Article Date:
June 2023

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State Tax Benefits and Rebates for Electric Vehicles

The federal tax credit for personal-use electric vehicles has been extended through 2032, but it’s limited to electric vehicles that comply with strict domestic sourcing rules for batteries.


When the IRS fully implements the federal rules, there may be relatively few electric vehicles that qualify for the full $7,500 federal tax credit. For the vehicles that qualify for the federal credit now, see Tax Credits for Electric Vehicles: The Latest from the IRS.


Here’s good news: the federal electric vehicle tax credit is not the only game in town.


Most states offer incentives of their own to residents who make the switch from gas guzzlers to electric vehicles. These incentives vary from state to state.


The incentives may include reduced vehicle licensing fees or sales taxes, the right to drive in state HOV lanes without any passengers, reduced or no vehicle inspections, and financial incentives for purchasing home chargers.


In many states, local electric utilities offer rebates to customers who purchase electric vehicles; these vary from as little as $100 to $1,500 or more.


In addition, eight states have really stepped up to the electrification plate by offering their own statewide financial incentives to residents who purchase or ... Log in to view full article.

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