Incentives for High-Efficiency Vehicles
The high cost of advanced-technology fuel-efficient vehicles is a major barrier to their entry into the marketplace. To encourage consumers to purchase these vehicles, states may offer a number of financial incentives, including tax credits, rebates, and sales tax exemptions.
No policy in place or proposed for the purchase of electric vehicles.
Last Reviewed: November 2024
While not providing direct incentives for high-efficiency vehicles at the state level, Alaska has the following NEVI and utility incentives:
State Incentive: In 2023, the Alaska Energy Authority's NEVI Program solicited competitive applications to install electric vehicle supply equipment at up to 14 sites throughout the State along Alaska's Alternative Fuel Corridor, supporting the existing and future demand for electrified transportation. Entities that were eligible to receive NEVI funds include public, private, non-profit, etc.
Utility / Private Incentives:
CEA offers rebates to commercial customers for the purchase and installation of Level 2 and direct current (DC) fast chargers. Rebates are available in the following amounts:
Commercial DC Fast Charger; up to $5,000 per EV charger; up to $10,000 per location
Commercial Level 2 Charger; up to $1,000 per EV charger; up to $2,000 per location
AP&T offers a rebate of $500 to residential customers who own a new or pre-owned EV, including electric motorcycles, with a minimum battery size of at least 14 kilowatts.
AELP offers a TOU rate to residential and small commercial customers who own or lease EVs with batteries greater than 16 kilowatts.
CEA offers a $200 bill credit to eligible residential customers who provide proof of ownership of a Level 2 EV charger. Customers may receive up to $400 per household.
Last Reviewed: November 2024
We were unable to find information indicating any incentives for this category.
Last Reviewed: November 2024
We were unable to find information regarding rebates and/or tax credit incentives for high-efficiency vehicles.
Last Reviewed: November 2024
AB 118 targets medium- and heavy-duty trucks in a voucher program whose goal is to reduce the up-front incremental cost of purchasing a hybrid or zero-emission vehicle. Vouchers for up to $120,000 are available through the Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) program, depending on vehicle specifications, and are paid directly to fleets that purchase qualifying trucks for use within the state.
California also offers rebates of up to $5,000 for light-duty zero-emission EVs and plug-in hybrid EVs on a first-come, first-served basis through the Clean Vehicle Rebate Project (CVRP) program.
Financing Assistance for Lower-income Consumers offers lower-income consumers a low-interest loan and a vehicle price buy-down to purchase a new or used zero-emission, plug-in hybrid electric, or hybrid vehicle. Lenders are offered a loan loss reserve to mitigate their risk."
Clean Cars 4 All (CC4A) provides incentives to help lower-income consumers living in priority populations to replace their old higher-polluting vehicles with newer and cleaner transportation. Participants have the option to purchase or lease a new or used hybrid electric vehicle, plug-in hybrid electric vehicle (PHEV), zero-emission vehicle (ZEV), or zero-emission motorcycle (ZEM). Zero-emission vehicles include battery electric and fuel cell electric vehicles. Alternative mobility options are also available, and participants may choose to purchase an e-bike or receive a voucher for public transit. Combining alternate mobility options is also allowed. Additionally, buyers of PHEVs and BEVs are also eligible for home charger incentives or prepaid charge cards if home charger installation is not an option. https://ww2.arb.ca.gov/our-work/programs/clean-cars-4-all
The Driving Clean Assistance Program (DCAP) is a new program that will provide a statewide Financing Assistance Program and expand the Clean Cars 4 All (CC4A) program to air districts that do not offer CC4A at the local level. https://ww2.arb.ca.gov/resources/fact-sheets/driving-clean-assistance-program
The Clean Mobility Options (CMO), Clean Mobility in Schools (CMIS), and the Sustainable Transportation Equity Project (STEP) programs fund sustainable community-based transportation equity mobility projects that support the transportation needs (other than vehicle ownership) of low-income residents and those living in low-income, disadvantaged, and tribal communities. https://ww2.arb.ca.gov/our-work/programs/clean-mobility-options https://ww2.arb.ca.gov/resources/fact-sheets/clean-mobility-schools-project https://ww2.arb.ca.gov/resources/fact-sheets/sustainable-transportation-equity-project
The Clean Truck and Bus Voucher Incentive Project (HVIP) program supports the purchase of zero-emission vehicles by providing vouchers to offset the incremental cost of medium- and heavy-duty trucks and buses. HVIP Standard offers purchase incentives for a wide variety of medium- and heavy-duty on-road vehicle types, while set-asides within HVIP offer focused support for certain vehicles such as drayage trucks, public transit buses, and public-school buses. https://ww2.arb.ca.gov/our-work/programs/clean-truck-bus-vouchers-hvip
