The federal tax credit landscape for electric vehicles changed dramatically in 2025. With the signing of the One Big Beautiful Bill Act on July 4, 2025, the $7,500 federal tax credit for new EVs and the $4,000 credit for used EVs ended for vehicles acquired after September 30, 2025. If you are searching for information on EV tax credits in 2026, the most important thing to understand is that the federal EV purchase credits are no longer available for new buyers.

That does not mean every incentive has disappeared. The federal tax credit for home EV charger installation remains available through June 30, 2026, a new auto loan interest deduction offers up to $10,000 in annual tax savings for qualifying vehicle purchases, and California offers some of the strongest state and local EV incentive programs in the country. For drivers in North Hollywood and the surrounding communities of Burbank, Studio City, Valley Village, and Toluca Lake, understanding which incentives are still on the table can make EV ownership significantly more affordable.

The Inflation Reduction Act of 2022 established federal tax credits of up to $7,500 for new electric vehicles and up to $4,000 for qualifying used EVs. These credits came with requirements around North American assembly, battery sourcing, MSRP caps, and buyer income limits. While these credits drove significant EV adoption through 2024 and into 2025, the One Big Beautiful Bill Act accelerated their expiration.

As of October 1, 2025, the following federal credits are no longer available for new purchases:

For everyone else shopping for an EV in 2026, the federal vehicle purchase credits are off the table. The savings opportunities that remain are the federal charger installation credit, the new auto loan interest deduction, and a range of California state and local programs.

The one federal tax incentive that survived into 2026 is the Alternative Fuel Vehicle Refueling Property Credit under Section 30C of the Internal Revenue Code. This credit covers 30 percent of the cost of purchasing and installing a qualified EV charger at your primary residence, up to a maximum of $1,000 per charging port.

Key Eligibility Requirements

The credit is non-refundable — it can reduce your federal tax liability to zero but will not generate a refund beyond what you owe. Unused credit cannot be carried forward to future tax years. With the June 30, 2026 deadline approaching, homeowners considering a charger installation should plan ahead — electrical work, permitting, and equipment lead times can add weeks to the process.

While the federal EV purchase credits have ended, the One Big Beautiful Bill Act introduced a new incentive that benefits all new car buyers, including EV shoppers: a federal tax deduction for auto loan interest. Eligible taxpayers can deduct up to $10,000 per year in interest paid on qualifying new vehicle loans from 2025 through 2028.

Qualification Requirements

This is an above-the-line deduction, meaning you can claim it even if you take the standard deduction — you do not need to itemize. There is no limit on the number of qualifying vehicles, and refinanced loans remain eligible as long as they meet the original criteria.

For residents of Los Angeles served by the Los Angeles Department of Water and Power, a separate rebate program provides additional savings on home charger installations. LADWP's Residential EV Charger Rebate Program offers up to $1,000 for the purchase and installation of a qualified Level 2 charger. Customers enrolled in LADWP's Lifeline or EZ-SAVE low-income assistance programs are eligible for an additional $500, bringing the total potential rebate to $1,500. An additional $250 rebate is available for the installation of a dedicated EV time-of-use meter.

LADWP Rebate Details

Key requirements include active LADWP residential account status, use of a licensed electrician for installation, and compliance with local permitting and safety standards. The charger must meet LADWP's technical specifications, including Level 2 capability and a SAE J1772 or J3400 connector.

This rebate can be combined with the federal Section 30C tax credit for homeowners who qualify for both. A North Hollywood homeowner in an eligible census tract who installs a qualifying Level 2 charger could potentially receive up to $1,000 from LADWP plus up to $1,000 from the federal credit, significantly reducing out-of-pocket costs. LADWP also offers a time-of-use EV rate discount for charging during off-peak hours, which further reduces the ongoing cost of home charging.

While the federal EV purchase credits have ended, California's Clean Cars 4 All program continues to provide meaningful incentives for income-qualified residents looking to replace older, higher-polluting vehicles with cleaner alternatives. The program is administered by the California Air Resources Board and is available through participating air districts, including the South Coast Air Quality Management District, which serves the North Hollywood area.

Eligible participants can receive assistance toward the purchase or lease of a new or used battery electric vehicle, plug-in hybrid, or zero-emission motorcycle. Alternative mobility options such as e-bikes and public transit vouchers are also available. Buyers of plug-in hybrids and battery electric vehicles through the program may also qualify for home charger incentives or prepaid charging cards.

Eligibility is based on household income relative to area median income, ownership of an older vehicle that meets the program's emissions thresholds, and residency within a participating air district. For residents in areas not covered by a local Clean Cars 4 All program, the statewide Driving Clean Assistance Program extends similar benefits, though some funding tiers may be temporarily closed due to high demand.

Clean Cars 4 All incentives can be layered with the federal charger credit, LADWP rebates, the auto loan interest deduction, and any applicable manufacturer incentives. For qualified buyers, this stacking approach can substantially reduce the total cost of transitioning to an electric vehicle.

Whether or not you qualify for tax credits or rebates, understanding the costs involved in a home charger installation helps you plan effectively. A Level 2 charger provides faster charging speeds than a standard household outlet, typically adding 20 to 40 miles of range per hour of charging.

Typical Cost Breakdown

Several factors influence installation costs for homes in the North Hollywood area. The distance from your electrical panel to the desired charger location affects wiring and conduit expenses. Panel capacity and the availability of open breaker slots determine whether an upgrade is necessary. Older homes in neighborhoods like Toluca Lake, Valley Village, Sun Valley, and Valley Glen may be more likely to need panel work.

When selecting a charger, consider features like adjustable amperage, Wi-Fi connectivity for scheduling and monitoring, and compatibility with your specific Toyota EV model. The 2026 Toyota bZ, which features a NACS charging port and supports Level 2 AC charging with an 11-kW onboard charger, is compatible with widely available Level 2 home charging equipment.

All installations should be performed by a licensed electrician and must pass local building inspections. These steps are required for both safety compliance and eligibility for rebate and tax credit programs. For tips on maintaining your Toyota hybrid or electric vehicle, visit our maintenance guide.

Step 1: Verify census tract eligibility for the federal Section 30C credit using the Department of Energy's 30C Tax Credit Eligibility Locator tool. If your location qualifies, you can proceed with confidence that the federal credit applies.

Step 2: Select a qualified Level 2 charger that meets both IRS requirements for the federal credit and LADWP's specifications if you plan to apply for the utility rebate.

Step 3: Hire a licensed electrician, obtain necessary permits, and complete the installation before June 30, 2026, to meet the federal deadline.

Step 4: Retain all documentation including purchase receipts, installation invoices with itemized costs, permit approvals, and inspection certificates.

Step 5: File IRS Form 8911 with your tax return for the year the charger was placed in service. For the LADWP rebate, submit a completed application with supporting documentation to LADWP's rebate program separately.

Step 6: If you may qualify for Clean Cars 4 All, apply through the South Coast AQMD or the statewide Driving Clean Assistance Program before purchasing your vehicle, as some programs require pre-approval.

Consulting a tax professional familiar with EV-related credits is recommended to ensure accurate filing and to confirm your eligibility for each program.