Incentives for Plug-in Hybrids and Electric Cars

By · July 26, 2015

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Federal Incentives

We're doing our best to track the growing list of federal and state-based incentives for purchasing an electric car or plug-in hybrid. See how much you can save to get behind the wheel of an electric-drive plug-in vehicle. Help us keep the list up-to-date by letting us know if you have info about new or changing incentives.

New Plug-in Car Purchases

Buyers of plug-in hybrids and electric cars benefit from a tax credit of $2,500 to $7,500, depending on the size of the battery in the car. On the low end of the spectrum, cars with 4 kWh battery packs will qualify for a $2,500 tax credit. The credit maxes out at $7,500 for cars with a 16 kWh battery pack, like the Chevy Volt. The credits were provided as part of the American Recovery and Reinvestment Act, otherwise known as the “stimulus bill.” The incentive begins phasing out after an automaker sells 200,000 vehicles that are eligible for the credit.

Better Electricity Rates

Many electric utilities around the country offer special rates, including time-of-use (TOU) rates, to reduce the cost of powering an electric car or plug-in hybrid. The reduced EV rate can significantly reduce the cost of charging your car. Check with your local utility company for exact rates and other details.

Discounts on Insurance

Several major insurance companies, such as Farmers, offer discounts of 5 percent or more for owners of electric and hybrid cars. Inquire with your insurance agent for details. We will continue to investigate which companies offer the best rates for EV owners and will post to this page.

Charging Equipment

Some states offer EV buyers and businesses a credit for the purchase and costs of charging equipment. Previous federal perks, available through 2013, are no longer available.

Conversions

Drivers converting a car into a plug-in hybrid, or a gas-powered car into an electric vehicle, had received a tax credit equal to 10 percent of the conversion cost. But that federal incentive ended on December 31, 2011. Individual states, such as Colorado and Florida, provide additional incentives, such as rebates and state tax credits.

State Incentives

Arizona

Reduced license fees are available for electric cars and some plug-in hybrids. A tax credit of up to $75 is available to individuals for the installation of EV charging outlets in a house constructed by a taxpayer. Carpool lane access is available for pure electric cars.

California

The Clean Vehicle Rebate Project (CVRP) offers rebates for the purchase or lease of qualified vehicles. The rebates offer up to $2,500 for light-duty zero emission and plug-in hybrid vehicles that the California Air Resources Board (ARB) has approved or certified. The rebates are available on a first-come, first-served basis to individuals, business owners, and government entities in California that purchase or lease new eligible vehicles. In periods when funding exceeds current budgets, waiting lists can form. For more information, including a list of eligible vehicles and other requirements, see the CVRP website.

In April 2011, Los Angeles Mayor Antonio Villaraigosa announced a pilot program to provide charging station rebates of up to $2,000. The value of the rebate will depend on the type of charger and equipment installed and is apparently limited to the first 1,000 applicants. To qualify for the rebate, customers must participate in the Los Angeles Department of Water and Power's (LADWP) Residential Time-of-Use Rate, which provides a significant discount for charging your electric vehicle during "off-peak" hours. Residents of L.A. who wish to install a Level 2 charger at their home should, beginning May 1, 2011, visit the LADWP site to apply for available rebates.

Sacramento offers free parking to individuals or small businesses certified by the city's Office of Small Business Development that own or lease EVs with an EV parking pass in designated downtown parking garages and surface lots. Free EV charging is also provided in several parking garages.

For public agencies, the Bay Area Air Quality Management District’s (Air District) PEV Rebate Program provides funding through vouchers that are issued in these amounts: (1) $2,500 per light-duty zero-emission vehicles, including battery electric and hydrogen electric vehicles; (2) $1,000 per light-duty plug-in hybrid electric vehicles; (3) $500 per zero-emission neighborhood electric vehicles; and (4) $2,500 per zero-emission motorcycles. Vouchers may be redeemed on a reimbursement basis, and must be issued prior to the purchase or lease of vehicles. For more information: http://www.baaqmd.gov/Divisions/Strategic-Incentives/On-Road-Vehicles/Pu...

An unlimited number of white HOV access stickers were issued beginning on January 1, 2011. Cars that meet these requirements are typically certified pure zero emission vehicles (100 percent battery electric and hydrogen fuel cell) and compressed natural gas (CNG) vehicles. Per AB 266, the expiration date for the white stickers was extended to January 1, 2019.

