As an integral part of our commitment to keep you updated on matters that could affect your financial decisions, we want to inform you of recent changes and available incentives on electric vehicles at both the federal and state levels.
While lawmakers extended the federal tax credit for personal-use electric vehicles through 2032, they restricted it to vehicles that comply with domestic battery sourcing rules. The battery rules limit the number of electric vehicles that qualify for the full $7,500 federal tax credit.
Despite this, there’s encouraging news as most states offer additional incentives to residents who switch to electric vehicles.
The incentives vary widely and may include reduced vehicle licensing fees or sales taxes, HOV lane privileges, reduced or waived vehicle inspections, and financial incentives for purchasing home chargers. Moreover, many states’ local electric utilities provide rebates to customers who buy electric vehicles, ranging from $100 to $1,500 or more.
Currently, eight states—California, Colorado, Connecticut, Maine, Maryland, Massachusetts, New York, and Pennsylvania—are leading the electrification efforts by offering their own financial incentives to residents who purchase or lease electric vehicles.
The incentives are usually in the form of rebates, typically ranging from $1,000 to $2,000, but can be as much as $7,500 for lower-income residents in some states. Unlike the federal tax credit, state rebates are not subject to strict domestic sourcing restrictions.
But it’s important to note that each state’s electric vehicle rebate program is unique and often requires residency in the state for two or three years after your EV purchase or lease. States may also impose income caps and price restrictions on qualifying electric vehicles. Therefore, we strongly encourage you to carefully review your state’s program before purchasing an electric vehicle.
If you are considering an electric vehicle, the rebates and tax credits can help reduce your cost.
If you want my help with an electric vehicle purchase or have questions about your electric vehicle rebate and credit please make sure to contact us.