Sierra EV Tax Credit Highlights
Qualifies for Full $7,500
The Sierra EV meets all critical mineral and battery component requirements for the maximum credit.
Made in the USA
All Sierra EV models are assembled at Factory Zero in Detroit, Michigan.
Under $80K MSRP Limit
Qualifying Sierra EV configurations fall below the $80,000 price cap for trucks.
Important Update: The Clock is Ticking on Your $7,500 Credit
Due to recent federal legislation (the One Big Beautiful Bill Act), the federal EV tax credit is ending much sooner than expected.
The final deadline to purchase and take delivery of your qualifying GMC Sierra EV is September 30, 2025.
This means your window to secure this significant savings is now very limited. All eligibility requirements below still apply, but you must complete your purchase before the program expires this fall.
Check Your Eligibility NowDo You Qualify for the EV Tax Credit?
Income Requirements
Your modified adjusted gross income must be below:
- $300,000 for married couples filing jointly
- $225,000 for heads of household
- $150,000 for single filers and other taxpayers
You can use your income from either the year you take delivery or the previous year, whichever is lower.
Vehicle Requirements
The GMC Sierra EV meets all federal requirements:
- Final assembly in North America (Detroit, MI)
- MSRP under $80,000 for qualifying configurations
- Battery capacity over 7 kWh (200+ kWh standard)
- Gross vehicle weight under 14,000 lbs
- Meets critical mineral and battery component requirements
Important Note:
The dealer must provide you with a time-of-sale report and register the sale with the IRS for you to claim the credit. Be sure to keep all documentation.
About the GMC Sierra EV
Electric Power Meets Truck Capability
The all-electric GMC Sierra EV combines zero-emissions driving with the capability truck owners expect:
- Estimated 400+ miles of range
- Up to 10,000 lbs towing capacity
- Instant electric torque for impressive acceleration
- Advanced MultiPro tailgate and storage solutions
- Ultium battery technology with fast charging
How to Claim Your Tax Credit
1. At Time of Purchase
Your dealer will provide a time-of-sale report confirming eligibility. They must register the sale with the IRS.
2. When Filing Taxes
File Form 8936 with your tax return for the year you took delivery. You'll need the vehicle's VIN.
3. Keep Records
Retain all purchase documents and the time-of-sale report for your records.
Pro Tip:
The credit is non-refundable, meaning it can reduce your tax liability to zero but won't result in a refund if your credit exceeds what you owe.
Understanding the Upcoming Changes to the EV Tax Credit
Why Is The Credit Ending?
The federal EV tax credit was originally established and modified by the Inflation Reduction Act (IRA) with a planned duration through 2032. However, with the passage of President Donald Trump's 2025 tax reform, known as the One Big Beautiful Bill (OBBB), the federal EV tax credit will now expire for vehicles purchased or leased after September 30, 2025.
Key Points for 2025:
- Final Deadline: To claim up to $7,500 for a new EV, you must purchase and take physical delivery before September 30, 2025.
- Eligibility Rules Still Apply: All existing requirements—including income limits, vehicle price caps, and North American assembly—remain in effect until the deadline.
- Accelerated Phase-Out: The new law accelerates the end date, removing the credit for all buyers regardless of manufacturer this fall.
- Industry Impact: Many experts warn this change will likely slow EV adoption, as most buyers will lose the upfront cost advantage that made these vehicles more accessible.
The Bottom Line:
"If you're considering an EV, the next few months represent the last opportunity to take advantage of this federal incentive before it disappears. Despite these changes, the EV tax credit (while it's still available) offers significant benefits for eligible consumers who act before the deadline."
What About Other Incentives?
While the federal credit is sunsetting, some state and local incentives might remain in effect. We recommend checking with your local and state government websites to see what additional savings might be available in your area after the federal program ends.
This updated information is based on reporting from industry-leading sources including Kiplinger, Edmunds, and the IRS. The situation remains fluid, and we are committed to providing you with the most current information to help you make an informed decision.
Additional Resources
For more information about clean vehicle tax credits before the September 2025 deadline:
Ready to Save on Your Sierra EV?
Our EV specialists can help you find qualifying models and explain the tax credit process. Time is limited—act before September 30, 2025.