- What are electric vehicle incentives?
- Do all electric vehicles qualify for the same incentives?
- Electric vehicle incentives by state
- States with the best electric vehicle incentives
- States with no government electric vehicle incentives
- How to apply for a federal electric vehicle subsidy
- How to maximize your EV savings
- FAQ: Electric vehicle incentives
What are electric vehicle incentives?
Electric vehicle incentives offered to owners include:
- Rebates
- Tax credits
- Discounts
- Exemptions from inspections
Many states offer incentives to encourage people to purchase fuel-efficient, low-emission vehicles. Some incentives are designed to help people defray the costs of installing charging stations at their homes.
The California Clean Cars 4All program is among the best for incentives. It encourages people to trade in their older, high-emissions cars for electric vehicles in return for up to $7,500. The exact amount depends on your financial situation and the car you buy, but the savings can be substantial.
Other states, such as Texas and Utah, permit you to skip the state emissions inspections if you own an electric vehicle. The monetary savings aren’t as significant, but it’s a convenience.
Do all electric vehicles qualify for the same incentives?
No, not all electric vehicles qualify for the same incentives, nor do all owners. It depends on several factors:
- The type of vehicle. If you have an all-electric vehicle, a plug-in hybrid or a fuel cell vehicle, you will qualify. Check your state’s website to see if your specific vehicle qualifies.
- Your income. In some states, income requirements must be met.
- The cost and the age of your vehicle. Some states cap rebates or credits based on the purchase price of the vehicle and other states only offer these incentives for new cars.
Electric vehicle incentives by state
California leads the way with the best incentives, including rebates on new purchases and a program for low-income drivers to get as much as $13,000 in incentives for trading in a gas vehicle for a low or no-emissions option.
Washington also has one of the best programs, offering up to $9,000 for qualifying EV purchases. Oregon offers up to $7,500 in rebates if you are eligible.
Other states offer smaller rebates, reduced excise taxes and free state emissions inspections. Alabama, Florida, and many other states provide no incentives on the state level.
Compare rebates and other incentives by state below.
| State | Electric vehicle incentive | Source |
|---|---|---|
| Alabama | None | https://afdc.energy.gov/laws/12997 |
| Alaska | None | https://afdc.energy.gov/laws/12880 |
| Arizona | None | |
| Arkansas | None | |
| California | Rebates of up to $7,000 on a new vehicle and a partial sales and use tax exemption. A program that offers low-income drivers up to $11,000 for swapping a gas vehicle for an electric or hybrid, as well as charging cost incentives | Vehicles — Tax Guide for Green Technology DCAP Incentives and EligibilityClean Cars 4 All | California Air Resources Board |
| Colorado | Coloradans can get up to $3,500 in tax credits for EVs costing up to $80,000 and $2,500 for vehicles costing up to $35,000. | Electric Vehicle Tax Credits | Colorado Energy Office |
| Connecticut | Vehicles powered exclusively by electricity are exempt from state motor vehicle emissions inspections. Up to $7,500 tax rebate through the CHEAPR program. | https://afdc.energy.gov/laws/11583 CHEAPR - Home |
| Delaware | Rebates for the purchase or lease of an EV or PHEV. EVs: rebate of up to $2,500PHEVs: rebate of up to $1,000. Individuals may receive a maximum of two rebates. | https://afdc.energy.gov/laws/11638 The Delaware Clean Vehicle Rebate Program - DNREC |
| Washington, D.C. | Qualified EVs are exempt from the excise tax imposed on an original certificate of title. The original purchaser and subsequent purchasers of the same vehicle are eligible for the excise tax exemption. New EVs are eligible for a reduced vehicle registration fee of $36 for their first two years of registration. | https://afdc.energy.gov/laws/5979https://afdc.energy.gov/laws/6601 Electric Vehicles Resources | doee |
| Florida | None | |
| Georgia | None | |
| Hawaii | None | |
| Idaho | Exempt from vehicle inspections and maintenance programs | https://afdc.energy.gov/laws/9292 |
