EV Charging Station Incentives By State

As the push for EV adoption continues, the federal and state governments are stepping up to offer various financial incentives to make the transition to all-electric transportation more accessible and attractive. With the signing of the Inflation Reduction Act, federal EV tax credits have been extended for another 10 years, offering big financial incentives for consumers to invest in electric mobility. But state credits and rebates can vary greatly so let’s take a closer look.

Federal Tax Credits for Electric Vehicles

At the federal level, consumers can benefit from substantial tax credits for purchasing electric vehicles and installing electric vehicle charging stations. Here’s how the federal tax credit system works:

• Clean Vehicle Credit: This tax credit allows for a maximum deduction of up to $7,500 for the purchase of new qualified electric vehicles. The amount you qualify for depends on factors such as the vehicle's battery capacity and other eligibility requirements.
• Home Charging Station Tax Credit: Homeowners can claim up to $1,000 for the purchase and installation of a home electric vehicle supply equipment (EVSE). This incentive can significantly offset home EV charger installation costs.

State Tax Credits and Incentives

While the federal government provides a solid framework for EV incentives, state programs vary widely in their offerings. Many states have established additional credits, rebates, and programs aimed at encouraging the adoption of electric vehicles and supporting charging infrastructure. These incentives can take many forms, including:

• State Tax Credits: Available in some regions and can enhance the federal credit, providing additional savings on the purchase of electric vehicles. These credits can help lower the overall cost of buying an EV.

• Rebates: Many states provide direct rebates that can reduce the upfront costs of purchasing an electric vehicle or installing a charging station. For example, programs might offer cash back after a purchase is made.

• Grants and Funding Programs: Some states have established grants to support businesses and public entities in the installation of EV charging stations, helping to build out the necessary infrastructure.

• Utility Incentives: Various utility companies offer incentives for residential customers to install EV charging stations, including rebates and reduced electricity rates for EV charging during off-peak hours.

State-by-State EV Tax Credits

Alabama

• Alabama Power has a special time-of-use rate for EV and plug-in hybrid owners.

Alaska

• Chugach Electric Association: $200 credit on your bill for each residential charger (up to 2).
• Alaska Power and Telephone: $500 rebate for new/used EVs with at least 14-kW battery.
• Alaska Electric Light & Power: discounted rates for residential EV owners with at least 16-kW battery.

Arizona

• EVs can use the HOV lane regardless of passenger count with an AFV plate.
• Arizona Public Service Company (APS): time-of-use rate and up to $25 enrollment credit for Smart Charge Program.
• Salt River Project (SRP): $250 rebate for Level 2 charger purchase, plus various off-peak charging incentives.
• Tucson Electric Power (TEP): $500 rebate for installing a Level 2 EV charging station.

Arkansas

• Southwestern Electric Power Company: $250 rebate for an ENERGY STAR-certified Level 2 charger.
• Carroll Electric Cooperative: $30/month credit for charging EVs, $250 rebate for new Level 2 charger.

California

California has many incentives for EV purchases, especially for low-income residents which can total over $30,000 when combining federal and state rebates. Here are a few:

• Clean Vehicle Rebate Project (CVRP): Previously offered rebates up to $7,500 but is currently closed to new applications.
• Clean Cars for All (CC4A): Incentives for low-income consumers to replace older vehicles with cleaner options.
• California Air Resources Board: $7,500 for electric vehicles, $2,000 for charging installations.

Local programs:

• Alameda Municipal Power: $4,000 for used EVs under $40,000, $500 for Level 2 charger.
• Los Angeles Department of Water and Power (LADWP): $1,500 for qualifying used EVs; low-income customers can get a maximum credit of up to $4,000.
• Pacific Gas and Electric (PG&E): $500 rebate for Level 2 charger, $4,000 for low-income customers buying used EVs.
• Southern California Edison: $4,000 rebate for used EVs from eligible vehicles.

California also allows EV drivers to use the HOV carpool lane regardless of passenger count with a “Clean Air Vehicle” sticker from the DMV.

Colorado

• Tax Credits: Residents who buy or lease an electric vehicle (EV) or a light-duty electric truck are eligible for a tax credit of up to $5,000.
• Medium-duty and heavy-duty electric trucks can qualify for credits up to $12,000.
• Vehicle Exchange Colorado Program: Up to $6,000 towards buying a new EV or plug-in hybrid electric vehicle (PHEV) when trading in an older gas-powered car, or $4,000 for used models. Income and purchase price limits apply.
• Black Hills Energy: Residential customers can get a $500 rebate for purchasing and installing a new Level 2 EV charging station. Low-income residents may also be eligible for an additional $1,300.
• Gunnison County Electric Association: Members can borrow an EV for a test drive for up to 7 days at no cost and with no mileage restrictions. Residential customers installing a Level 2 EV charging station can get rebates up to $1,250 when signing up for time-of-use rates. Used electric car buyers can get 25% off the purchase price, up to $1,000.
• Holy Cross Energy: Up to $549 reimbursement for EV owners who install EV chargers (Level 2) through the Holy Cross EV Charger Distribution Flexibility Tariff. Members with 2 EVs can qualify for 2 charger rebates.

