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.

StateElectric vehicle incentiveSource
AlabamaNonehttps://afdc.energy.gov/laws/12997
AlaskaNonehttps://afdc.energy.gov/laws/12880
ArizonaNone
ArkansasNone
CaliforniaRebates 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
ConnecticutVehicles 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
DelawareRebates 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
FloridaNone
Georgia None
HawaiiNone
IdahoExempt from vehicle inspections and maintenance programshttps://afdc.energy.gov/laws/9292
IllinoisRebates 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
IndianaNone
IowaNone
KansasAlternative fuel tax credit, up to $3,000 per qualified vehicle or $5,000 per heavy-duty vehicleKansas Department of Revenue Tax Policy - Alternative-fuel Tax Credit
KentuckyNone
LouisianaNone
MaineUp to $7,500 on qualified vehicles when paired with an off-peak chargerEV and EV Charger Incentives - Efficiency Maine
MarylandVehicles 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
MassachusettsRebates 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
MichiganNone
MinnesotaRebates 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
MissouriNone
MontanaNone
NebraskaNone
NevadaNone
New HampshireNone
New Jersey

Rebate of up to $4,250Partial tax exemption
https://afdc.energy.gov/laws/5778
Home | Charge Up New Jersey
New MexicoNone
New YorkRebates 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 pricehttps://afdc.energy.gov/laws/11689
Drive Clean Rebate for Electric Cars Program - NYSERDA
North CarolinaNone
North DakotaNone
OhioNone
OklahomaMaximum credit of $5,500 for vehicles under 6,000 lbsAlternative Fuels Data Center: Oklahoma Laws and Incentives
OregonRebates of up to $7,500 when combined; income eligibility requirements must be methttps://afdc.energy.gov/laws/12630
Incentives & Rebates — Go Electric Oregon
PennsylvaniaUp 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 IslandUp to $1,500, depending on the type of vehicledrive.ri.gov/drive-ev-project
South CarolinaNone
South DakotaNone
TennesseeNone
TexasVehicles powered exclusively by electricity are exempt from state motor vehicle emissions inspections.https://afdc.energy.gov/laws/13292
UtahVehicles powered exclusively by electricity are exempt from state motor vehicle emissions inspections.https://afdc.energy.gov/laws/12392
VermontIncentives of up to $5,000, depending on income and vehicle typehttps://afdc.energy.gov/laws/12230
Key Considerations for Buying a Used EV - Drive Electric Vermont
VirginiaElectric vehicles are exempt from vehicle emissions inspectionsAlternative Fuels Data Center: Virginia Laws and Incentives
WashingtonUp 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 VirginiaNone
WisconsinNone
WyomingNone

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:

  1. 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.
  2. 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.
  3. 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
  1. 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.
  2. 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:

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.