Electric Car Incentives by State 2023

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 a Reduced 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, including Plug-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 an EV tax credit for light-duty EVs purchased or leased before January 1, 2026 and an EV rebate through Xcel Energy.
Connecticut	Connecticut offers a hydrogen and electric vehicle (EV) rebate that can save you anywhere from $750 to $7,500, depending on which EV you choose, along with charging station rebates.
Delaware	Delaware offers alternative fuel vehicle rebates of $1,000 to $2,500, depending on which vehicle you choose.
Florida	Florida offers rebates for purchasing an electric vehicle and charging 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 offers EV 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 an EV rebate between $1,000 and $7,500, depending on whether you are a resident, business, government entity, or tribal government.
Maryland	Maryland offers an EV tax credit of up to $3,000.
Massachusetts	Massachusetts offers an EV rebate between $1,500 to $2,500, depending on which type of car you buy.
Michigan	Michigan offers a charging 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 an EV 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 an EV 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 an EV 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 a rebate of up to $200 for owning an electric vehicle.
Oregon	Oregon offers a rebate 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 an EV rebate between $500 and $2,000 for income-eligible residents.
Rhode Island	Rhode Island offers an EV 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 offers EV 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 from Green Mountain Power,Vermont Public Power Supply Authority (VPPSA),Stowe Electric,Burlington Electric Department, and Vermont 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 vehicle title 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.

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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. Drivers who want to purchase an electric vehicle should check to make sure no changes or updates have been made to the law before making a purchase.

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 2023?

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 2023. 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.