Electric Vehicles (EV) have become popular vehicles for new owners. In the United States, federal and state policies create incentives for vehicle owners to switch to alternative fuel options. Electric vehicle buyers receive tax rebates for their purchase and, in some states, do not have to pay registration fees. Electric vehicle owners also may receive priority parking. Carpool lanes are also accessible to EVs, which can be quite beneficial during peak traffic times. Below are some of the incentives you might not expect to find if you decide to drive an electric vehicle.

Federal and State Tax Rebates

The Plug-in Electric Drive Vehicle Credit is the federal tax credit program for buyers of qualified plug-in electric vehicles. The program allows for a tax rebate of up to $7,500 so long as the vehicle model meets the following criteria:

• Must use an external plug-in (plug-in hybrids are eligible)
• Must have a gross weight of up to 14,000 pounds
• Must have been purchased after December 31, 2009
• Must adhere to emission standards set in the Clean Air Act (CAA) or as regulated by the Environmental Protection Agency (EPA) or the state
• Batteries with at least 5 kilowatt hours will be provided $417, with an additional $417 for each excess kilowatt-hour
• The EV manufacturer must not have exceeded 200,000 eligible vehicles sold (Tesla and General Motors no longer qualify for this program, and Toyota, Ford, and Nissan are next in line)
• Only drivers with a tax liability are able to qualify. Credit is not refundable (driver cannot claim money if the credit exceeds tax liability)

For more information on the PEV tax credit, click here.

Tax rebates are also available at the state level. The following are the states with tax credit programs (Click on the link for details on state programs).

• Arizona
• California
• Colorado
• Connecticut
• Delaware
• Georgia
• Illinois
• Maryland
• Massachusetts
• Montana
• New Jersey
• New York
• Oregon
• Pennsylvania
• Rhode Island
• Texas
• Utah
• Washington
• Wisconsin

Charging Station Incentives

All states used to qualify for a federal tax credit of up to $1,000 for installation for owners who bought a JuiceBox home charging station, of owners could purchase for 30% off. This credit program expired on December 31, 2021. However, there are state-specific rebates available. Click here for a list of state incentives and rebates for charging stations.

Reduced Registration Fees

Some states offer reduced fees on registration fees for EV owners. Examples include:

• Connecticut - reduced biennial registration fee of $57
• Illinois- reduced biennial registration fee of $57
• Arizona - reduced vehicle license tax

Rebates and Utility Incentives

Some states offer discounts through reduced bills from utility companies. Examples of rebates include:

• Discounted electricity time-of-use rates
• Rebates for level 2 chargers, DC fast chargers, and commercial chargers
• Monetary incentive to employers who purchase EVs
• Rebates for the purchase of pre-owned EVs

Priority Parking and Discounts

Some cities and municipalities offer free or discounted parking spaces for EVs that also double as charging stations. In large cities, priority parking can be a huge incentive. Examples of priority parking include:

• Aspen - EV users have parking permits that allow them to park for free in residential areas
• Sacramento - special monthly parking rates for EV users in public garages that the city owns
• New Haven - EVs and other alternative fuel vehicles owners can obtain free parking passes
• Boston - parking in municipal-owned charging stations is free

Lane Exemptions

High occupancy vehicle (HOV) lanes or carpool lanes are accessible to electric vehicles and hybrid types in some states. Below is a summary of lane exemption incentives and their methods of identification:

• Arizona (License Plate)
• California (Decal)
• Colorado (Decal and Toll Transponder)
• Florida (Annual Decal)
• Georgia (License plate)
• Hawaii (License Plate)
• Maryland (Decal)
• New Jersey (None)
• New York (10% Discount - Sticker and Toll Transponder Registration)
• North Carolina (None)
• Tennessee (Decal)
• Utah (Decal or Plate)
• Virginia (License Plate)

Research Incentives Today to See if an EV is Right for You

EV owners have a multitude of federal and state incentives they can partake in. As EVs continue to become more common, it remains to be seen whether these incentives will also increase as well. Research today what incentives are available in your state and determine if an EV now is right for you.