Which States Offer Incentives for Electric Cars in the USA?

Electric vehicles are much greener and cleaner for the environment than regular gasoline cars. The only emissions caused by electric cars are those that are a result of producing the cars and those that are a result of generating electricity to charge the cars. But tailpipe emissions are zero for all-electric cars.

Because of the lack of tailpipe emissions, electric vehicles are much preferred to gasoline cars, especially with the imminent threat of global warming and climate change caused by burning fossil fuels.

Because of their positive impact on the environment, governments worldwide are trying to encourage people to switch from gasoline cars to electric cars.

If everyone using gasoline cars made the switch, the amount of fossil fuels being used would decrease dramatically.

However, the issue arrives at the high upfront costs of electric vehicles and electric vehicle supply equipment (EVSE). Electric vehicles are much more expensive than gasoline cars, and many people are not willing to make that switch.

To incentivize people to buy electric cars, most of the states in the USA have some form of state legislation that provides tax credits and rebates on buying electric vehicles, on the fleet acquisition, and on the purchase and installation of electric vehicles charging equipment, as well as exemptions from emissions testing, and reductions in utility rates at certain times of the day.

Incentives for Electric Cars According to Every State

Let’s take a closer look at the incentives for electric cars offered by some of the US states:

Arizona

Tucson Electric Power (TEP) customers in Arizona are eligible for a rebate of up to 75% of the costs involved in installing electric vehicle supply equipment (EVSE). TEP also offers a 5% decrease in rates for charging for people who charge their electric cars in off-peak hours.

California

California is a state with a whole host of incentives for electric cars. The Clean Vehicle Rebate Project (CVRP) offers rebates on the purchase or lease of zero-emission vehicles (ZEVs) and plug-in hybrid electric vehicles (PHEVs) between $750 and $4,500 depending on the type of vehicle.

A residential program under Property Assessed Clean Energy (PACE) also lends property owners funds to set up EVSE in their homes.

A Fast Charge Program set up by Pacific Gas, and Electric (PG&E) covers the costs of installing DC fast chargers and the necessary infrastructure.

Under the program, there is also a rebate of up to $25,000 per charger for those chargers installed in underprivileged communities.

PG&E also offers rebates on the purchase or lease of EVs of up to $800 for residential customers and lower rates for charging during off-peak hours.

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Colorado

EVs registered in Colorado are entitled to a tax credit depending on the vehicle category and the tax year. The Gunnison County Electric Association’s residential customers are also offered rebates for purchasing and installing EVSE of up to 70%.

Holy Cross Energy helps commercial and residential customers set up Level 2 chargers by paying upfront costs that the customers can repay over 3 years.

Connecticut

The Connecticut Hydrogen and Electric Automobile Purchase Rebate Program (CHEAPR) offers rebates on purchasing or leasing EVs or hydrogen vehicles of up to $5,000 for specific models.

Gorton Utilities also offers rebates to customers of $2,000 for purchased EVs and $1000 for leased EVs, as well as rebates for the installation of level 2 chargers for certain customers. Norwich Utilities also offers its customers EV and EVSE rebates.  

Delaware

Under the clean vehicle rebate program, the state offers rebates between $1,000 and $2,500 for vehicles that cost under $60,000. There is also a rebate program for EVSE and level 2 chargers covering 75% costs for commercial stations and 90% for government and nonprofit buildings.

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Florida

The Jacksonville Electric Authority, the Orlando Utilities Commission, and the Kissimmee Utility Authority all offer rebates on the purchase or leasing of EVs.

Duke Energy’s Park and Plug program offers Level 2 and DC fast-charging stations for free to businesses, workplaces, and high-traffic areas.

Georgia

Vehicles with alternative fuel license plates can use HOV and HOT lanes without paying any toll. Georgia Power offers rebates to residential customers of $250 for level 2 charging equipment and a time-of-use electricity rate to EV owners.

Hawaii

The public utility commission in Hawaii provides a rebate program administered by Hawaii Energy to incentivize the installation and upgrade of EVSE.

The rebate depends on whether a new system is being installed or if an existing one is being upgraded.

Level 2 stations can get between $3,000 and $4,500, whereas DC fast chargers can get between $28,000 and $35,000. The Hawaiian Electric Company also offers time-of-use charging rates for EV owners.

Idaho

An EVSE program in Idaho offers cost-sharing for DC charging stations along the state highways. Idaho Power also provides funding to eligible customers for purchasing and installing EVSE.

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Illinois

The Illinois Electric Cooperative offers its members loans for purchasing new EVs and a time-of-use rate for charging their EVs.

Indiana

The Indianapolis Power and Light Co offer special rates for EV charging and time-of-use options for residential and business customers. Indiana Michigan Power also offers special rates for EV charging for its residential customers.

Iowa

Alliant Energy offers residential customers a $500 rebate for purchasing and installing level 2 chargers. MidAmerican Energy offers $500 rebates to its customers to purchase new EVs and $1,500 rebates to businesses for the purchase and installation of level 2 charging stations. 

Maine

Rebates are provided for the purchase of battery electric vehicles (BEVs) and plug-in hybrid electric vehicles (PHEVs) between $1,500 and $3,000. The VW Environmental Mitigation Trust funds this rebate program. 

Read Electric Vehicle Charging Station Requirements in California

Maryland

The Alternative Fuel Infrastructure Program supports public alternative fuel and charging infrastructure such as DC fast chargers. The program can fund up to $55,000 for a new DC charging station to be set up.

Pepco offers its residential customers a rebate on purchasing level 2 chargers of up to $300. It also offers its customers time-of-use rates for charging their EVs. Delmarva Power also offers rebates to its customers for purchasing level 2 chargers of up to $300.

