Electric Vehicle Incentives In 8 US States

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Editor’s note: Electric vehicle incentives are available in several US states. We’ve shared summaries and lists of the available subsidies in the past, but it’s been a while and incentives are frequently changing. Below is a nice, simple, clear update from Matt Pressman and Zebra on 8 top US states. To check out the incentives in other states, head over to the Plug In America page for EV incentives.

Originally posted on EVANNEX.

In the US, the federal tax credit for electric vehicles has been cut in half from $7,500 to $3,750 for both Tesla and GM. Now, the current administration looks like it’s turning its back on clean cars. In the future, there could be some hope things change. But with the federal tax credit currently winding down, it’s worth investigating what electric car incentives also exist on the state level.

Photos by Zach Shahan | CleanTechnica

“State governors, and not the federal government, are emerging as the leaders on vehicle electrification,” Axios recently reported. So, are you aware which states have the best EV incentives available today? If not, don’t fret — The Zebra has you covered. The auto insurance experts analyzed which states have the best tax benefits, incentives, and government-offered rebates to promote electric vehicle ownership and use.

Source: The Zebra

The Zebra compiled a list of the top 8 states that offer EV incentives. That said, each state has a slightly different set of rules and regulations for the tax rebates they provide. So be sure to review thoroughly in order to see precisely what type of EV-friendly tax incentives these highlighted states offer. Also, don’t forget to claim your federal tax credit if you qualify.


Rebate rates available by year (phaseout of tax program in place):

  • 2019: $5,000 for purchase, $2,500 for lease
  • 2020: $4,000 for purchase, $2,000 for lease
  • 2021: $2,500 for purchase, $1,250 for lease

Colorado offers the above tax rebates for purchasing or leasing an electric vehicle. Colorado has a phaseout plan implemented for this tax program, so if you live in Colorado and are considering purchasing an electric vehicle, be sure to do it sooner rather than later. These years refer to the year you purchase an electric vehicle, not the year the vehicle was made.


Rebate rates available:

  • Plug-in hybrid: $1,000 rebate for 45 miles or greater range, $500 rebate for less than 45 miles range
  • Battery electric: $2,000 rebate for 200 miles or greater range, $1,500 rebate for 120–199 miles range, $500 rebate for less than 120 miles range
  • Fuel cell electric: $5,000

The Connecticut Hydrogen and Electric Automobile Purchase Rebate offers the above incentives for purchasing or leasing the specified vehicle types. To be eligible, the vehicle’s MSRP can’t exceed $50,000 for plug-in hybrid and battery electric vehicles and must not exceed $60,000 for fuel cell electric vehicles.


Rebate rates available:

  • Battery electric vehicles: $3,500
  • Plug-in hybrid vehicles: $1,500

Delaware also offers rebates for retrofitted battery electric vehicles and plug-in hybrid electric vehicles. Read through Delaware’s clean fuel and transportation initiatives to learn more.


Rebate rates available:

  • Battery electric or plug-in hybrid vehicles: $100 per kilowatt-hour (kWh), up to $3,000
  • Home charging equipment: 40% off, up to $700

Maryland offers the above incentives for all vehicles below $60,000 MSRP. Maryland is also one of the only states to offer a discount on home charging equipment.


Rebate rates available:

  • Zero-emission EV: $2,500 for purchase or lease
  • Plug-in hybrid: $2,500 for purchase or lease

California’s Clean Vehicle Rebate Project offers the above tax rebate for zero-emission and plug-in hybrid vehicles. The program does have income eligibility restrictions that can disqualify you from the rebate. Those income caps are:

  • $150,000: for single filers
  • $204,000: for head–of–household filers
  • $300,000: for joint filers


Rebate rates available:

  • Battery electric vehicles: $2,500
  • Plug-in hybrid vehicles: $1,500

The Massachusetts MOR-EV program offers the above rebates on vehicles under $60,000 MSRP. Massachusetts also offers $700 off the purchase of an electric vehicle charger. If your vehicle is over $60,000 MSRP, you can still claim $1,000 through the MOR-EV program.


Rebate rates available:

  • Battery electric vehicles with 10 kWh+ capacity: $2,500 purchase or lease
  • Plug-in hybrid vehicles with 10 kWh+ capacity: $2,500 purchase or lease
  • Battery electric vehicles with capacity of less than 10 kWh: $1,500 purchase or lease
  • Plug-in hybrid vehicles with capacity of less than 10 kWh: $1,500 purchase or lease

Technically, the Oregon Clean Vehicle Rebate Program is not a tax credit, but rather a cash rebate on any qualifying purchase or lease. Read through its FAQ to learn more.


Rebate rates available:

  • Electric vehicles over $60,000: $500
  • Electric vehicles under $60,000: $2,000

New York’s above tax rebates are part of its Drive Clean Rebate program. The program has adjusted rates for the EPA ranges of the car. Those rates are:

  • Greater than 120 miles: $2,000
  • 40 to 119 miles: $1,700
  • 20 to 39 miles: $1,100

Photos by Cynthia Shahan | CleanTechnica

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Matt Pressman

Matt is all about Tesla. He’s a TSLA investor, and he loves driving the family's Model 3, Model S, and Model X company cars. As co-founder of EVANNEX, a family business specializing in aftermarket Tesla accessories, he’s served as a contributor/editor of Electric Vehicle University (EVU) and the Owning Model S and Getting Ready for Model 3 books. He writes daily about Tesla and you can follow his work on the EVANNEX blog.

Matt Pressman has 332 posts and counting. See all posts by Matt Pressman