The era of federal EV incentives in the United States is coming to an end, as the $7,500 federal tax credit is set to expire tomorrow. This marks a significant shift in the auto industry, especially for electric vehicle sales. The Trump administration’s decision to eliminate this tax credit has prompted a surge in EV purchases in the final days leading up to the deadline. In fact, automakers managed to sell a record 410,000 EVs in the third quarter, accounting for 11% of overall sales, according to Cox Automotive.
While the federal tax credit may be disappearing, some states are still offering significant rebates and incentives to encourage the adoption of electric vehicles. Residents in about 15 states can still benefit from these programs, potentially saving up to $7,500 on a new EV, depending on their eligibility.
However, it’s worth noting that not all states will continue to provide rebates. California’s popular Clean Vehicle Rebate Project ended in 2023, and efforts to revive it post-federal tax credit have been unsuccessful. Other states like Minnesota, Washington, and Vermont have also depleted their funding for local EV rebate programs. The future of these programs remains uncertain and may require legislative action to resume.
For those states still offering rebates, eligibility criteria vary and often prioritize low- and moderate-income families. Factors such as tax liabilities, vehicle price, battery size, model year, and even driving range can impact the incentives available. It’s essential for residents to research and take advantage of all possible rebates and discounts from automakers, local governments, and utility companies.
Some states also cover the cost of Level 2 home chargers, making it easier for EV owners to charge their vehicles at home. It’s crucial to explore all available incentives and ensure compliance with state requirements.
The list of states offering EV rebates and tax credits is subject to change, so it’s essential to stay updated on the latest information. By taking advantage of these programs, individuals can make the switch to electric vehicles more affordable and accessible.