are buying an EV, your modified adjusted gross income must be below $150,000 for single filers or $300,000 for joint filers to claim the full credit. If your income exceeds these thresholds in the year you take delivery, you will not receive the credit. There is no way to recover it after the fact.
Vehicle Price Caps for Purchases
SUVs, trucks, and vans must have an MSRP at or below $80,000 to qualify. Cars and sedans must be at or below $55,000. Vehicles priced above these caps do not qualify for the purchase credit regardless of your income. This means many premium EVs are excluded from the credit on the purchase side.
Why Leasing Bypasses Both Limits
When you lease, the leasing company technically owns the vehicle and claims the federal commercial clean vehicle credit instead. This credit has no income limit and no MSRP cap. Many manufacturers pass the $7,500 credit to you as a reduction in your capitalized cost, lowering your monthly payment regardless of your income or the vehicle's sticker price.
The Charge Up NJ Rebate in 2026
New Jersey's Charge Up NJ rebate remains available in 2026 for both buyers and lessees of battery electric vehicles. BEVs are eligible for up to $4,000 and PHEVs for up to $1,500. The rebate is processed through the dealership at the time of purchase or lease, subject to available program funding.
The Used EV Tax Credit
A federal tax credit of up to $4,000 is also available for qualifying used EVs. The vehicle must be at least two model years old, cost $25,000 or less, and be purchased from a licensed dealer. Income limits apply: $75,000 for single filers and $150,000 for joint filers.
Want to see how today's EV tax incentives affect your monthly payment? Get a quick quote from Vantage and we will show you the numbers for available inventory.
See our full overview of NJ EV incentives in 2026 for the complete picture.
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