Green Clean Air Vehicle decals were originally available to the first 40,000 applicants that purchased or leased cars meeting California's transitional zero emission vehicles (TZEV) requirement, also known as the enhanced advanced technology partial zero emission vehicle (AT PZEV) requirement. Per SB 286, the expiration date for the green decals has been extended to January 1, 2019. Per budget trailer bill, SB 853 (Statutes 2014, chapter 27), the green decal limit was increased by 15,000 to 55,000 decals effective July 1, 2014. Now, per AB 2013, effective January 1, 2015, an additional 15,000 decals will be available for a new maximum of 70,000.

Solo drivers of conventional hybrid gas-electric cars that had been issued yellow stickers are no longer eligible for HOV access.

Many utilities offer discounted rates for residential vehicle charging during off-peak hours.

The "Remove II Program" is administered by the San Joaquin Valley Air Pollution Control District (APCD) and provides incentives for the purchase of low emission passenger vehicles, light duty trucks, small buses, and trucks with Gross Vehicle Weight Ratings of 14,000 pounds or less. The program offers between $1,000 and $3,000 per vehicle and varies according to the emission certification level and size of the vehicle. Vehicles must be powered by alternative fuel, electric, or hybrid electric motors. The San Joaquin Valley Air Pollution Control District is made up of eight counties in California’s Central Valley: San Joaquin, Stanislaus, Merced, Madera, Fresno, Kings, Tulare and the San Joaquin Valley Air Basin portion of Kern. Rebate vouchers are available for the purchase of electric vehicles in qualifying counties up to $3,000.

In June 2009, Sony Pictures Entertainment established an employee incentive of up to $5,000 when they buy either a hybrid electric vehicle or install solar voltaic panels on their residence.

  • Related Law: CA AB-1092 - enacted summer 2014: California bill, now law, which requires new construction projects with four or more off-street parking spaces to include at least one EV charging station per every four off-street parking spaces. Details: http://leginfo.legislature.ca.gov/faces/billNavClient.xhtml.

Colorado

Colorado offers some of the nation’s most generous tax credits for electric cars and plug-in hybrids. The credits are capped at $6,000, and available to the first owner that registers the vehicle in Colorado. (Used vehicles are only eligible if they have never been registered in Colorado)

For details, see the program rules from the Colorado Department of Revenue (PDF).

Grants are also available to local governments for the installation of EV charging stations. Grants are prioritized based on the local government's commitment to energy efficiency. For assistance with grants contact Colorado-based plug-in car readiness website.

  • Related Law:CO SB-126 - enacted summer 2014: Colorado bill, now law, which prohibits a landlord or condominium owner association from limiting a tenant or unit owner from installing EV charging equipment for their own use at the residence. Details: http://legiscan.com/CO/text/SB126/2013.

Connecticut

The Connecticut Hydrogen and Electric Automobile Purchase Rebate (CHEAPR) program offers up to $3,000 per vehicle for battery electric, fuel cell electric and plug-in hybrid electric vehicles. CSE anticipates issuing rebates for about 325 vehicles in this initial phase of the program on a first-come, first-served basis. Individuals are limited to one rebate, however, businesses, nonprofit organizations and government entities can receive two rebates.

Since 2005, New Haven, Connecticut has provided free metered parking for hybrids and EVs. Parking permits are available from the city.

Delaware

Delaware announced a new rebate program on July 16, 2015. You can receive a rebate of $2,200 toward the purchase or lease of a new qualified electric vehicle, or $1,100 towards retrofitting an internal combustion engine into a dedicated electric vehicle. More details are available here: http://www.dnrec.delaware.gov/energy/Pages/The-Delaware-Clean-Vehicle-Re...

Delawareans may also apply for a $500 rebate for the purchase of electric vehicle charging equipment. Get more info at http://www.dnrec.delaware.gov/energy/Pages/The-Delaware-EVSE-Rebate-Prog...

This pdf provide an overview of the Delaware rebate programs: http://www.dnrec.delaware.gov/energy/Documents/Transportation%20Program/...

District of Columbia

Plug-in vehicles are exempt from the excise tax imposed on an original certificate of title, and a reduced vehicle registration fee of $36.

Florida

Electric cars are exempt from most insurance surcharges. Electric cars are granted access to carpool lanes.

JEA, a utility company in northeastern, JEA, is offering a rebate of up to $1,000 for purchased or leased plug-in vehicle: $500 rebate for a plug-in vehicle with a battery size smaller than 15 kWh; and a $1,000 rebate for a plug-in vehicle with a 15 kWh or bigger battery size.

Georgia

The Georgia tax credit will no longer be effective as of July 1, 2015. Previously, the state offered income tax credits for up to 20 percent of the cost of an electric car—maximum of $5,000—or 10 percent (with a max of $2,500) for a car conversion to use an “alternative fuel” including electricity.

