IRS Details Loophole Extending Federal EV Tax Credit
After months of speculation, the government announced earlier this summer that the federal electric vehicle tax credit has an expiration date: Sept. 30. But not so fast: The Internal Revenue Service recently updated the timeline, giving some buyers a bit more time.
Related: Which Electric Cars Are Still Eligible for the $7,500 Federal Tax Credit?
According to the IRS, if a buyer orders a vehicle and puts money down on it before Sept. 30 but takes delivery after that date, they can still claim the tax credit at that later date.
Cadillac EVs at Tesla Supercharger | Manufacturer image
Related: Which Electric Cars Are Still Eligible for the $7,500 Federal Tax Credit?
According to the IRS, if a buyer orders a vehicle and puts money down on it before Sept. 30 but takes delivery after that date, they can still claim the tax credit at that later date.
“If a taxpayer acquires a vehicle by having a written binding contract in place and a payment made on or before Sept. 30, 2025, then the taxpayer will be entitled to claim the credit when they place the vehicle in service (namely, when they take possession of the vehicle), even if the vehicle is placed in service after Sept. 30, 2025. Taxpayers should receive a time-of-sale report from the dealer at the time they take possession or within three days of taking possession of the vehicle,” the IRS said on its website.
What does this mean for shoppers? The extension could save them thousands: Eligible shoppers can claim a credit of up to $7,500 for new EVs and up to $4,000 for used EVs.
More EV News From Cars.com:
- Thinking About Getting an EV Before the Tax Credit Changes?
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2025 Toyota Prius Review: Big on Mileage, Small on Space
By Jennifer Geiger
August 27, 2025
2025 Toyota Prius | Cars.com photo by Corey Watts
Is the 2025 Toyota Prius a Good Car?
- Sometimes! While demand for electric vehicles fluctuates, hybrids are having a moment, and one of the best when it comes to meeting its fuel-economy mission is the Toyota Prius. But while the Prius excels at being a hybrid — and a value-minded one at that — it’s a little odd; be ready to make some comfort and ergonomic sacrifices.
What Does the 2025 Toyota Prius Compete With?
- As a hybrid hatchback, the Prius doesn’t have many direct competitors. It goes up against nonhatch hybrids such as the Honda Accord Hybrid sedan, as well as compact SUV hybrids such as the Hyundai Tucson Hybrid and Toyota’s own RAV4 Hybrid; see the models compared.
The Prius was redesigned from the ground up for the 2023 model year, with new styling that was much more radical-looking than the previous model’s chunky, wedgelike silhouette. For 2025, Toyota added a Nightshade version that makes the Prius look even more dramatic, with blacked-out trim, black 19-inch wheels and an exclusive, eye-popping mustard-colored exterior paint called Karashi.
Related: What Are the Best 2025 Hybrids for the Money?
What Fuel Economy Does the 2025 Toyota Prius Get?
1 / 102025 Toyota Prius | Cars.com photo by Corey Watts
The Prius does a couple of things well, primarily fuel efficiency. The base, front-wheel-drive Prius earns an EPA-rated 57 mpg combined; all-wheel drive is available, but it knocks that rating down to 54 mpg combined. XLE and Limited trims are rated 52 mpg combined (49 mpg with AWD), but even those numbers are super competitive: In their base trims, the 2025 Honda Accord Hybrid is rated 48 mpg combined, the 2025 Hyundai Tucson Hybrid is rated 38 mpg combined, and the 2025 Toyota RAV4 Hybrid is rated 39 mpg combined. For those looking for even more efficiency, the Prius Plug-in Hybrid is rated up to 52 mpg combined, with 45 miles of electric-only range. It doesn’t, however, offer AWD. The regular Prius has an EV mode, but it didn’t get me far: I was able to drive on electric-only power for just a couple of blocks at very low speeds.
The Prius’ drama-free driving dynamics are another high point. While it’s always flown its hybrid flag when it comes to styling, it has a very “normal car” driving feel — in the best of ways.
Power comes from a 2.0-liter four-cylinder engine that’s coupled with an electric motor, good for a combined output of 194 horsepower with FWD (AWD versions get an additional electric motor for the rear wheels and make 196 hp). While I wouldn’t go so far as to call it fast or fun, the Prius has a lively quality to it. Acceleration from a stop is peppy, and it’s pretty maneuverable in around-town driving.
