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Powering Up: 7 States Offering Cash Incentives for EV Purchases

Unlocking EV Savings: Combining Federal and State Incentives

How the Federal EV Tax Credit Works

(PHOTO: Powering Up: 7 States Offering Cash Incentives for EV Purchases)

According to CNET, apart from the federal government, many states additionally offer tax breaks worth thousands of dollars that can be combined with the federal discount for prospective EV buyers. The federal tax rebate for electric vehicles, which can be worth up to $7,500, may be enough to persuade many drivers to choose an EV for their next car. Depending on your state, you could save up to $15,000 on an EV purchase when you combine the federal rebate with a state incentive. However, determining your eligibility for these incentives can be challenging.

Unlike most tax credits, which operate as rebates, the federal government’s EV tax credit is structured as a discount deducted directly from the vehicle’s sticker price by car dealerships. This eliminates the need for consumers to file for a rebate later, thereby simplifying the process and potentially influencing their purchasing decisions.

The U.S. government is providing incentives to encourage car buyers to purchase electric vehicles. New electric cars are eligible for a reduction in their purchase price, ranging from $3,750 to $7,500. Additionally, buyers of used electric vehicles can receive a tax credit of up to $4,000. The exact amount of the credit depends on the vehicle’s make, model, manufacturing location, and cost. A detailed list of eligible vehicles and their respective credit amounts is available on the government’s website. This incentive is unique in that authorized car dealerships can directly apply the discount at the time of purchase, eliminating the need for the buyer to file for a tax rebate later.

READ ALSO: Fourth Stimulus Check: $1,600 Tax Boost For Eligible Americans In February 2024

Potential EV Incentives in Other States

Several states offer substantial incentives for purchasing electric vehicles (EVs). Colorado provides up to $7,500 off the purchase of a new EV, with eligibility criteria based on the vehicle’s sticker price. Maine offers a similar discount, along with additional rebates for residents based on income levels. Massachusetts provides rebates ranging from $1,000 to $3,500 for purchasing new or used EVs. Maryland offers up to $3,000 off EV purchases under $50,000, along with discounts on home charger installations. Delaware provides rebates of up to $2,500 for eligible EV purchases, while New York offers up to $2,000 off the purchase or lease of a new EV through its Drive Clean Rebate program. Additionally, although California‘s state-wide EV rebate program closed in November 2023, some metropolitan areas offer their own rebates, such as a $2,000 rebate for income-eligible customers of Peninsula Clean Energy.

Several states provide rebates for purchasing electric vehicles (EVs), often citing the potential benefits to air quality from reducing the number of gas-powered cars on the road. Aside from the seven states mentioned previously, there are numerous others with EV rebate programs that require additional funding or are exploring the possibility of implementing new incentives altogether.

Various online resources provide information about state-level incentives for electric vehicles. One such resource is the US Department of Energy’s state-level search tool, which lets users see current incentives for electric, hybrid, and plug-in hybrid vehicles. According to Glenn, states like New Jersey, Oregon, Texas, Illinois, Washington, and Minnesota offer notable incentives for electric vehicles.

Aside from federal and state programs, numerous local governments and utility companies provide additional incentives for electric vehicle (EV) purchases. The US Department of Energy has a tool that allows users to search for local incentives by utility, covering EVs, hybrids (HEVs), and plug-in hybrids (PHEVs). Furthermore, contacting the local city or electricity provider might reveal additional rebates that can be combined with federal and state tax credits.

READ ALSO: $4,200 Stimulus Checks For Low Income, Seniors, And Disabled Individuals Arriving In February 2024

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