Contact: James Udi, Environmental Specialist, Georgia Environmental Protection Division, james_udi@dnr.state.ga.us.

Georgia Power, the largest utility in the state, has a $12 million pilot program that offers incentives to residential customers of $250 (and up to $500 for businesses) for installing certain types of EV chargers.

Hawaii

Qualified plug-in electric vehicles affixed with special state-issued license plates may use HOV lanes regardless of the number of passengers and are exempt from parking fees charged by any non-federal governmental authority. The exemptions are effective through June 30, 2020. Previous rebates have expired.

Illinois

In late March 2015, representatives of the Illinois Environmental Protection Agency announced that consumers who purchased a new plug-in vehicle in 2014, or later, will not receive a $4,000 rebate from the state. The rebate program was started in 1998. There are currently no plans to reinstate the program.

For questions, contact Darwin Burkhart, Manager, Clean Air Programs, Illinois Environmental Protection Agency and Chicago Area Clean Cities Coalition. darwin.burkhart@illinois.gov; http://www.illinoisgreenfleets.org

Louisiana

The state offers an income tax credit worth 50 percent of the cost premium of an electric car, plug-in hybrid, or converting a vehicle. A taxpayer may instead take a tax credit worth 10% of the cost of the motor vehicle or up to $3,000, whichever is less. Similar credits are available for charging equipment installation. (Reference House Bill 110, 2009, and Louisiana Revised Statutes 47:6035)

Maryland

State-based credits are offered, while funding is available, based on the vehicle’s battery capacity—based on $125 times each kilowatt-hour, not to exceed $3,000.

You may also be eligible for a one-time excise tax credit, up to $1,000, when you purchase a qualifying plug-in electric vehicle. Effective July 1, 2014 through June 30, 2017, an individual may be entitled to receive an excise tax credit on a qualifying plug-in electric vehicle regardless of whether they own lease the vehicle. Business entities may also qualify for the tax credit on up to ten vehicles. Credits requests received are processed subject to the availability of funds.

The criteria and process for applying is available through the Maryland Department of Transportation.

Drivers of plug-in electric vehicles, titled and registered in Maryland, will be allowed to use the HOV lanes in Maryland regardless of the number of passengers, providing they obtain and display an HOV permit on the vehicle. The vehicle owner(s) must complete the Application for Plug-in Electric Vehicle HOV Permit (form VR-335). The permit will be valid through September 30, 2017. You may download the form for the permit from Motor Vehicle Administration website at: http://www.mva.maryland.gov/Resources/VR-335.pdf

Massachusetts

The Massachusetts Offers Rebates for Electric Vehicles (MOR-EV) program provides incentives to Massachusetts drivers who purchase or lease for 36 months a new qualified electric vehicle. For a complete list of eligible vehicles and information about the MOR-EV program, learn more at www.mor-ev.org. Rebates of up to $2,500 are available to Massachusetts residents who purchase or lease a qualified vehicle. Only vehicles listed on the MOR-EV program website are eligible for a rebate. The types of vehicles include battery electric cars, fuel cell electric cars, plug-in hybrid electric vehicles, and zero-emission motorcycles. Visit the MOR-EV program website for a complete list of eligible vehicles and to begin the application process.

Michigan

Consumers Energy offers a reimbursement of up to $2,500 to help customers cover the purchase, installation, and wiring of a Level 2 EV charging station. The program expires at the end of 2014.

Montana

A tax credit of $500 is available for an electric car conversion.

New Jersey

Zero-emissions vehicles sold, rented, or leased in New Jersey are exempt from state sales and use tax. This exemption is not applicable to partial zero emission vehicles, including hybrid electric vehicles. ZEVs are defined as vehicles certified as such by the California Air Resources Board. For more information, visit the New Jersey Department of the Treasury website.

Electric cars qualify for access to carpool lane. In addition, the New Jersey Turnpike Authority offers a 10 percent discount on off-peak New Jersey Turnpike and Garden State Parkway toll rates through NJ EZ-Pass for drivers of vehicles that have a fuel economy of 45 miles per gallon or higher and meet the California Super Ultra Low Emission Vehicle standard.

Ohio

In Cincinnati, EV drivers get free parking at any meter in the city and at two city-owned parking garages. Applications are available from the city.

Oregon

The Oregon Department of Energy is no longer offering a $1,500 tax credit for the purchase of an electric vehicle. A tax credit, capped at $750, to cover 25% of the cost of purchasing and installing an EV charger, is still available.