Drive modes add a bit more character or efficiency, depending on what you’re looking for: The Prius’ Sport mode makes for more aggressive acceleration, while Eco mode prioritizes fuel economy.
Overall, the Prius is very comfortable to drive, with suspension tuning that offers good bump absorption, natural-feeling steering and a well-integrated regenerative-braking system that lacks the odd lurchiness some other hybrids struggle with.
What Tech Does the 2025 Toyota Prius Have?
1 / 122025 Toyota Prius | Cars.com photo by Corey Watts
The Prius’ climate and infotainment controls have a straightforward design and are fairly intuitive to use. An 8-inch touchscreen multimedia system with wireless Apple CarPlay and Android Auto is standard; a larger 12.3-inch screen is optional. The larger screen on my Nightshade trim was easy to use and responsive, with near-seamless connection to wireless Android Auto every time I got in the car.
Wireless phone charging is standard on the Nightshade, which sits just below the top Limited trim in the lineup. Limited-only options include a 360-degree camera system and autonomous parking. My test car came with an optional integrated dashcam that can record emergencies like accidents, but at $375, it was expensive.
In other ways, including its materials and design, the Prius’ cabin is largely forgettable. The Nightshade trim at least adds some visual drama, with black SofTex imitation-leather seats with gray contrast stitching, along with carbon-fiber paneling on the dash.
Shop the 2025 Toyota Pri
What’s Wrong With the 2025 Toyota Prius?
My biggest issues with the Prius have to do with its shape. While the 2025 Prius is definitely a lot less nerdy-looking than the previous generation, its swoopy styling comes at the cost of practicality in terms of space and visibility. It looks cool but is a pain to live with, which will become apparent as soon as you attempt to get into it: It’s difficult to get in and out of the Prius due to its short stance and low roofline.
Once you make it inside, headroom is not generous in either row, especially in models with the optional glass roof. At 5-foot-6, I had enough headroom, but taller editors struggled — especially in the backseat due to the Prius’ sloping rear roofline.
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Toyota is one of the world’s largest automakers. Its Prius helped popularize hybrids, and its diverse lineup includes many hybrid models today.
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1 / 112025 Toyota Prius | Cars.com photo by Corey Watts
In our Car Seat Check, we installed two car seats with ease thanks to the Prius’ accessible lower anchors, but taller front passengers will feel cramped when a rear-facing car seat is installed behind them.
Visibility everywhere is another struggle. From the driver’s seat, it can be tough to see out of the Prius thanks to its super-low windshield, sloped rear end and small rear window. That said, this generation’s rear visibility is actually somewhat of an improvement over the outgoing model’s odd split-window design, but it’s still not great.
The placement of the gauge cluster also affected my view forward. It sits in a large panel mounted high on the dash; not only was the panel partially blocked by the steering wheel, it also impacted my already limited forward view.
Other ergonomic oddities that will impact your comfort include hidden exterior handles on the rear doors that are in an awkward, higher-up position, as well as a nontraditional gear selector that takes some getting used to.
More From Cars.com:
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Is the 2025 Toyota Prius a Good Value?
2025 Toyota Prius | Cars.com photo by Corey Watts
Toyota’s hybrid hatchback has long been a standard bearer when it comes to fuel efficiency for the money; it routinely makes Cars.com’s annual Best Hybrids for the Money list. The 2025 Toyota Prius starts at $29,545, and the Nightshade Edition starts at $33,755; AWD adds $1,400 (all prices include destination). Its rivals, meanwhile, start higher: The Honda Accord Hybrid and Hyundai Tucson Hybrid both start around $35,000, while the Toyota RAV4 Hybrid starts around $34,000.
The Prius is also well equipped with safety features. Toyota Safety Sense 3.0 is standard on every Prius and includes forward collision warning with pedestrian detection, automatic emergency braking, adaptive cruise control, lane-centering steering assist, automatic high beams and road-sign recognition. Blind spot warning, rear cross-traffic alert and safe-exit assist are also standard.
Overall, the Prius is an excellent pick for value-minded hybrid shoppers so long as they’re ready to make some comfort and ergonomics trade-offs.
