7 States Offering Cash Incentives for Electric Vehicle Purchases
The federal government isn’t the only one offering money to potential electric vehicle (EV) owners. Many states also provide additional tax credits that can be stacked on top of the federal discount, potentially saving buyers thousands of dollars. With both federal and state incentives combined, drivers could save upwards of $15,000 on the purchase of an EV, depending on their location.
Understanding EV Tax Credits
Tax credits for EVs are typically structured as rebates, meaning buyers pay the full price upfront and then receive the discount when they file their taxes. However, the federal government’s EV tax credit is unique in that participating car dealerships can apply the discount at the point of sale, eliminating the need for buyers to file for a tax rebate later.
The federal government offers a tax credit of up to $7,500 for new EV purchases. The specific amount depends on factors such as the vehicle model, where it’s manufactured, and its cost. There is also a tax credit of up to $4,000 for used EVs. To see which vehicles qualify for these credits, you can visit the official government website.
States with Generous EV Incentives
In addition to the federal incentive, several states offer their own rebates to make EVs more affordable. Here are some of the most generous state-level discounts currently available:
1. Colorado: Colorado offers up to $7,500 off the purchase of a new EV. The full credit is available for vehicles with a sticker price below $35,000, while cars between $35,000 and $80,000 can qualify for a smaller credit of $5,000.
2. Maine: Maine provides up to $7,500 off a new EV purchase for residents who meet certain income requirements. Those with higher incomes may qualify for a partial credit of $3,500. Additionally, the state offers an “any-income” rebate worth up to $2,000.
3. Massachusetts: Massachusetts offers a range of discounts, including a $3,500 rebate for new or used EV purchases. There are also rebates of $1,500 and $1,000 available for trading in a gas-powered car for an EV through a purchase or lease.
4. Maryland: Maryland provides up to $3,000 off the purchase of EVs costing less than $50,000. The state also offers a 50% discount on the cost of home charger installation, up to $700.
5. Delaware: Delaware’s electric vehicle rebate is worth up to $2,500. Buyers can claim the rebate at the dealership or apply for it afterward.
6. New York: New York residents can receive up to $2,000 off the purchase or lease of a new EV through the Drive Clean Rebate program. This credit can be applied directly to the sticker price at participating dealerships.
7. California: Although California was a pioneer in EV rebates, the available funds have decreased over time. However, some major cities in California still offer their own rebates, such as a $2,000 rebate for income-eligible customers of Peninsula Clean Energy.
Factors Influencing State-Level Incentives
The generosity of state-level incentives often aligns with a state’s overall support for clean energy. Additionally, many states prioritize improving air quality by encouraging the adoption of EVs. It’s worth noting that there are many other states with programs awaiting more funding or considering new EV rebates. Online tools like EV Life and the US Department of Energy’s search tool can help individuals find information about their state’s specific incentives.
Local EV Incentives
Beyond federal and state programs, local governments and utility companies may offer additional incentives for EV purchases. It’s worth checking with your city or electricity provider to see if they have any additional rebates that can be stacked on top of federal and state tax credits.
In conclusion, purchasing an EV can be a financially savvy decision, especially with the combination of federal and state tax credits. By taking advantage of these incentives, buyers can save thousands of dollars and contribute to a cleaner environment. With more states considering new EV rebates and local incentives available, now is an opportune time to explore the world of electric vehicles.