The Zero-Emission Truck Loan Pilot Project provides financing opportunities for heavy-duty zero-emission vehicles and infrastructure. This project replaces the original Truck Loan Assistance Program which helped small-business fleet owners who were affected by CARB’s In-Use Truck and Bus Regulation secure financing for upgrading their fleets to new trucks of any fuel type. https://ww2.arb.ca.gov/our-work/programs/zero-emission-truck-loan-pilot
The Carl Moyer Memorial Air Quality Standards Attainment Program (Carl Moyer Program) provides grant funding for cleaner-than-required engines, equipment, and other sources of air pollution. The Carl Moyer Program is implemented as a partnership between CARB and California’s 35 local air districts. On-road project categories include heavy-duty truck and buses, school buses, transit vehicles, drayage trucks, public agency and utility vehicles, emergency vehicles, and solid waste collection vehicles. https://ww2.arb.ca.gov/our-work/programs/carl-moyer-memorial-air-quality-standards-attainment-program
The Community Air Protection Incentives Program (CAP Incentives Program) also provides funding to put advanced technologies to work in the California communities that are most heavily impacted by disproportionate levels of air pollution. Eligible vehicle incentives include replacements for trucks, buses, dial-a-ride transit vehicles, locomotives, and harbor craft. https://ww2.arb.ca.gov/our-work/programs/community-air-protection-incentives
Last Reviewed: November 2024
As of July 1, 2023, Colorado offers a flat $5,000 credit for the purchase or lease of a light-duty electric vehicle and starting January 1, 2024, now makes the credits assignable to a car dealer in addition to a finance company effectively turning the credit into a point of sale incentive. In addition, starting July 1, 2023, any vehicle with an MSRP under $35,000 is eligible for an additional $2,500 tax credit, also available at point of sale. The $5,000 tax credit begins to ratchet down beginning in 2025 and phases out entirely in 2029. Credits are also available for medium- and heavy-duty trucks, which phases down beginning in 2026 and phases out in 2032. Starting in April 2024, Colorado introduced a $450 tax credit for purchase of an electric bike which is only available at point of sale.
Link here
Last Reviewed: November 2024
Connecticut offers incentives for the purchase or lease of eligible new light duty battery electric vehicles (BEVs), plug-in hybrid electric vehicles (PHEVs) and fuel cell electric vehicles (FCEVs) with a base vehicle MSRP of $50,000 or less to all Connecticut residents who purchase or lease from licensed Connecticut new car dealerships and certain used and on-line direct from OEM sellers. CHEAPR Rebate + Used also offers incentives for EJ residents and LMI residents
DEEP is also developing a light duty fleet incentive program, a heavy duty vehicle incentive progam and an electric school bus grant program to fill funding gaps associated with EPA's clean school bus program.
A list of new eligible vehicles is available here, and the list continues to grow as manufacturers release new models.
See here for EVSE incentive levels 2022.
Eversource and United Illuminating has program as well. https://www.utilitydive.com/news/avangrid-evs-electric-vehicles-demand-response/628760/
Last updated: November 2024
The Department of Natural Resources and Environmental Control, Division of Climate, Coastal & Energy offers monetary incentives for alternative fuel vehicles. The Delaware Clean Vehicle Rebate Program offers rebates to Delaware residents and businesses for the purchase of new alternative fuel vehicles such as battery electric and plug-in hybrid electric passenger vehicles. The program offers rebates of up to $2,500 for new battery electric passenger vehicles with a base MRSP below $40,000. New battery electric vehicles with a base MSRP between $40,000 and $50,000 receive a $1,500 rebate. New plug-in hybrid vehicles with a base MSRP below $50,000 receive a $1,000 rebate. The program offers rebates of $2,500 for used battery electric vehicles with a purchase price not exceeding $40,000. The program also offers rebates of $1,000 for used plug-in hybrid vehicles with a purchase price not exceeding $40,000.
Last updated: November 2024
The District of Columbia allows owners of Alternative Fuel Vehicles (AFV) and vehicles that achieve an estimated average city fuel economy of 40mpg according to the EPA to be exempt from vehicle excise taxes. Reduced vehicle registration fees also apply to owners of such vehicles.
The DOEE is working to produce a Transportation Electrification Roadmap (Roadmap), required by Title V of the Clean Energy DC Omnibus Amendment Act of 2018 (CEDC Act). This Roadmap will build on the District's overarching goal of becoming carbon neutral by 2050, and incorporate more specific transportation goals identified in the Clean Energy DC Plan (CEDC Plan), moveDC Plan, and Sustainable DC 2.0 Plan. While the District cannot directly influence the kind of cars people buy, it can help to increase the use of electric vehicles in carsharing, public transit fleets, and private sector fleets. Because of the slow turnover of private vehicles, if actions to promote electric vehicles are not initiated soon, it will be much harder for the District to achieve its goal of achieving carbon neutrality by 2050.