For details, contact: Deby Davis, Program Analyst, Oregon Department of Energy, deby.s.davis@state.or.us

Pennsylvania

The program provides rebates to consumers for the purchase of new electric cars and plug-in hybrids. Leased vehicles are not eligible to receive a rebate. Only purchased vehicles are eligible to receive a rebate. A new vehicle is defined by having an odometer reading of less than 500 miles at the time of purchase to be eligible for a rebate.

A $2,000 rebate is available for EVs and PHEVs with battery capacity equal/greater than 10 kWh. The rebate drops to $1,000 for batteries less than 10 kWh.

The rebates are only available to the first 500 qualified applicants. Consumers may submit applications for up to 6 months after the date of purchase. Consumers should be aware that funds may be depleted before their rebate application can be processed. On June 30, 2014, the rebate amounts offered will be reassessed and likely reduced if funds remain. As of April 30, 2014, about 400 rebates remained.

Guidelines and forms are available from the Pennsylvania Department of Environmental Protection.

Rhode Island

The town of Warren offers residents with plug-in cars an excise tax exemption and reduced registration, described as an exemption "from the tax imposed by this chapter in an amount not to exceed one hundred dollars ($100) motor vehicles registered in Warren."

South Carolina

A state income tax credit equal to 20 percent of the federal fuel cell, advanced lean burn, hybrid electric vehicle, and alternative fuel vehicle credits is available to South Carolina resident taxpayers who are eligible for, and claim, the federal credits. This credit applies to electric cars and plug-in hybrids.

Tennessee

The $2,500 incentive offered to plug-in vehicle buyers in Tennessee is no longer available. The incentives were originally open to the first 1,000 buyers of the Nissan LEAF and Chevy Volt in 2010. It was a joint program by the Tennessee Department of Economic and Community Development and The EV Project. The national EV Project stopped taking enrollment on Jan. 31, 2013. (By that point, 772 rebates had been issued in Tennessee, totaling $1.8 million—about $700,000 short of its original goal, according to the Associated Press.)

Texas

The Texas Commission on Environmental Quality revised the Light-Duty Motor Vehicle Purchase or Lease Incentive Program to be a statewide program to provide financial incentives up to $2,500 for the purchase or lease of eligible new plug-in electric vehicles. The city of San Antonio offers free metered parking for EVs. The city of Austin offers rebates up to $1,500 for the purchase of EV charging equipment.

Utah

The state provides an income tax credit up to $750 for a plug-in vehicle and up to $2,500 for a conversion. For details, contact Mat Carlile, Energy Program Coordinator, Utah Department of Environmental Quality, Division of Air Quality, mcarlile@utah.gov.

Washington

Electric vehicles are exempt from the 6.5 percent sales tax and plug-in hybrids are exempt from the 0.3% motor vehicle sales tax. Tax exemptions also apply to charging station equipment and service. These tax exemptions expire on January 1, 2011.

Canada

British Columbia

B.C. residents will get up to $5,000 off the sticker price of a qualifying clean energy vehicle starting Dec. 1, 2011. The rebate includes qualifying new vehicles that are battery electric, fuel-cell electric, plug-in hybrid electric and those that operate on compressed natural gas. There are about 30 such vehicles for fleets in B.C., and 10 to 20 for residential use. As part of the $17-million program, the province is also providing funding for new charging stations and upgrades to hydrogen fueling stations at existing facilities. Homeowners who want to install a charging station will get a $500 mail-in rebate for eligible units.

Ontario

Ontario rebates ranging from $5,000 to $8,500 to individuals, businesses and organizations that purchase or lease a new plug-in vehicle. The rebates will only be offered to the first 10,000 qualified applicants.

The Hudson Bay Company is offering free valet service for electric cars.

Comments

· · 3 years ago

Brad, It's worth pointing out that the tax credit in Colorado is refundable, in contrast to the federal one. The link to the information:
http://www.colorado.gov/cs/Satellite?blobcol=urldata&blobheader=applicat...

The credit for a Leaf is $6000, as you suggest. (Assuming that the legislature doesn't do away with the incentives next year... one never knows!) The tax credit is reduced for leased cars, based on the capitalized cost.

· · 3 years ago

"Washington

Electric vehicles are exempt from the 6.5 percent sales tax and plug-in hybrids are exempt from the 0.3% motor vehicle sales tax. Tax exemptions also apply to charging station equipment and service. These tax exemptions expire on January 1, 2011."

The expiration is now extended to July 1, 2015.