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Cars.com’s Editorial department is your source for automotive news and reviews. In line with Cars.com’s long-standing ethics policy, editors and reviewers don’t accept gifts or free trips from automakers. The Editorial department is independent of Cars.com’s advertising, sales and sponsored content departments.
10 Biggest News Stories of the Week: Toyota Prius Crowds Out Lexus RZ
By Matt Schmitz
September 10, 2025
Share2025 Toyota Prius | Cars.com photo by Corey Watts
Electric vehicles get a whole lot of headlines but still represent a waxing-and-waning fraction of U.S. car sales that currently sits at around 10%. While life has objectively gotten a lot more manageable for EV owners in the past decade, with thousands more public charging stations added every year, switching to all-electric still feels like taking the plug-in plunge. For change-averse Americans, that’s why hybrids present a more palatable transitional choice on the path to a possible all-electric-all-the-time future — fuel economy without the range anxiety of giving up gas entirely. The Toyota Prius continues to stand as a beacon on that path, balancing fuel economy, daily-driver practicality, style and price for bet-hedging buyers.
Related: 10 Biggest News Stories of the Month: Dodge Charger Sixpack Makes Its Case, Tesla Cybertruck Settles
In one of Cars.com’s most popular articles of the past week — reviewer Jennifer Geiger’s comprehensive critique of the 2025 Prius — we tell you how this hybrid among hybrids protects its rep as a reasonable compromise for car shoppers, as well as the things about it that may just make you think twice. Making the grade are gas mileage, specifically the Prius-lineup-best EPA-rated 57 mpg combined; surprisingly eager acceleration, confident handling and generally normal-feeling driving characteristics; forgiving bump absorption; user-friendly infotainment system; generous suite of safety tech; and hard-to-beat sub-$30,000 starting price (all prices include destination charge). Falling short are the Prius’ ho-hum interior appointments; coolness-over-comfort exterior styling that cuts into headroom, visibility and child-safety seat accommodation; and an annoyingly positioned gauge cluster and other components.
“Overall, the Prius is an excellent pick for value-minded hybrid shoppers so long as they’re ready to make some comfort and ergonomics trade-offs,” Geiger concludes in her review.
For our full take on the 2025 Toyota Prius, follow the link below to the No. 2 article on this week’s countdown of most read stories.
If you’ve already made the jump to all-electric and are looking to spend significantly more, however, you may want to check out our pricing report on the updated-for-2026 Lexus RZ. The electric SUV gets 23 more horsepower at the base and 36 more miles of total driving range on a charge, along with an expanded lineup with a new entry-level model (the RZ 350e) and the new range-topping, high-performance RZ 550e F Sport. The power and performance upgrades aren’t free but instead start the 2026 bidding at $3,200 higher than the outgoing model. That puts the price at $47,295 to start, rising incrementally across the four middle trims to top out at $58,295 for the F Sport.
For full details on pricing for the 2026 Lexus RZ — including a trim-by-trim breakdown of features and equipment as well as powertrain specs and driving-range estimates — follow the link below to the No. 3 news story of the week.
Beyond all that, we’ve got headlines on the Hyundai Palisade, Toyota 4Runner, Subaru Solterra, Mazda CX-90, Mercedes-Benz E-Class and much more — so don’t stop reading till the digits double. Here are the top 10 news stories Cars.com readers couldn’t get enough of in the past week:
1. 2026 Hyundai Palisade Review: Growing Gains
2. 2025 Toyota Prius Review: Big on Mileage, Small on Space
3. How Much Is the 2026 Lexus RZ?
4. Which Electric Cars Are Still Eligible for the $7,500 Federal Tax Credit?
5. Here Are the 10 Cheapest New Cars You Can Buy Right Now
6. How Much Cargo Space Does the 2025 Toyota 4Runner Have?
7. 2026 Subaru Solterra Review: Necessary Improvements
8. How Much Is the 2026 Mazda CX-90?
9. 2025 Mercedes-Benz E450 All-Terrain Review: Wearing Your Dress Shoes On a Hike
10. Here Are the 11 Cheapest Electric Vehicles You Can Buy
Cars.com’s Editorial department is your source for automotive news and reviews. In line with Cars.com’s long-standing ethics policy, editors and reviewers don’t accept gifts or free trips from automakers. The Editorial department is independent of Cars.com’s advertising, sales and sponsored content departments.
Assistant Managing Editor-News