Connecticut

• CHEAPR Program: The Connecticut Hydrogen and Electric Automobile Purchase Rebate Program (CHEAPR) offers a point-of-sale rebate for the “incremental cost” of buying or leasing an electric vehicle (EV), plug-in hybrid electric vehicle (PHEV), or hydrogen fuel cell electric vehicle (FCEV).
• Rebate Breakdown:
  • EVs:
    • Standard Rebate: $2,250
    • Rebate Plus – New Vehicles: $2,000
    • Rebate Plus – Used Vehicles: $3,000
  • PHEVs:
    • Standard Rebate: $750
    • Rebate Plus – New Vehicles: $1,500
    • Rebate Plus – Used Vehicles: $1,125
  • FCEVs:
    • Standard Rebate: $7,500
    • Rebate Plus – New Vehicles: $2,000
    • Rebate Plus – Used Vehicles: $7,500
• Eversource: Eversource offers residential customers $500 for purchasing and installing a qualifying Level 2 EV charging station.
• Norwich Public Utilities: Rebates for buying or leasing a new or used EV, plus an additional incentive for installing a qualified residential EV charging station up to $1,000:
  • New PHEV: $1,000
  • New electric car: $1,500
  • Used PHEV: $500 (for used 2019 or newer plug-in hybrid)
  • Used electric car: $1,000 (for 2019 or newer EV)
• United Illuminating: $1,000 rebate for residential customers for purchasing and installing a Level 2 EV charging station at home, plus $100 when setting up a charging schedule and enrolling in their charging program.

Delaware

• Delaware Clean Transportation Incentive Program: Rebate up to $2,500 (based on MSRP) for buying or leasing a new electric vehicle. Plug-in hybrid electric vehicles are eligible for up to $1,000 rebate.
• Utility Programs: Vehicles purchased on or after May 1, 2023, can be purchased directly through participating dealerships. Delmarva Power has a special time-of-use rate for residential customers who own an EV. Delaware Electric Cooperative offers a $100 bill credit rebate and a $5 monthly bill credit for customers who don’t charge during peak hours.

District of Columbia

• Tax Credits: 50% of the cost of a residential charging station, up to $1,000.
• Additional Incentives: Additional incentives for other alternative fuel vehicles up to $19,000 per vehicle. Some electric cars are exempt from the excise tax on the original title certificate and EVs are eligible for reduced registration fees. Contact the Department of Motor Vehicles for a full list of eligible EVs.

Florida

• Duke Energy: $10 monthly credit for residential customers who charge their EV with a Level 2 charging station off-peak.
• Jacksonville Electric Authority: Up to $300 rebate when customers upgrade their home electrical system to support an EV charging station. Enrolled customers get a $7 monthly credit per EV for charging off-peak.
• Kissimmee Utility Authority: $100 rebate for EV buyers and another of the same amount for those who install a Level 2 charger at home.
• Orlando Utilities Commission: $200 rebate for residential customers who buy or lease a new electric vehicle. Take an electric car test drive and get a $50 rebate.

Georgia

• Cobb EMC: $250 incentive for eligible members after purchasing and installing an ENERGY STAR-certified Level 2 EV charging station. Members must be single-family homeowners and enrolled in the electric membership cooperative’s energy efficiency program. Certain rate plans provide up to 400 kWh of free energy when charging EVs overnight.
• Georgia Power: Time-of-use rate for Georgia residents who own and charge an EV at home. To qualify you must own a smart charger that can meter the charger usage separately. Also, up to $200 rebate for buying and installing a Level 2 EV charger.

Hawaii

• Hawaiian Electric Company: Lower rate for customers charging at specific times of day for Oahu, Molokai, Maui, and Hawaii Island customers.
• Smart Charge Hawaii: Discounts for Hawaiian Electric customers who buy a smart charging station and a $150 incentive for connecting an eligible EV to the platform.

Idaho

• State Exemptions: Electric vehicles, hybrid electric vehicles and plug-in hybrid electric vehicles are exempt from state required maintenance programs and motor vehicle inspections.

Illinois

• EV Purchase Rebate: Up to $4,000 for new or used electric vehicles purchased between July 1, 2022 and June 30, 2026; $2,000 between July 1, 2026 and June 30, 2027; and $1,000 thereafter.
• Electric Motorcycle Rebate: $1,500 for new electric motorcycles purchased after July 1, 2022.
• Utility Incentive: Ameren Illinois time-of-use rate for residential EV owners.

