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Electric car incentives by state 2022

Almost every state offers a tax credit, rebate, or other financial incentive for buying an electric vehicle. The only states not currently offering any specific benefit are Kentucky, Montana, North Dakota, and Wyoming.

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By

Rachael Brennan

Rachael Brennan

Senior Editor & Licensed Auto Insurance Expert

Rachael Brennan is a senior editor and a licensed auto insurance expert at Policygenius. Her work has also been featured in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and AutoInsurance.com.

Edited byAnna Swartz

Anna Swartz

Senior Managing Editor & Auto Insurance Expert

Anna Swartz is a senior managing editor and auto insurance expert at Policygenius, where she oversees our car insurance coverage. Previously, she was a senior staff writer at Mic.com, as well as an associate writer at The Dodo.

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In an attempt to make switching to electric vehicles (EVs) more affordable, most states offer rebates, credits, and tax deductions to help aspiring EV owners save money. 

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In some states, these benefits also apply to other alternative fuel vehicles, like plug-in hybrid electric vehicles (PHEV), fuel-cell electric vehicles, and electric motorcycles. And no matter where they live, drivers can also save money by comparing quotes from multiple insurance companies when shopping for car insurance for their EV.

Key takeaways

  • Kentucky, Montana, North Dakota, and Wyoming are the only states that don’t offer any type of electric car incentive.

  • Tax credits, rebates, electricity credits, and exemptions are the most common incentives offered at the state level for the purchase of an electric vehicle.

  • The federal government offers a number of electric car incentives through the Inflation Reduction Act, including a $7,500 tax credit.

Electric car incentives by state

Most states offer at least some kind of rebate, discount, or tax credit for drivers who purchase an electric vehicle. Kentucky, Montana, North Dakota, and Wyoming are the only states that do not currently offer any financial incentive for drivers who purchase an EV.

The chart below shows electric car incentives by state:

State

Electric vehicle incentive

Alabama

Alabama offers a discounted electric rate for charging your EV between 9 p.m. and 5 a.m.

Alaska

Alaska Power and Telephone (AP&T) offers a $1,000 rebate for residents who purchase a new or used EV.

Arizona

Arizona offers aReduced Alternative Fuel Vehicle (AFV) license tax which allows you to pay taxes on 20% of the vehicle's MSRP.

Arkansas

Arkansas offers a $250 incentive for drivers installing electric chargers in their home.

California

California has a dozen or more EV incentives, includingPlug-In Hybrid and Zero Emission Light-Duty Vehicle rebates, an All-Electric Vehicle (EV) Rebate - MCE, and a Used Electric Vehicle (EV) Rebate Program - LADWP.

Colorado

Colorado offers anEV tax credit for light-duty EVs purchased or leased before January 1, 2026 and anEV rebate through Xcel Energy.

Connecticut

Connecticut offers ahydrogen and electric vehicle (EV) rebate that can save you anywhere from $750 to $7,500, depending on which EV you choose, along withcharging station rebates.

Delaware

Delaware offersalternative fuel vehicle rebates of $1,000 to $2,500, depending on which vehicle you choose.

Florida

Florida offers rebates forpurchasing an electric vehicle andcharging station rebates.

Georgia

Georgia offers a $250 incentive to install EV chargers in their home.

Hawaii

Hawaii offers a discounted electric rate for charging your EV at certain times of day.

Idaho

Idaho offers an exemption from inspections and required maintenance for electric vehicles.

Illinois

Illinois offersEV rebates between $1,500 to $4,000, depending on when you buy an electric vehicle

Indiana

Indiana offers a $500 rebate for signing up for an off-peak charging program.

Iowa

Iowa offers a$500 rebate for purchasing a new electric vehicle.

Kansas

Kansas offers a tax credit of up to $2,400 for the purchase of an electric vehicle.

Kentucky

No electric car incentives currently offered.