A new motor vehicle with a U.S. Environmental Protection Agency estimated average city fuel economy of at least 40 miles per gallon is eligible for a reduced vehicle registration fee of $36. This reduced rate applies to the first two years of registration and only the original purchaser, as denoted by the Manufacturer Certificate of Origin, is eligible.
Last updated: November 2024
No policy in place or proposed.
Last Reviewed: November 2024
An income tax credit is available for 10% of the cost to convert a vehicle to natural gas, electricity, propane, and hydrogen, up to $2,500 per vehicle
Last updated: November 2024
From the AFDC website: The Hawaii State Energy Office (HSEO) and Hawaii Department of Heath offers rebates of up to 45% of the replacement of qualified medium- and heavy-duty diesel vehicles with zero emission vehicles. Eligible vehicles include medium- and heavy-duty trucks; school, shuttle, tour, and transit buses; airport and port cargo handling equipment. Rebates may also cover up to 45% of the cost of an electric vehicle charging station. Rebates are available on a first-come, first-served basis. The program is funded by Hawaii’s portion of the Volkswagen (VW) Environmental Mitigation Trust and the Diesel Emissions Reduction Act.
Last updated: November 2024
Medium- and Heavy-Duty Diesel Vehicle Replacement Rebates: The Idaho Department of Environmental Quality (IDEQ) offers rebates for the replacement of qualified medium- and heavy-duty diesel vehicles with new diesel or alternative fuel vehicles. Rebates are available for medium- and heavy-duty trucks, school, shuttle, and transit buses, freight switchers, airport ground support equipment, forklifts, and port cargo handling equipment. Vehicles must meet model year requirements, which vary by vehicle type.
Last updated: November 2024
The Illinois Environmental Protection Agency will offer a $4,000 rebate toward the purchase of new or used EV from July 1, 2022 through June 30, 2026. Rebates decline after that period. A rebate of $2,000 is available for the same from July 1, 2026 to June 30, 2027 and $1,500 starting July 1, 2028 EV fleet owners are also exempt from the $20 per vehicle fee that applies to fleets with more than 10 vehicles
Fleet User Fee Exemption: Owners of electric vehicle fleets are exempt from this $20 fee
Last updated: November 2024
We were unable to find information for high-efficiency vehicle incentives.
Last updated: November 2024
We were unable to find information for high-efficiency vehicle incentives.
Last updated: November 2024
We were unable to find information for high-efficiency vehicle incentives.
Last updated: November 2024
We were unable to find information for high-efficiency vehicle incentives.
Last updated: November 2024
The state has an Alternative Fuel Tax Credit, however it does not include electric vehicles. A previous Alternative Fuel Vehicle (AFV) Tax Credit that included EVs expired in 2022.
Last Reviewed: November 2024
Efficiency Maine has continuously offered rebates on electric vehicles since 2019 and grants for public EV charging stations. Initial funding of as a result of allocating $5 million of Volkswagen (VW) settlement funds was allocated to these objectives (Link). Subsequently, Efficiency Maine also received additional funding allocations for rebating EVs in the amount of $5 million from the New England Clean Energy Connect (NECEC) Settlement and $3.5 million from the State General Fund (LD 1995). In 2023, Maine adopted the Beneficial Electrification Policy Act which authorizes Efficiency Maine to fund an incentive program for fuel switching to electric vehicles where doing so meets the test of being: cost-effective reducing pollution and reliably reducing electricity rates for transmission and distribution over the life of the measure. In 2024 Efficiency Maine launched the study to determine the budget that will be needed to satisfy this requirement in regard to EVs. Funds needed to meet this budget are authorized to be collected in electricity utility rates.
Last Updated: November 2024
In fiscal year 2022, MEA has offered a Clean Fuels Incentive Program (CFIP); under CFIP, funds are available for the incremental costs of alternative fuel fleet vehicles, including battery electric fleet vehicles (BEV). Class 3-7 BEVs were eligible for an award of up to $80K per vehicle while Class 8 BEVs were eligible for awards of up to $150K per vehicle, up to 100% of incremental costs.
Chapter 234 of 2022 also reestablishes an excise tax credit program for zero-emission plug-in electric drive vehicles or fuel cell vehicles, and authorizes up to $8.25 million in funding from the Strategic Energy Investment Fund to be transferred to the Transportation Trust Fund to offset the reduction in revenues from the excise tax credits. The credits are set at $3000 for each zero emission plug-in electric drive or fuel cell vehicle, and newly establishes a $1000 credit for each two-wheeled zero-emission electric motorcycle, and $2000 credit for each three-wheeled zero emission electric motorcycle or autocycle.
