Incentives

The EV Incentive Shuffle: What’s Still On the Table in 2025

If you’ve been thinking about buying an EV, you’ve probably noticed: the incentive landscape is changing faster than you can say “tax credit.”

From new federal rules to evolving state programs, here’s what’s actually happening right now — and how to make sure you don’t leave thousands on the table.

The Big Picture

Let’s start with the good news: EV incentives aren’t gone — they’re just getting smarter.

The federal Clean Vehicle Tax Credit (Section 30D) still offers up to $7,500 off qualifying new EVs and plug-in hybrids. But there’s a catch: it now depends heavily on where the vehicle and its battery components are made.

Cars that meet the “North American assembly” and “battery materials” rules qualify for the full credit. Others get partial — or none.

Pro tip: you can now get the credit upfront at the dealership instead of waiting for tax season. (Game-changer.)

What’s Hot at the State Level

California: Still leading the pack with Clean Vehicle Rebate Project (CVRP) grants for low- and moderate-income buyers — up to $7,500 for new EVs and $2,000 for used ones. Combine that with utility rebates (PG&E, SCE, LADWP, etc.), and you can shave $9,000+ off your total cost.

New York: The Drive Clean Rebate gives up to $2,000 off qualifying EVs, plus extra savings for income-based applicants.

Colorado: Adds a state credit of $5,000 for 2025 purchases — and yes, that stacks with the federal one.

Texas: The Light-Duty Motor Vehicle Purchase Program reopened this year with $2,500 rebates, focusing on income-qualified drivers and cleaner fleets.

Bonus tip: Check if your utility company offers charger rebates or free installation help — many do (and they don’t exactly shout about it).

Charger & Home Upgrade Incentives

Don’t sleep on the home charging perks. The federal Alternative Fuel Infrastructure Credit covers 30% of installation costs (up to $1,000 for homeowners).

And in some states — like California — homeowners can get a free smart Level 2 charger through programs like the EVEE Smart Charger Initiative. (Yes, free.) See if you qualify.

For the Tax Nerds (We See You)

Here’s a simplified cheat sheet:

How to Play It Smart

Double dip: You can often combine federal, state, and utility incentives.
Act fast: Some programs (like California’s CVRP) close once funding runs out.
Stay current: Eligibility rules can change every quarter — bookmark your state’s energy agency.
Go local: If you’re part of a disadvantaged community (DAC zone), you may qualify for additional grants or free charger programs.