| Illinois | Rebates for the purchase of a new or pre-owned EV are available according to the following schedule: Purchase Timeframe Rebate AmountJuly 1, 2022 – June 30, 2026 $4,000July 1, 2026 – June 30, 2027 $2,000Beginning July 1, 2028 $1,500 Up to $1,500 rebate for the purchase of an electric motorcycle. | https://afdc.energy.gov/laws/12905 Electric Vehicle Rebate Program - Climate and Equitable Jobs Act |
| Indiana | None | |
| Iowa | None | |
| Kansas | Alternative fuel tax credit, up to $3,000 per qualified vehicle or $5,000 per heavy-duty vehicle | Kansas Department of Revenue Tax Policy - Alternative-fuel Tax Credit |
| Kentucky | None | |
| Louisiana | None | |
| Maine | Up to $7,500 on qualified vehicles when paired with an off-peak charger | EV and EV Charger Incentives - Efficiency Maine |
| Maryland | Vehicles powered exclusively by electricity are exempt from state emissions inspections. Beginning July 1, 2023, qualified EV and FCEV purchasers may apply for an excise tax credit of up to $3,000. | https://afdc.energy.gov/laws/12411https://afdc.energy.gov/laws/8381 Maryland EV | Incentives, Charging & Resources for Electric Vehicles in Maryland |
| Massachusetts | Rebates of up to $3,500 for the purchase or lease of eligible new ZEVs. Vehicles powered exclusively by electricity are exempt from state motor vehicle emissions inspections. | https://afdc.energy.gov/laws/11345https://afdc.energy.gov/laws/13361https://afdc.energy.gov/laws/11585 Home page | MOR-EV.org |
| Michigan | None | |
| Minnesota | Rebates of up to $2,500 for new and $600 for pre-owned vehicles. Eligible EVs may not have a pre-tax purchase price above $55,000 for new vehicles or $25,000 for pre-owned vehicles. | https://afdc.energy.gov/laws/13285 Electric Vehicle Rebates / Minnesota Department of Commerce - Energy |
| Mississippi | None | |
| Missouri | None | |
| Montana | None | |
| Nebraska | None | |
| Nevada | None | |
| New Hampshire | None | |
| New Jersey | Rebate of up to $4,250Partial tax exemption | https://afdc.energy.gov/laws/5778 Home | Charge Up New Jersey |
| New Mexico | None | |
| New York | Rebates of up to $2,000 for purchasing or leasing a new eligible EV. Rebate amounts vary based on a vehicle’s all-electric range and manufacturer’s suggested retail price | https://afdc.energy.gov/laws/11689 Drive Clean Rebate for Electric Cars Program - NYSERDA |
| North Carolina | None | |
| North Dakota | None | |
| Ohio | None | |
| Oklahoma | Maximum credit of $5,500 for vehicles under 6,000 lbs | Alternative Fuels Data Center: Oklahoma Laws and Incentives |
| Oregon | Rebates of up to $7,500 when combined; income eligibility requirements must be met | https://afdc.energy.gov/laws/12630 Incentives & Rebates — Go Electric Oregon |
| Pennsylvania | Up to $4,000 rebate, depending on your income level and other factors | Alternative Fuel Vehicle Rebates for Consumers | Department of Environmental Protection | Commonwealth of Pennsylvania |
| Rhode Island | Up to $1,500, depending on the type of vehicle | drive.ri.gov/drive-ev-project |
| South Carolina | None | |
| South Dakota | None | |
| Tennessee | None | |
| Texas | Vehicles powered exclusively by electricity are exempt from state motor vehicle emissions inspections. | https://afdc.energy.gov/laws/13292 |
| Utah | Vehicles powered exclusively by electricity are exempt from state motor vehicle emissions inspections. | https://afdc.energy.gov/laws/12392 |
| Vermont | Incentives of up to $5,000, depending on income and vehicle type | https://afdc.energy.gov/laws/12230 Key Considerations for Buying a Used EV - Drive Electric Vermont |
| Virginia | Electric vehicles are exempt from vehicle emissions inspections | Alternative Fuels Data Center: Virginia Laws and Incentives |
| Washington | Up to $9,000 can be rebated on new EVs and up to $2,500 can be rebated on pre-owned EVs. | https://afdc.energy.gov/laws/13535https://afdc.energy.gov/laws/13535 Save money with rebate and incentive programs | Climate |
| West Virginia | None | |
| Wisconsin | None | |
| Wyoming | None |
States with the best electric vehicle incentives
The following states have some of the best electric vehicle incentives. In addition to these incentives, local utilities may also offer rebates.