Here is the document that Nissan maintains explaining the incentives.

www.nissanusa.com/ev/media/pdf/incentives/nissan-leaf-incentive-54.pdf

· Mike I (not verified) · 3 years ago

I don't know if this is on anyone's radar, but my tax accountant told me that in 2012 the solar and EV tax credits will not offset AMT. This means that if you currently pay tax based on AMT, not conventional tax calculation, you will not get any benefit from the federal EV/Plug-In tax credit. Also, if the gap between your conventional tax and calculated AMT is small, you will only get the benefit of the tax credit to the extent that your conventional tax is greater than your AMT. This has happened before and congress has extended the tax credits to offset AMT in prior years. However, I haven't heard anything about them extending it for 2012.

· · 3 years ago

Hey Brad, thanks for putting together this listing of incentives. One correction, the Clean Vehicle Rebate Project (CVRP), funded by the California Air Resources Board (ARB), provides rebates of up to $2,500 for battery electric vehicles and $1,500 for plug-in hybrid electric vehicles. This year, the CVRP was funded with an allocation of $15 million and currently the project has approximately $9 million left. I should note that the project is funded on a year to year basis, and we expect it to continue until 2015.

To learn more about available funding or on how to access a rebate, please visit the website www.energycenter.org/cvrp.

· · 3 years ago

Brad, I am surprised to hear the Indiana incentives are gone, but you appear to be correct. But there are some incentives you have missed. Here is one from Think's US website:

"For consumers in ZEV States (CA, CT, ME, MD, MA, NJ, NM, NY, OR, PA, RI, VT) Think offers a $4,000 incentive"

I bought mine from NC, so this did not apply hence I never tried to figure out how it is funded.

Here is the source:
http://www.thinkev-usa.com/buy-think-city/

· · 3 years ago

Brad, I am surprised to hear the Indiana incentives are gone, but you appear to be correct. But there are some incentives you have missed. Here is one from Think's US website:

"For consumers in ZEV States (CA, CT, ME, MD, MA, NJ, NM, NY, OR, PA, RI, VT) Think offers a $4,000 incentive"

I bought mine from NC, so this did not apply hence I never tried to figure out how it is funded.

Here is the source:
http://www.thinkev-usa.com/buy-think-city/

· · 2 years ago

Ugh, NY State has essentially nothing, but plenty of taxes that I still get to pay.

· · 2 years ago

Illinois also offers 50% rebate on EVSE equipment purchase and installation, as well as discounted vehicle registration- $36 for a 2-year cycle, vs $101 per year for standard vehicle registration.

· · 2 years ago

I don't see anything up here for Texas. According to the Nissan website my state offers this:

ELECTRIC VEHICLE CHARGER REBATE: AUSTIN
Rebate of 50% of the actual cost of Level II EV charger and installation, up to a maximum of $1,500.

· · 47 weeks ago

I liked your article. It is very useful. In my point of view everyone must use electric cars or hybrid cars because it is fuel efficient and it has no negative impacts on the environment unlike fuel cars. Fuel cars are the main reason of pollution.By using these hybrid and autonomous car we can keep our environment pollution free. One thing I want to add here very soon Google is going to hit the ground by its unique invention autonomous car which is also known as self driving car. For more information you can go through this http://www.slideshare.net/johnsonmartin467/autonomous-car-38563634

· · 42 weeks ago

We should all try driving less, which would reduce the accident rate as well as saving energy.

· · 36 weeks ago

I'm trying to decide if buying the 2015 Smart car is better than the lease. The salesperson says lease due to battery technology changes over next few years...But I've never leased a vehicle and am fearful about excessive wear, and a few other things.
So, I don't get the $7,500. federal tax credit, but is that so much to weigh in my decision..
If I buy the car and the battery Smart offers is so much better in a few years, I'm wondering if I will be able to exchange for upgraded battery,,,,,but salesperson has no input regarding this idea.....
I guess I'm looking for input...the new crop of cars are coming into Oakland next week, and I keep going back and forth, but need to make decision....

· · 21 weeks ago

This needs to be updated. Federal tax credits for hardware installations are recently included and in effect and NYS has similar charging equipment credits for businesses.

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  7. How to Use the PlugShare EV Charging Station Tool
    Locate EV charging stations and optimize their use with a powerful mobile app.
  8. Quick Charging of Electric Cars
    Add 50 to 60 miles of range in about 20 minutes. Here's how.
  9. The Real Price of EV Public Charging
    Compare the cost of charging on the road to what you pay at home.
  10. Electric Vehicle Charging Etiquette
    Thou shalt charge only when necessary. And other rules to live by.