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State and Federal Incentives for EVs, PHEVs and Charge Stations

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State Incentives                   

In Place In Progress

Incentive Amount or Rate
Income Tax Credit or Deduction
Sales Tax Exemption
Conversions Included?
Carpool Lane Access?
Infrastructure Incentives
California up to $5,000
Colorado up to $6,000
District of Colombia
Georgia up to $5,000
Illinois up to $4,000
Louisiana up to $3,000
Montana up to $500
New Jersey up to $4,000
New York
Oklahoma 50%
Oregon up to $5,000
South Carolina up to $1,500
Utah up to $2,500

Click here for a map of state incentives

AZ -Lower licensing fees avaiable for BEVs. For PHEVs, eligibility depends on the extent to which the vehicle is powered by electricity.
CA -Rebate system provides $5,000 for BEVs, $3,000 for PHEVs, and $1,500 for electric motorcycles and NEVs. Various utilities throughout the state also offer discounted rates for residential vehicle charging during off-peak hours. Carpool lane access available for BEVs; PHEV access pending in state legislature.
CO -Income tax credit totaling 75-85% of the cost premium for a BEV or PHEV purchase up to $6,000. 20% rebate also available for EV charger installation.
CT - Considering exemption from state sales taxes.
DC - Excise tax exemption and reduced vehicle registration fees.
FL -EVs are exempt from most insurance surcharges. Limited PHEV conversion rebates of $5,000 also available.
GA -Income tax credit for up to 20% of BEV cost (max. $5,000) or 10% of conversion cost (max. $2,500). PHEVs not included.
IL -Covers 80% of cost premium or conversion price, with maximum rebate of $4,000.
LA - Tax credit equalling 50% of cost premium for BEV/PHEV purchase, 50% of conversion cost, or a tax credit worth 10% of the cost of a new BEV/PHEV vehicle (max. $3,000). This same credit also applies to charge station costs.
MA - Considering exemption from state sales taxes and excise taxes. Also considering carpool lane access.
MT - Credit only available for conversion costs. Maximum $500 credit or 50% of conversion cost.
NE - BEVs and PHEVs qualify for Nebraska’s Dollar and Energy Saving Loan Program. Maximum loan amount is $150,000 per borrower, at an interest rate of 5% or less.
NJ - Sales tax exemption for qualifying BEVs, not PHEVs. Rebates on BEV purchases also available for local governments.
NY - Considering exemption from state sales taxes and excise taxes. Also considering carpool lane access.
OK - Applies to either conversion cost or the cost premium of a new BEV purchase. For PHEVs, the credit is based on the portion of the vehicle attributable to propulsion by electricity. Credit also available for 75% of charge station cost.
OR -Credit of up to $5,000 for conversion or purchase costs (PHEV only). Up to $1,500 for purchase of or conversion to BEV.
PA - Considering exemption from state sales taxes.
SC - Income tax credit equalling 20% of federal credits for PHEVs and BEVs. Additional legislation pending.
TX - Considering sales tax exemption and income tax credits.
UT - Up to $750 credit for BEV and PHEV purchases and up to $2,500 credit for conversions.
WA - BEVs are exempt from 6.5% sales tax and PHEVs exempt from the motor vehicle sales tax of 0.3%. Tax exemptions also apply to charge station parts and labor costs.

Federal Incentives

For Cars

$2,500 to $7,500 tax credit, depending on size of battery (4 kWh to 16 kWh), for electric-drive vehicles (EVs and PHEVs) sold after December 31, 2008. This is the best and biggest new incentive brought on by the American Recovery and Reinvestment Act of 2009 (stimulus bill), and applies to at least 200,000 units per auto manufacturer before it phases out.

For 2- or 3-wheelers

10% consumer tax credit for 2- or 3-wheeled vehicles (up to a maximum of $2,500 tax credit on vehicles costing $25,000 and above). This incentive further lowers the cost on the most affordable electric vehicles — electric motorcycles and enclosed 3-wheelers. Vehicles must have a minimum of 2.5 kWh of batteries. Ends the last day of 2011, with possibility for renewal.

For Conversions

10% tax credit for plug-in conversions with a maximum credit of $4,000 (on a $40,000 conversion expense). Available until December 31, 2011. This applies to both PHEV conversions and conversions from combustion engines to EVs. When coupled with tax credits of up to $6,000 being offered by states — including Colorado and Florida so far — converting your car could be an ideal way to go plug-in!

For Charge Stations

Tax credit equaling 50% of the cost to install an EV charge station (as well as other alternative fuel stations), with a maximum $2,000 credit for each station installed. Businesses may take tax credits up to a maximum $50,000 credit for larger installations. Applies to quali?ed equipment installed before the end of 2010.

Source: U.S. Department of Energy Alternative Fuels Data Center (www.afdc.energy.gov)

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