Do all EVs qualify for the US federal tax credit?

No. As of 2025, vehicles must meet strict battery component and critical mineral sourcing requirements. They must also have final assembly in North America and be under a specific MSRP cap ($55,000 for cars, $80,000 for SUVs/trucks). The list of eligible vehicles can change, so always check the latest government sources.

How does the UK Benefit-in-Kind (BIK) tax work for EVs?

Benefit-in-Kind (BIK) is a tax on employees who receive perks like a company car. For EVs, the BIK tax rate is extremely low (2% until April 2025), whereas petrol or diesel cars can be taxed at 25-37% of the car's value. This makes EVs significantly cheaper for employees as a company car.

Can I get the US tax credit if I lease an EV?

Technically, the tax credit goes to the leasing company (the owner of the vehicle). However, many manufacturers and leasing companies will pass this saving on to the customer in the form of a lower monthly payment. It is often advertised as a '$7,500 lease credit'.

Pillar Guide

EV Tax Incentives & Grants 2025 (UK & US Guide)

September 22, 2025

4 min read

In the UK, 2025 incentives focus on company car BIK tax savings and charger grants for renters/landlords. In the US, a federal tax credit of up to $7,500 for new EVs and $4,000 for used EVs is available, but with strict income, price, and vehicle sourcing rules. Many US states offer additional stackable rebates.

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EV Tax Incentives & Grants 2025 (UK & US Guide)

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