Indiana

• Indiana Michigan Power: $500 rebate for signing up for off-peak EV charging.
• Applied Energy Services: $250 rebate for Level 2 charger purchase plus $50 per year for managed charging.
• Duke Energy: Up to $200 per year for charging off-peak.

Iowa

• IAEC Rebates: For residents who buy/install qualifying Level 2 charging stations.

Kansas

• Tax Credits: Up to $2,400 for qualified electric vehicles from the Kansas Department of Revenue.
• Evergy: Up to $500 for home charging stations.

Kentucky

• No State Rebates: No current incentives for EV purchases or leases.

Louisiana

• Entergy/eTech: $250 rebate for Level 2 charger installation; $100 for time-of-use discount program.
• SWEPCO: $250 rebate for ENERGY STAR-certified Level 2 chargers.

Maine

• EV Purchase Rebate: Rebates range up to $2,000 for new EVs; and $1,000 for plug-in hybrids. Up to $7,500 for new EVs.
• Time-of-Use Program: $50 per year for off-peak charging.

Maryland

• Excise Tax Credit: Up to $3,000 for EVs purchased after July 1, 2023.
• EV Charging Station Rebate: Up to $700 for qualified charging stations.

Massachusetts

• EV Purchase Rebate: Up to $3,500 for electric vehicles; $1,500 for income-qualifying owners.
• Charging Station Rebate: Up to $700 for Level 2 charging station.

Michigan

• Consumers Energy: $500 rebate for Level 2 charger at home; $10 per night for overnight charging.
• DTE Energy: $500 for EV purchases/charging infrastructure costs.

Minnesota

• E-ZPass Credit: Up to $250 for new EVs and PHEVs in toll lanes.
• Department of Commerce: Up to $2,500 for new EVs or PHEVs; $600 for used.

Mississippi

• EV Purchase: $1,250 rebate for new EV; $1,000 for lease.
• Used EVs: $750 for used EVs over $10,000.
• Plug-in Hybrid Vehicles (PHEVs): $750 for new PHEVs; $500 for lease; $500 for used PHEVs.
• Level 2 Charger Installation: $250.

Missouri

• Evergy: $500 for Level 2 charging station; time-of-use rate.
• Kirkwood Electric: $300 for Level 2 charging station (one per year).

Montana

• No state or local rebates/incentives for EVs or leases.

Nebraska

• NPPD & SPPD: $500 for Level 2 charging station; $400 for pre-wiring.

Nevada

• NV Energy: time-of-use rate for residential EV owners.

New Hampshire

• NHEC: $300 charger incentive for up to two installations; discounted off-peak rate.

New Jersey

• Sales Tax Exemption: For new and leased zero-emission vehicles.
• Charge Up New Jersey Program: Up to $4,000 for EVs; $250 for Level 2 chargers.
• PSE&G: $1,500 bill credit for upgrading assets for Level 2 charger.
• Atlantic City Electric: $1,000 for Level 2 charger.

New Mexico

• Powering New Mexico: $500 for Level 2 charging stations; up to $1,500 for installation assistance.
• Xcel Energy: $500 for dedicated electrical circuits for Level 2 chargers.

New York

• NYSERDA: $2,000 point-of-sale rebate for new EVs.
• Central Hudson Gas & Electric: off-peak rate for EV charging.
• ConEdison: $25 for EVs or charging stations; $35 for summer off-peak charging.
• Public Workplace Charging Equipment Costs: New York State offers businesses and employers income tax credit of up to $5,000 for purchasing and installing EV charging stations through 2025.

North Carolina

• Various Co-ops: time-of-use rates; $50-$500 for Level 2 chargers.

North Dakota

• No state or local rebates/incentives for EVs or leases.

Ohio

• Firelands Electric Cooperative: $250 for Level 2 charger.

Oklahoma

• Oklahoma Electric Cooperative: $300 for EVs and off-peak charging.

Oregon

• Charge Ahead Rebate Program: Closed; previously $7,500 for new EVs.
• Clean Vehicle Rebate Program: Waitlist; previously $2,500.

Pennsylvania

• Department of Environmental Protection: $2,000 for alternative fuel vehicles.
• PECO: $50 for EVs.

Rhode Island

• DRIVE EV Program: $1,500 for new EVs; $1,000 for used EVs or PHEVs.

South Carolina

• Santee Cooper: $250 for Level 2 charging station.

South Dakota

• Black Hills Energy: $500 for approved EV chargers.

Tennessee

• Chattanooga Electric Power Board: $50 for Level 2 charger.

Texas

• CPS Energy: $250 for Level 2 charger; additional for off-peak charging.
• Denton Municipal Electric: $1,500 for EV and off-peak charging.

Utah

• Rocky Mountain Power: $200 for Level 2 charger.

Vermont

• Drive Electric Vermont: $5,000 for used high-efficiency vehicles; $4,000 for new vehicles.