Baltimore Gas and Electric (BGE) provides residential and multifamily customers rebates to purchase level 2 or DC fast chargers.

Customers with multifamily properties can get 50% coverage of the costs of purchase and installation of the chargers, up to $5,000 per level 2 charger port and $15,000 per DC fast charger port. BGE also offers time-of-use rates for customers for charging their EVs.

Massachusetts

The Massachusetts Electric Vehicle Incentive Program (MassEVIP) provides public grants for fleets and level 2 EVSE. Under the program, grants of $7,500 are given to purchase BEVs and $5,000 to purchase PHEVs. There are also grants for leasing EVs.

Additionally, MassEVIP covers up to 80% of the costs of the purchase and installation of a level 2 charger by a non-residential entity if the charger is accessible to the public for 12 hours every day. It also covers 60% of the cost of level 1 or level 2 chargers installed at multiunit buildings.

The Clean Vehicle Project by the Massachusetts Department of Energy Resources provides public grants to purchase EVs and EVSE. The Drive Green program by Mass Energy offers EV discounts from its participating dealerships.

Read Can I Charge My Electric Car in the Rain?

Michigan

DTE in Michigan offers time-of-use charging rates for customers with EVs and $500 rebates on installing level 2 chargers. The Consumers Energy PowerMIDrive also offers rebates for installing EVSE of up to $400 for level 2 chargers to residential customers, $700 for level 2 chargers, and $70,000 for DC fast chargers commercial customers.  

Minnesota

Minnesota has various time-of-use charging rates and rebates on EVSE offered under different programs such as the Charge Wise program by Lake Region Electric Cooperative, Xcel Energy, Otter Tail Power Company, Dakota Electric, Connexus Energy, and Runestone Electric Association.

Nebraska

The Dollar and Energy Saving Loan Program under the Nebraska Energy Office provides low-cost loans to purchase new EVs and EVSE. A single borrower can borrow a maximum of $500,000 at an interest rate of 5% or less.

Various EV and EVSE rebate programs are also available under the Omaha Public Power District, the Nebraska Public Power District, and the Southern Public Power District.  

New Jersey

The New Jersey Department of Environmental Protection provides reimbursement grants to cover the costs of EVSE installation at multiunit dwellings, workplaces, nonprofit organizations, and other facilities.

The New Jersey Board of Public Utilities offers rebates for residents for purchasing or leasing EVs of up to $5,000.

Read How Much Does It Cost to Install Electric Car Charger

New Mexico

The Alternative Fuel Acquisition Revolving Loan Program by the New Mexico Energy, Minerals, and Natural Resources Department provides loans to state agencies and other institutions to purchase AFVs.

The state of New Mexico will also start working on a grant program to update the grid to install EV charging systems.

New York

Rebates of up to $2,000 are offered by the New York State Energy Research and Development Authority (NYSERDA) for purchasing or leasing new EVs. They also offer rebates of up to $4,000 to purchase and install level 2 chargers at public facilities and workplaces.

Eligible EVs can use the Long Island Expressway HOV lanes. The Public Service Enterprise Group (PSEG) also offers rebate programs to install EVSE like level 2 and DC fast chargers. 

Read How Long Does an Electric Car Battery Hold its Charge?

Oregon

The Clean Vehicle Rebate Program in Oregon provides residents with rebates on purchasing or leasing EVs of up to $2,500. The amount can be increased on a case-by-case basis for lower-income residents.

Central Lincoln and Eugene Water and Electric Board both offer EVSE installation rebates. There is also a time-of-use rate for EV charging offered by Portland General Electric.

Pennsylvania

There are various grant and rebate programs available in Pennsylvania. The Alternative Fuels Incentive Grant Program, the AFV rebate program, and the EVSE funding program by the Volkswagen Environmental Mitigation Trust are all programs that offer financial incentives.

Texas

Texas has several rebate and incentive programs to incentivize residents to use EVs. The Light-Duty Motor Vehicle Purchase/Lease Incentive Program offers rebates of up to $5,000 on the purchase or lease of new EVs.

United Cooperative Services (UCS), Southwestern Electric Power Company, Entergy, and Austin Energy all offer rebates on installing level 2 chargers.

Read How to Charge Your Electric Car On Road-Trip

Utah

In Utah, EVs are exempt from emissions inspection requirements, and those vehicles with a Clean Vehicle Pass can use HOV lanes. The Alternative Fuel Grant Program provides residents with grants of up to $2,500 to convert their gasoline cars to alternative fuels like electricity.

Government entities and other businesses can receive grants covering up to 50% of the costs of installing level 2 or DC fast chargers.

Vermont

In Vermont, you can get financing for EVSE infrastructure through the State Infrastructure Bank. Loans of up to $100,000 with an interest rate of 1% are available for those stations that the general public can access.

Part of the state’s Volkswagen Environmental Mitigation Fund goes to companies and utilities that install EVSE.

Green Mountain Power, Burlington Electric Department, Vermont Public Power Supply Authority, Stowe Electric, and Vermont Electric Co-op all offer rebate programs on the purchase and lease of new EVs, on the installation of EVSE, or both.

Washington

The Washington State Department of Transportation (WSDOT) offers grants that support the development of EVSE projects along highway corridors. EVs and EVSE in Washington are also exempt from sales and use tax.

Those vehicles that are fully powered by electricity also have exemptions for emissions control inspections. Lastly, Pacific Power offers grants to its customers to purchase and install EVSE and cover up to 100% of costs.

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Conclusion

Electric cars are becoming more popular, and many states are starting to offer incentives for people to buy them. New Jersey offers the best deal for electric car buyers, with a $5,000 rebate.

Other states that offer good deals include New York, Oregon, Colorado, California, and Maryland. If you’re thinking of buying an electric car, it’s important to research the incentives available in your state.