Your Guide to EV Rebates and Tax Credits: Making Electric Cars More Affordable
Electric vehicles (EVs) are becoming more accessible through various rebates and incentives at federal, state, and local levels. Here's what you need to know about available EV incentives and how to maximize your savings.
Federal EV Tax Credits Explained
Who Qualifies Anyone meeting modified adjusted gross income limits can qualify for tax credits on both new and used EV purchases.
Available Credits
- New EVs: Up to $7,500
- Used EVs: Up to $4,000
Vehicle Requirements
- New vehicle price limits:
- Vans, SUVs, pickup trucks: $80,000 or less
- Sedans: $55,000 or less
- Used vehicles: $25,000 maximum
- Vehicle must be for personal use
- Must be purchased in the U.S.
Claiming the Credit Two options:
- Claim as nonrefundable credit on tax return
- Transfer credit to dealer at point of sale (preferred by 90% of buyers)
Additional Savings Opportunities
- State-specific incentives
- Income-based programs
- Utility company discounts
- Commercial EV tax credits for leases
- Manufacturer charging programs
How to Find Local Incentives Use Veloz's EV incentive search tool by entering your ZIP code to discover all available incentives in your area.
The current federal tax credit program began in January 2023, making EVs more affordable through instant price reductions rather than delayed tax rebates. Combined with declining EV prices and a growing used EV market, these incentives are making electric vehicles increasingly accessible to more drivers.
For the most current list of eligible vehicles and credit amounts, visit the FuelEconomy website.
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