With more mainstream curiosity surrounding EVs, bolstered by a ten-year extension in federal tax credits under the Inflation Reduction Act, there’s never been a more exciting time to buy an EV, and there has never been a wider selection of options. What many US consumers may not be aware of, however, is what electric vehicle tax credits may be available to them at the state level in addition to discounts or money back on EV charger installations. Luckily, we’ve broken it all down, state-by-state, below. Note: This data has been updated as of January 2025.
The benefits will not last forever, but to further EV adoption in the US, the federal government and its respective state entities offer several perks to consumers looking to go all-electric. With the Inflation Reduction Act enacted by the Biden Administration, we hope federal tax credits for electric vehicles will remain extended for another decade, but state credits and rebates move at an entirely different pace. business electric car charging point
That being said, there are plenty of options in a majority of states that you can and should take advantage now. It’s important to understand how these incentives or exemptions vary from the more all-encompassing credits at the federal level.
There are important distinctions between both federal and state electric vehicle tax credits. Most obvious, federal credits apply to the entire United States as a whole while state credits and rebates vary by each territory and can be far more abundant… or not. It all depends on where you live.
For example, while the federal electric vehicle tax credit is quite complicated under its revised terms in the Inflation Reduction Act, the concept of the credit itself remains quite cut and dry. US consumers may qualify for up to $7,500 in federal tax credit for an electric vehicle.
There are a bunch of other factors that went into play on January 1, 2023, when the new terms kicked in, and those have already changed a few times as well. If you’d like to learn more about electric vehicle tax credits at the federal level, check out those details here.
Electric vehicle tax credits, rebates, and exemptions vary much more at the state level and can even be more granular to specific counties or energy companies, depending on whether it’s a state-level or private utility perk available to you.
If that’s confusing, stick with us. We’ve laid it all out piece by piece for you below. Just find your state in the table of contents above, give it a tap or click, and see what sort of options are available. There should be plenty—for most states, at least.
The US Department of Energy and its Alternative Data Fuels Center (AFDC) update state-level information annually after each state’s legislative session ends. That said, some pages are updated following newly signed legislation. We visited many of the state incentive websites to confirm the latest perks available for a new EV purchase or charger installation.
Speaking of that, many states offer credits or rebates for electric vehicle purchases or leases, but utility companies also offer incentives for home charger installations. Rather than muck things up further, we’ve separated these benefits into two separate lists for you below, each sorted by participating states. If your state isn’t on here, we recommend writing your respective members congress.
Let’s start with the tax credits available for the purchase or lease of a new or used electric vehicle.
Here it is – the complete list of tax credits and rebates for new or used electric vehicle purchases or leases. Hopefully your state is on here and better yet, there are some sweet perks at your disposal. Have a look.
Now that we’ve broken down all the tax credits, rebates, and exemptions at your disposal when acquiring an electric vehicle, it’s important to think about how and where you plan to charge it.
If you are fortunate enough to own a home, you may want to consider installing a Level 2 EV charger. In addition to potentially raising the value of your home, you can more easily charge your new EV in the comfort of your garage or driveway, saving additional money during off-peak hours.
Better yet, many states or utility companies operating within them offer tax credits or rebates on the equipment and installation of these electric vehicle chargers. How does your state stack up? Have a look below.
Between our federal electric vehicle tax credit breakdown and the details above, you should have an arsenal or information at your disposal to determine what you may and not qualify for in the US. That being said, it never hurts to seek more information if you so choose. Knowledge is power.
Much of the data above was gathered from the Alternative Fuels Data Center – an impeccable resource that allows you to tap or click your respective state and research what options might be available to you and your electric vehicle.
Speaking of which, when you do decide on the ideal electric vehicle for you, be sure to double-check if it qualifies for federal tax credits, which can be combined with your benefits at the state level to maximize your money back.
As you may have noticed, we’ve included links to each and every website pertaining to a given tax credit, rebate, or exemption for electric vehicles or their chargers. You can click each to learn more and explore further to see if there are any other benefits available to you in your state.
We hope with knowledge, you’ll be able to maximize your cash back on your electric vehicle and/or charger purchase, whether its through a tax credit or rebate. Good luck!
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car charging business Scooter Doll is a writer, designer and tech enthusiast born in Chicago and based on the West Coast. When he’s not offering the latest tech how tos or insights, he’s probably watching Chicago sports. Please send any tips or suggestions, or dog photos to him at scooter@9to5mac.com