The move toward electric vehicles is gaining momentum. By 2040, experts project that 70% of new vehicles will be EVs. While this is certainly good news, it seems the transition to zero-emission vehicles can’t come soon enough as concerns about environmental sustainability and global warming continue to rise. To help encourage EV adoption, governments are working to incentivize ownership. Below, we delve into some of the best EV incentives to help you decide where your next electrifying ride should be.
Before diving into the best electric car incentives by state, it’s important to mention the federal incentives. Depending on eligibility, buyers can claim a federal income tax credit of up to $7,500 for new electric vehicles. There have been recent changes to this incentive so it can be a little confusing. The credit now varies based on battery capacity and the make/model of the vehicle, so be sure to consult official IRS guidelines or a tax professional.
Here are the top 5 EV incentives by state.
The Golden State sets the standard when it comes to support for electric vehicles and clean energy. Through the California Clean Vehicle Rebate Project (CVRP), qualified buyers can receive between $1,000 to $7,500 in rebates for the purchase or lease of eligible new electric, plug-in hybrid, and fuel cell vehicles.
As of August 15, 2023, eligible CVRP recipients can also get a $2,000 charge card to use at public EV charging stations. Now that’s a lot of free mileage! Other perks for EV drivers include a decal to use carpool lanes, even if driving solo. Various cities and utilities provide additional rebates or charging credits. Check out DSIRE for more details.
New York is making great strides in promoting EV adoption with 3 million EVs projected to be on NY roads by 2030. To help push the EV movement along, the Empire State is offering a Drive Clean Rebate of up to $2,000 for new EV purchases or leases. This point-of-sale rebate is deducted from the sale or lease price when you pay. The rebate amount depends on the EPA all-electric range. Buyers receive the maximum rebate if their car gets more than 200 miles of range, $1,000 if the range is between 40 to 199 miles, and $500 if it’s less than 40 miles. Before signing on the dotted line, make sure to check the list of 60 car models that are actually eligible for the rebate (model year isn’t a factor).
There are also state and utility programs that help institutions like businesses, municipal centers, schools, and others to cover the cost of installing charging stations. One example is Charge Ready NY 2.0, which offers incentives ranging from $2,000 to $4,000 for public, private, and not-for-profit organizations to install charging stations at municipal or state-owned workplaces, apartment buildings, or public facilities.
Colorado also offers credits comparable to New York and California through its Innovative Motor Vehicle Credit. Through the program, buyers of eligible EVs (all-electric or hybrid) can receive a refundable income tax credit of $5,000 in fiscal years 2023 and 2024, regardless of whether it’s a purchase or lease. In 2025, that amount goes down to $3,500 so the time to buy is now. Trucks have their own tax credit incentives as well.
Colorado is also looking to roll out a new Vehicle Exchange Colorado (VXC) program. VXC will offer rebates to help income-qualified residents recycle their old or high-emission cars and replace them with EVs.
In the scenic state of Oregon, green initiatives are in high demand. The state’s Clean Vehicle Rebate Program offers incentives ranging between $750 to $7,500. EV purchasers have three options under the program. The Standard Rebate is based on vehicle eligibility and offers up to $2,500. Low-income households can also receive $5,000 for new or used EVs through the Charge Ahead Rebate. Then there is the combination of the two programs with a maximum rebate of $7,500. The program is so popular that for 2023 the rebates are suspended until the following year.
Next door to New York is New Jersey, the Garden State, with its own enticing list of incentives for EV drivers. Charge Up New Jersey has a total of $30 million in funding annually for 2023 and 2024 for its incentive program. Curious shoppers can check out the user-friendly website to see how much funding is still available for the program. The incentives, which are applied at the point-of-sale, are calculated based on $25 per mile of all-electric range and are capped at $4,000. The program also offers $250 for purchasing an eligible EV charger.
Additionally, in New Jersey, buying, renting, or leasing a Zero Emission Vehicle (ZEV) exempts buyers from paying any state sales tax, a savings of more than 6.5%.
Transitioning away from gasoline and diesel use to EVs just makes sense. It offers critical environmental benefits. Plus, with the number of generous federal and state incentives available, it also delivers economic advantages. It’s a win-win for the planet and your pocketbook.
Being smart also means checking the most recent state-specific and federal information as these incentives can change, and consulting with a tax professional to fully understand the benefits available to you.
Here at eveelife.com, we predict that as the EV industry continues to grow, more incentives are likely to emerge, making it an opportune time to consider making the switch. You can find a comprehensive list of all these incentives and more at the Database of State Incentives for Renewables & Efficiency (DSIRE).
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Published August 30, 2023 12:27PM
Eveelife is an eco-oriented lifestyle platform that helps consumers make more purposeful choices about how they live and what they consume. We do it by curating content and products that help them make more conscious, carbon-free choices while amplifying their EV ownership experience.