West Virginia

• Appalachian Power: $500 for purchase and installation of ENERGY STAR-certified Level 2 charging station through Charge Forward program; time-of-use rate for residents with separately metered EV charging stations.

Wisconsin

• Chippewa Valley Electric Cooperative: $400 for residential Level 2 charger.
• Clark Electric Cooperative: $800 for Level 2 or smart charging station with meter.
• East Central Energy: $500 for Level 2 charger on time-of-use rate or off-peak.
• Madison Gas and Electric: time-of-use rate for EV owners; free installation of EV charger at home for about $20/month.
• Pierce Pepin Cooperative Services: $800 for residential Level 2 EV charging station.
• Price Electric Cooperative: $500 for Level 2 EV charging station.
• Riverland Energy Cooperative: customers can purchase certain Level 2 charging stations and get up to $800 rebate.

Wyoming

• Black Hills Energy: Offers a $500 rebate to residential customers who purchase and install a Level 2 charging station.

EV Charging Rebates

Who Qualifies for the Electric Car Credit

1. Income Eligible Customers
   • New EVs:
     • Single and married filing separately: $150,000
     • Head of household: $225,000
     • Married filing jointly: $300,000
   • Used EVs:
     • Single and married filing separately: $75,000
     • Head of household: $112,500
     • Married filing jointly: $150,000
   • Flexibility: You can use your Modified Adjusted Gross Income (MAGI) from the year of vehicle delivery or the previous year. So even if your income exceeds the limit in one year, you can still qualify.
2. Price Caps
   • New EVs:
     • Vans, SUVs, and pickup trucks: $80,000 or less
     • Sedans and passenger cars: $55,000 or less
   • Used vehicles: $25,000 or less

Battery Component Regulations

1. North American Assembly and Manufacturing Percentages:
   • To get up to $3,750 of the federal tax credit, a percentage of the vehicle’s battery must be assembled or produced in North America. These percentages increase over time:
     • 2023: 50%
     • 2024: 60%
     • 2025: 60%
     • 2026: 70%
     • 2027: 80%
     • 2028: 90%
     • 2029-2032: 100%
2. Critical Minerals Requirement:
   • The other $3,750 of the credit is dependent on a portion of the critical minerals used in the battery coming from the U.S. or a trade agreement country. The requirements are:
     • 2023: 40%
     • 2024: 50%
     • 2025: 60%
     • 2026: 70%
     • 2027-2032: 80%
3. Final Assembly Location:
   • All vehicles must be assembled in North America to qualify for tax credits.

Eligible Vehicles

As of July 2024, the following electric and plug-in hybrid vehicles qualify:

• Acura ZDX (2024): $7,500 credit, $80,000 MSRP
• Cadillac LYRIQ (2024): $7,500 credit, $80,000 MSRP
• Tesla Model 3 Long Range AWD (2024): $7,500 credit, $55,000 MSRP

For the most up-to-date list of eligible vehicles, check the IRS website or FuelEconomy.gov.

Charging Equipment and Compatibility

• Level 1 EV Chargers: Standard home chargers, 24 hours for a full charge.
• Level 2 EV Chargers: 240-volt outlet, 4-8 hours to charge.

Most EVs in North America use SAE J1772 chargers for Level 1 and Level 2 charging, and for vehicles that need compatibility, check out our EV charger adapters.

Extra Perks for Wi-Fi-enabled EV Chargers

Some public and private entities also offer a special incentive for households that will install Wi-Fi EV chargers. For instance, Silicon Valley Power in Santa Clara offers residential customers a $550 rebate for installing Level 2 EV chargers with Wi-Fi capabilities. Similarly, Pasadena Water & Power customers can receive a $600 rebate for installing qualified Wi-Fi-enabled Level 2 EV chargers. If you want to take advantage of this perk, check your local utility programs and make sure to purchase a qualified Wi-Fi-ready EV charger like the Lectron V-Box Pro NACS Home Charger.

Business Vehicle Credits

• Light Vehicles: $7,500
• Larger Vehicles: $40,000

Commercial credit has fewer restrictions than consumer credit and is mainly based on income tax credit and on the vehicle being used for business purposes.

How to Claim the Credit

1. Form Submission: Use Form 8936 with your federal income tax return.
   • The credit is nonrefundable, meaning it can reduce your tax liability but not result in a refund.
   • Claim for the tax year the vehicle is delivered.
2. Transferring the Credit:
   • Can transfer the credit to the dealer for an immediate price reduction, but must report this on your tax return.
3. Required Documentation: Make sure you have a report from the seller with the following information (seller and buyer info, sale date, VIN etc.).

 

• How do I find out what EV charging incentives are available in my state?

  State energy offices, utility company websites and the Department of Energy’s Alternative Fuels Data Center have all the information on EV charging station incentives.