California
California offers an extensive range of incentives for buying an electric vehicle, including:
- Rebates of up to $7,000 on the purchase or lease of a new electric or hybrid vehicle
- A partial exemption on sales and use tax
- The Clean Cars 4 All program provides rebates of up to $12,000 for people who meet income requirements and trade in a gas vehicle to purchase a low or zero-emissions vehicle, along with up to $2,000 for charging equipment or a pre-loaded charging card
Washington
The Washington EV Instant Rebate Program offers:
- Up to $9,000 for new EVs
- Up to $2,500 for pre-owned EVs
Incentives are available on both financed and leased vehicles.
Oregon
Oregon residents can combine incentives to get up to $7,500 back, including:
- The Clean Vehicle Rebate
- Charge Ahead Rebate Program (up to $5,000)
Both are available to low and medium-income residents.
Connecticut
Connecticut residents can enjoy these incentives:
- Up to $7.500 in rebates on new or used EVs
- Exemption from state emissions inspections
Income requirements apply.
Massachusetts
Massachusetts residents can get incentives, including:
- Rebates of up to $3,500 for the purchase or lease of EVs
- Exemption from state emissions inspections
No income requirements exist for these incentives, and they’re available to individuals and businesses.
States with no government electric vehicle incentives
The following states have no government incentives for purchasing electric or hybrid vehicles. Drivers in these states can still apply for federal subsidies, and many do have incentives offered by utility companies.
- Alabama
- Alaska
- Arizona
- Arkansas
- Florida
- Georgia
- Hawaii
- Indiana
- Iowa
- Kentucky
- Louisiana
- Michigan
- Mississippi
- Missouri
- Montana
- Nebraska
- Nevada
- New Hampshire
- New Mexico
- North Carolina
- North Dakota
- Ohio
- South Carolina
- South Dakota
- Tennessee
- West Virginia
- Wisconsin
- Wyoming
How to apply for a federal electric vehicle subsidy
To apply for the federal electric vehicle subsidy, follow these steps:
- Understand federal tax credits: Recent legislation ends electric vehicle tax rebates as of September 30, 2025. That means only vehicles purchased before and up to that date qualify. Ensure your vehicle qualifies, and that your income does as well.
- Check vehicle eligibility: To qualify, you must have purchased an electric vehicle or a plug-in hybrid, and the final assembly of the vehicle must have been in North America. Also, the battery materials have criteria for where they’re sourced.
- Verify your eligibility: There are also income limits to claiming the federal tax credit. This is based on your Adjusted Gross Income.
- $300,000 for married couples filing jointly or a surviving spouse
- $225,000 for heads of households
- $150,000 for all other filers
- Purchasing the vehicle and obtaining the Time-of-Sale Report: You can get this from the dealer. It will confirm exactly when the car was purchased. The dealer will also submit a copy to the IRS.
- Claiming the credit (filing Form 8936): You will need this form to submit with your taxes. You can find it on IRS.gov under forms. There are also instructions available.
All the details can be found on the IRS website.
How to maximize your EV savings
To maximize your EV savings:
- Ask your insurance company about all available discounts
- Check with your state to find out what government incentives are available
- Check with local utility companies (generally power companies) to see if they offer rebates
- Apply for federal subsidies if you qualify
Sources:
- Alternative Fuels Data Center: “Alternative Fuels Data Center: Search Federal and State Laws and Incentives.” Accessed October 2025
- IRS. “Credits for new clean vehicles purchased in 2023 or after | Internal Revenue Service.” Accessed October 2025
- U.S. Department of Energy. “Tax Incentives.” Accessed October 2025
FAQ: Electric vehicle incentives
Are there other incentives to buy electric cars?
Insurance companies frequently offer discounts for electric and hybrid vehicles. Make sure to ask.
Does California offer a tax credit for electric cars?
California offers a sales tax exemption for electric vehicles through the Clean Cars 4All Program.





