January 09, 2025

The 2025 Guide to Electric Vehicle Tax Credits and Rebates by State

The 2025 Guide to Electric Vehicle Tax Credits and Rebates by State

With the surge in electric vehicle (EV) adoption and extended federal tax credits under the Inflation Reduction Act, 2025 offers a wealth of opportunities for prospective EV buyers. Not only can you benefit from up to $7,500 in federal tax credits, but many states also provide additional incentives such as rebates, exemptions, and discounts on EV chargers and installations. Here’s a comprehensive, state-by-state guide to help you understand what’s available.

Understanding EV Tax Credits and Rebates

Federal vs. State Incentives

Federal tax credits apply nationwide and can reduce the cost of an EV purchase significantly. For example, the federal program offers up to $7,500 for qualifying vehicles. However, state incentives vary widely, with some states offering thousands of dollars in rebates, while others provide modest discounts or none at all. Additionally, utility companies often provide rebates for EV chargers or home charging installations, further lowering the cost of ownership.

State-by-State Breakdown

Below is a snapshot of EV incentives across the United States, sorted alphabetically. For details on eligibility and application processes, visit the respective state or utility websites.

Alabama

EV Charger Rebates: The Alabama Department of Economic and Community Affairs offers grants for Level 2 and DC fast chargers under the EV Charging Infrastructure Program.

Alaska

EV Rebate: Alaska Power and Telephone offers $500 for EV purchases, including electric motorcycles, with a minimum battery size of 14 kWh.

Arizona

Tax Exemptions: Alternative Fuel Vehicles (AFVs) and their associated equipment are exempt from use taxes.
EV Charger Rebates: Tucson Electric Power and Salt River Project offer rebates up to $500 for Level 2 chargers.

California

Grants and Rebates: Programs like Clean Cars for All and the Clean Vehicle Rebate Project provide up to $12,000 for income-qualified residents. Additional rebates are available from local utilities for used EVs and charging equipment.
Charger Incentives: Los Angeles Department of Water and Power offers up to $1,000 for Level 2 chargers.

Colorado

Tax Credits: New EVs can qualify for up to $3,500 in tax credits, with additional credits for trucks and fleet vehicles.
Utility Rebates: Gunnison County Electric Association and San Isabel Electric offer rebates for EV purchases and Level 2 chargers.

Connecticut

CHEAPR Program: Offers up to $9,500 in rebates for new or used EV purchases, with additional incentives for income-qualified residents.
Charger Rebates: Up to $1,000 for residential chargers from Norwich Public Utilities and others.

Delaware

EV and Charger Rebates: Rebates up to $2,500 for new EVs and $1,000 for Level 2 chargers under the Delaware Clean Transportation Incentive Program.

District of Columbia

Tax Exemptions: EVs are exempt from title excise taxes. Reduced registration fees are also available.

Florida

Utility Rebates: Duke Energy provides credits for off-peak charging, and Jacksonville Electric Authority offers up to $300 for charger installations.

Georgia

Conversion Tax Credits: A 10% credit (up to $2,500) for converting vehicles to run on electricity or alternative fuels.
Charger Rebates: Local utilities like Carroll EMC offer $250 rebates for Level 2 chargers.

Illinois

State Rebates: Up to $4,000 for new EVs purchased by June 2026. Motorcycle EV rebates are $1,500.
Utility Incentives: ComEd provides rebates up to $3,750 for Level 2 charger installations.

Maryland

Tax Credits: Up to $3,000 for EV purchases with an MSRP under $50,000.
Charger Rebates: Up to $700 for residential installations.

Massachusetts

MOR-EV Program: Rebates up to $7,500 for light-duty EVs and trucks.
Charger Incentives: National Grid offers rebates for home wiring upgrades and off-peak charging programs.

Michigan

Utility Rebates: DTE Energy and Consumers Energy offer rebates for Level 2 chargers, with additional savings for income-qualified residents.

New Jersey

Charge Up Program: Rebates up to $4,000 for new EVs under $45,000.
Tax Exemptions: EVs are exempt from sales tax.

New York

Drive Clean Rebate: Up to $2,000 for EVs with a range exceeding 200 miles.
Charger Incentives: National Grid offers $15 monthly bill credits for off-peak charging.

Texas

Charger Rebates: Austin Energy provides 50% of installation costs, up to $1,200.
Utility Incentives: SWEPCO offers up to $250 for Level 2 chargers.

Vermont

State Incentives: Rebates up to $4,000 for new EVs through Green Mountain Power.
Utility Discounts: Burlington Electric Department provides additional rebates for low-income customers.

Washington

Tax Exemptions: EVs priced below $45,000 are exempt from state sales tax.
Utility Rebates: Clark Public Utilities offers up to $2,000 for used EV purchases by low-income customers.

EV Charger Incentives

Owning an EV often means installing a Level 2 charger at home. Many states and utilities provide financial assistance for this, making the transition to electric more affordable. For instance:

Alaska: Chugach Electric offers rebates for residential EV chargers.
California: PG&E provides income-eligible customers $700 for EV chargers.
Minnesota: Connexus Energy offers $500 rebates for Level 2 charger installations.

How to Maximize Your Savings

Research State Programs: Start by checking your state’s website for the latest EV incentives.
Utilize Utility Rebates: Contact your local power company for rebates on EV chargers or off-peak electricity rates.
Combine Federal and State Credits: Stack incentives to significantly reduce the cost of your EV and charging setup.
Plan Your Purchase: Many rebates are first-come, first-served, so act quickly.

2025 is shaping up to be a pivotal year for EV adoption in the United States. Whether you’re a first-time buyer or looking to upgrade, leveraging federal, state, and utility incentives can save you thousands of dollars. By understanding your options and acting swiftly, you can make your EV purchase or lease more affordable and environmentally friendly.

For more detailed and up-to-date information on the tax credits and rebates available in your state, visit the original source: Electrek’s EV Tax Credit Guide.