Here are the best electric vehicles eligible for the federal tax credit in 2025.

Posted on

Federal EV Tax Credit Expiring Soon

If you’ve been considering buying an electric car, you have until September 30th to take advantage of a significant federal tax credit. The “Big Beautiful Bill” passed by Republicans set aside $7,500 for eligible electric vehicles, but this credit will expire early.

There are currently 20 electric cars that qualify for this tax credit, although leasing an EV can also make you eligible. The cars that are most recommended by the InsideEVs team, based on road tests, years of experience evaluating the EV market, and what buyers value most, are listed below.

How We Test

The InsideEVs team tests many electric and hybrid vehicles each year at automaker events and through week-long reviews. We drive, charge, and experience these cars in various cities across the country and worldwide to provide the best advice for potential buyers. We also constantly monitor the evolving EV landscape to provide context for these vehicles.

When reviewing cars, we consider two important questions: Is this a good electric vehicle? And is it a good vehicle overall? Our top picks excel in both areas. They are easy to live with, offer good value, and perform well on key metrics.

You can read more about which of our top-rated vehicles are also eligible for the $7,500 tax credit, and explore our guides to the best EVs to buy, the best compact electric SUVs, the cheapest EVs, and the best electric sedans.

The Best Electric Crossovers

The Best Overall EV For Most People: 2025 Tesla Model Y

The Tesla Model 3 Performance

Photo by: Tesla

Base Price: $42,490
Range: 298-363 miles.
Drive Type: Rear or all-wheel drive

The Model 3 is a pioneering electric vehicle. After a recent refresh, it remains a strong choice. Like the Model Y, the Model 3 provides a good balance of advanced technology, regular software updates, a long range, fast charging, and access to Tesla’s Supercharger network. The refresh improved its looks, efficiency, and interior.

If you prefer physical buttons over a touchscreen, consider other electric sedans like the Hyundai Ioniq 6 and Lucid Air. However, neither of these qualifies for the EV tax credit. Another minor drawback of the new Model 3 is the steering wheel-mounted buttons instead of a traditional turn-signal stalk, which may take some getting used to.

Gravatar Image
I'm Rohan Mehta, the voice behind KhelRe—a trusted and steadily growing blog dedicated to electric vehicles (EVs) in India. With over five years of experience as a tech and automotive blogger, I turned my frustrations with owning an EV into a mission: to help others make more intelligent choices in this fast-evolving world of electric mobility. I've been an early adopter of EV technology—I repurchased my first electric scooter in 2019. That experience opened my eyes to both the promises and the pitfalls of this new mode of transport. From slow charging times and range anxiety to misleading specs and hidden costs, I've faced it all. But instead of walking away, I decided to write about it. That's how KhelRe was born—a no-nonsense, hands-on blog where I share practical, real-world reviews of EV cars, bikes, and scooters. I break down features, range, performance, and pricing from a user-first perspective. I take pride in simplifying complex tech into clear, valuable insights—offering tips, ownership stories, and advice you won't find in flashy press releases or sales brochures. Whether you're a first-time EV buyer or just a curious auto enthusiast, my goal is to help you navigate the EV landscape with confidence. My motto: "EV knowledge should come from experience, not just brochures." When I'm not test-driving the latest e-scooter or comparing charging networks, you'll probably find me tinkering with my garage EV setup, chatting with fellow enthusiasts online, or sipping chai while writing my next blog post from a cosy local café.

Leave a Reply

Your email address will not be published. Required fields are marked *