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Stimulus Federal Incentives

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Stimulus Bill Breakdown - $14.4B for Plug-Ins

$2 billion in Grants for advanced battery manufacturing, (H.R.1, pg. 24; originally authorized but not funded under the Energy Independence and Security Act of 2007, EISA-Section 135)

$2 billion Plug-in Vehicle Tax Credit (Section 1141 of H.R.1)

  • $2,500 to $7,500, depending on size of battery (4kWh-16 kWh), for electric-drive vehicles (EVs and PHEVs) sold after December 31, 2008. Extends and expands Plug-in credits passed with TARP in October 2008. The original plug-in tax credits remain in place for 2009, then the new provisions start in 2010 for this part of the credit. The IRS will need to create the actual forms and regulations later this year.

  • The credit was changed from 250,000 vehicles total to 200,000 per automaker. Each automaker will get 100% credit for their first 200,000 vehicles, 50% credit for the next two quarters, and 25% credit for the final two quarters.

  • Sales and leases are both covered.

  • There is no limit to the number of vehicle manufacturers that can qualify for this process.

  • Vehicles larger than 14,000 GVWR are removed after 12/31/09 but may get added back in another piece of legislation.

  • 10% separate consumer tax credit for 2-3 wheeled vehicles (up to $25,000 for a $2500 tax credit). This incentive helps the most affordable and already available vehicles including electric motorcycles (Zero Motorcycles, Vectrix, Brammo, Mission Motors, etc.) and enclosed 3 wheelers like Aptera, Persu Mobility, and Myers Motors. Vehicles must have a minimum of 2.5 kWH or battery energy. Sunsets 12/31/2011. (H.R.1 - Section 1142)

  • 10% credit for low speed electrified vehicles (Neighborhood Electric Vehicles), up to $2,500 ($25,000 SRP) until December 31, 2011. (H.R.1-Section 1142)

  • 10% credit for plug-in conversions up to $4,000 ($40,000 conversion value), tax credit also available until December 31, 2011. This applies to both PHEV conversions and ICE to EV conversions. IRS will set exact rules.

$1.7 billion Manufacturing tax credit for advanced energy investments up to 30%, including plug-in vehicle manufacture. (H.R.1-Sec 48C)

$54 million for tax credits on Alternative Refueling Property (including EV/PHEV charging). They raised the limit from 30% and $30,000 to 50% and $50,000, until 1/1/2011. They also increased the residential refueling property tax credit to 50% of up to $2000 (This is a TARP modification). (H.R.1- Sec 1123)

$400 million for deployment of plug-in infrastructure and vehicles. (EISA Sec 543B, H.R.1-pg.24).

$300 million for the federal purchase of commercially available high-efficiency vehicles (including hybrid, plug-in hybrid, and battery electric vehicles) to remain available until September 30, 2011. (H.R.1-pg. 36)

$300 million to regional deployment of electric drive and alternative fuel vehicles (CleanCities grant support via DOE funding).

$10 million additional for administration of Advanced Technology Vehicles Manufacturer Loan Program (EISA-2007, H.R.1-Title 17, pg. 26)

$6 billion additional to Innovative Technology Loan Guarantee program which could go to plug-ins. (authorized under Energy Policy Act of 2005). This program provides loan funding to help automakers retool to make much more fuel efficient vehicles like EVs and PHEVs. (H.R.1-pg. 26)

$1.7 billion - The new automobile purchase sales tax credit will also apply to plug-ins. The bill provides all taxpayers with a deduction for State and local sales and excise taxes paid on the purchase of new cars, light truck, recreational vehicles, and motorcycles through 2009. This deduction is subject to a phase-out for taxpayers with adjusted gross income in excess of $125,000 ($250,000 in the case of a joint return). (HR1-Section 1008)

Links to the full legislation and the key summaries

Pie Charts

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Local Incentives for Plug-ins

There are now at least sixteen states that have either passed or have under consideration plug-in tax credits (BEV or PHEV).  Follow State incentive developments.

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