Louisiana

Louisiana offers a $250 credit for installing certain types of EV chargers.

Maine

Maine offers anEV rebate between $1,000 and $7,500, depending on whether you are a resident, business, government entity, or tribal government.

Maryland

Maryland offers anEV tax credit of up to $3,000.

Massachusetts

Massachusetts offers anEV rebate between $1,500 to $2,500, depending on which type of car you buy.

Michigan

Michigan offers acharging station rebate.

Minnesota

Minnesota electric companies offer a credit of up to $500 for the installation of EV chargers to drivers who sign up for off-peak charging.

Mississippi

Mississippi offers anEV rebate between $750 and $1,250, depending on the type of car you buy.

Missouri

Missouri offers a $500 rebate for drivers who install EV chargers.

Montana

No electric car incentives currently offered.

Nebraska

Nebraska offers a$4,000 rebate for purchasing an electric vehicle and a$500 rebate for charging stations.

Nevada

Nevada offers a$2,500 rebate for low-income residents who purchase a new or used EV on a first come, first served basis.

New Hampshire

New Hampshire offers anEV rebate of $300 to $1,000, depending on the type of vehicle you buy.

New Jersey

New Jersey offers a$4,000 rebate when you buy or lease a new electric vehicle.

New Mexico

New Mexico offers a $500 rebate for installing EV chargers at home, with a rebate of $2,300 for low-income residents. 

New York

New York offers anEV rebate of up to $2,000 when you buy an eligible electric vehicle.

North Carolina

North Carolina offers a $200 credit on your electric bill if you own an electric vehicle and sign up for a time-of-use rate.

North Dakota

No electric car incentives currently offered.

Ohio

Ohio offers a $250 credit for installing an EV charger.

Oklahoma

Oklahoma offers arebate of up to $200 for owning an electric vehicle.

Oregon

Oregon offers arebate of $5,000 when you purchase a new or used electric vehicle and up to$750 in rebates for purchasing an electric motorcycle.

Pennsylvania

Pennsylvania offers anEV rebate between $500 and $2,000 for income-eligible residents.

Rhode Island

Rhode Island offers anEV rebate between $750 and $2,500, depending on the type of vehicle.

South Carolina

South Carolina offers a $500 credit for installing an EV rebate, along with a monthly credit of $13.87 on your electric bill.

South Dakota

South Dakota offers a $500 credit for installing an EV charger from an approved vendor.

Tennessee

Tennessee offers a $400 rebate for the purchase and installation of an EV charger.

Texas

Texas offersEV rebates between $2,500 and $5,000, depending on the type of vehicle, on a first come, first served basis.

Utah

Utah offers EV rebates between$3,000 and $15,000 for heavy-duty electric vehicle purchases, depending on the year of purchase.

Vermont

There are multiple EV rebates and credits available in Vermont, including rebates fromGreen Mountain Power,Vermont Public Power Supply Authority (VPPSA),Stowe Electric,Burlington Electric Department, andVermont Electric Co-op.

Virginia

Virginia offers different benefits depending on where you are in the state, with some residents getting a $7 monthly credit on their electric bill for enrolling in time-of-use billing and others getting a $200 credit for installing an EV charger.

Washington

Washington offers a$400 bill credit toward the purchase of an electric vehicle.

Washington, D.C.

Washington, D.C. offers an electric vehicletitle excise tax exemption

West Virginia

West Virginia offers residents a $250 rebate for installing an EV charger through their Charge Forward program.

Wisconsin

Wisconsin residents get multiple credit options, depending on where they live. Some residents get a $800 credit for installing an EV charger, while others may be eligible for a free charger if they meet certain requirements.

Wyoming

No electric car incentives currently offered.

Keep in mind that things like laws and tax credits change over time, so it is important to verify any information about discounts, subsidies, and other benefits before purchasing an electric car.

→ Learn about the best and worst states to own an electric car

Types of electric car incentives

Each state has their own rules and regulations when it comes to helping you save money on an electric car. There are many different ways you can save money on the purchase of an electric car, including:

  • Tax credits: Many states offer a tax credit for new or pre-owned EV and PHEV, which means you’ll be able to subtract a certain amount from the total you owe in taxes.

  • Rebates: Some states provide rebates for the purchase of certain electric vehicles or accessories, like Level 2 EV chargers. Getting rebates for multiple purchases can save you an additional $1,000 or more on the purchase and set up of a new or used EV. For example, The Los Angeles Department of Water and Power (LADWP) offers a rebate of up to $1,000 for the purchase and installation of a qualified Level 2 (240-volt) charging station and a $250 rebate for the installation of a dedicated EV meter.

  • Electricity credits: In addition to tax credits and incentive programs offered at the state and federal level, many electric companies offer credits toward your electric bill or discounted rates for people who agree to charge their EV during off-peak hours. For example, qualified Alabama residents can get a discounted rate on their electric bill through an optional rate rider.

  • Exemptions: Some states may choose to offer an exemption from certain taxes or processes (like annual car inspections) rather than offering a tax credit or rebate.

→ Learn about the hidden costs of owning an electric car

Federal vs. state electric vehicle tax credits

Most states offer some benefits for drivers who purchase an electric vehicle, and those benefits can be combined with the electric car rebates and tax credits offered federally as part of the Inflation Reduction Act.

Some of the federal benefits offered for buying an electric vehicle are:

  • A $7,500 tax credit: The Inflation Reduction Act extended the previous $7,500 tax credit, but newer rules put some restrictions on the specific vehicles that qualify — for example, in order to qualify for the tax credit the EV must have had its final assembly in North America.

  • Incentives for EV manufacturers: As of Jan. 1, 2023, manufacturers will no longer be limited on incentives to the first 200,000 EVs sold, which means every qualifying EV purchased in 2023 should be eligible for a tax credit.

  • Rebates for used EVs: You could be eligible for a $4,000 tax credit if you buy a used EV for less than $25,000, but there are several qualifications that need to be met before you can claim the tax credit. 

→ Learn about the best way to find electric car charging stations

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Frequently asked questions

Can I still get the EV tax credit in 2022?

The Inflation Reduction Act extended the EV tax credit of up to $7,500 until December 2032, so you may still qualify for the EV tax credit for 2022. But there are some restrictions on the specific EVs that qualify — for example, the car in question had to have been assembled, at least partly, in North America.

Who is eligible for EV tax credit?

EV tax credit availability is based on a number of factors, including the type and price of your electric vehicle, your income, manufacturing restrictions, and whether your EV is new or used. The best way to find out if you are eligible for a tax credit is to review any applicable laws, including through the IRS and the Department of Energy.

What state has the highest EV rebate?

Utah offers the highest EV rebate, offering up to $15,000 back on your purchase, depending on when you purchase your electric car.

Is there still a government grant for electric cars?

Federal credits for upcoming EV purchases between 2023 to 2032 will be $7,500 for new vehicles and $4,000 for used vehicles, and will apply to the purchase of EVs, plug-in hybrids, and cars with hydrogen fuel cells.

Author

Senior Editor & Licensed Auto Insurance Expert

Rachael Brennan

Senior Editor & Licensed Auto Insurance Expert

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Rachael Brennan is a senior editor and a licensed auto insurance expert at Policygenius. Her work has also been featured in MoneyGeek, Clearsurance, Adweek, Boston Globe, The Ladders, and AutoInsurance.com.

Editor

Senior Managing Editor & Auto Insurance Expert

Anna Swartz

Senior Managing Editor & Auto Insurance Expert

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Anna Swartz is a senior managing editor and auto insurance expert at Policygenius, where she oversees our car insurance coverage. Previously, she was a senior staff writer at Mic.com, as well as an associate writer at The Dodo.

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