Last updated: November 2024
The Massachusetts Offers Rebates for EVs (MOR-EV) program offers rebates of up to $3,500 to customers purchasing plug-in EVs. Additional rebates are available for income-qualified drivers and for trading in qualified vehicles. Class 2b pickup trucks and vehicles are eligible for a rebate of $7,500. Vehicle classes 3-8 are eligible for higher incentive amounts under MOR-EV’s truck program.
Last updated: November 2024
No policy in place or proposed. However, Executive Directive 2020-01 created the Office of Future Mobility and Electrification in 2020, with a mission of enhancing Michigan’s mobility ecosystem, including developing dynamic mobility and electrification policies and supporting the startup and scale up of emerging technologies and businesses. Among the office's objectives is supporting the transition from internal combustion engine vehicles to EVs and expanding access to charging infrastructure.
Last Reviewed: November 2024
EV Rebates:
In February 2024 Minnesota launched an EV rebate program for eligible cars and motorcycles provided by the MN Department of Commerce. The owners or leases of new EV vehicles are eligible for up to $2500 and used EV owners up to $600. Complete information is available at the program page.
Toll credits of $125 for a PHV and $250 for BEVs is available for vehicles purchased between November 1, 2019-October 31, 2025.
Last updated: November 2024
We were unable to find information indicating incentives for high efficiency vehicles.
Last updated: November 2024
We were unable to find information indicating incentives for high efficiency vehicles.
Last updated: November 2024
We were unable to find information indicating incentives for high efficiency vehicles.
Last Reviewed: November 2024
We were unable to find information indicating incentives for high efficiency vehicles.
Last Reviewed: November 2024
No policy in place or proposed.
Last Reviewed: November 2024
We were unable to find information indicating tax incentives and/or rebates for high efficiency vehicles. However, under NH's Diesel Emission Reduction Act (DERA) funded State Clean Diesel Grant Program, funds are awarded to public and private entities for the replacement of older Class 5-8 diesel vehicles, engines, and equipment. The New Hampshire Department of Environmental Services (NHDES) administers the funding through a ""Request For Proposals (RFP)"" bid process, and has incorporated bonus points for electrification into the scoring criteria. Projects proposing replacement with electric units are also eligible for a higher percentage of program funding and eligible costs include one electric vehicle (EV) charging station per unit. The older vehicles/equipment are destroyed.
NHDES is also the Lead Agency for NH's Volkswagen (VW) Mitigation Trust funds. In the fall of 2023, NHDES released a $10 million municipal funding opportunity titled "Granite State Clean Fleets," seeking proposals to replace older medium- and heavy-duty (MHD) diesel vehicles/equipment. Projects proposing replacement with electric units were awarded bonus points during the scoring process.
Last updated: November 2024
Several incentives for purchasing electric vehicles are in place: Consumers will receive up to $4,000 when they buy or lease an all-electric or plug-in hybrid vehicle with an MSRP below $55,000 in New Jersey; eligible vehicles with an MSRP above $45,001 received up to $2,000 in FY23 and FY24 . In FY25 The Charge Up Program is proposed to have a base $2,000 incentive for eligible vehicles (MSRP below $55,000) which can be stacked with an additional $2,000 low-and-moderate income incentive. The Charge Up Program is a 10 year program; FY 25 will be the fifth year. The Post-Purchase Incentive was opened on May 27, 2020, the Point of Sale (POS) was launched on July 6, 2021 and remains open while funding is available and re-opens in the new fiscal year.
NJEDA provides vouchers with base values ranging between $20,000 to $175,000 for medium-and-heavy duty vehicles.
Vehicles that have an EPA fuel economy rating of less than 19 mpg or cost $45,000 or more in sales or lease price are subject to a fuel-inefficient vehicle fee.
Last updated: November 2024
No policy in place or proposed.
Last Reviewed: November 2024
Pursuant to legislation passed in April 2016, NYSERDA developed the Drive Clean Rebate, a rebate program for zero emission vehicles that launched in March 2017. Rebates of up to $2,000 per vehicle are available for battery electric vehicles, plug-in hybrid electric vehicles, and fuel cell vehicles. New York also started the New York Truck Voucher Incentive Program in 2013. Vouchers of up to $385,000 are available for the purchase of all-electric, and fuel cell class 4-8 trucks and buses (incentive levels vary by vehicle size, fuel type, and incremental cost). In November 2023, New York launched the NY School Bus Incentive Program, which provides incentives for zero-emission school buses and associated charging infrastructure. NYSBIP incentives can cover up to 100% of the incremental cost of the buses and up to 100% of the cost of charging infrastructure.
Last updated: November 2024
We were unable to find information indicating incentives for high efficiency vehicles.
Last updated: November 2024
We were unable to find information indicating incentives for high efficiency vehicles.
Last updated: November 2024
We were unable to find information indicating incentives for high efficiency vehicles.
Last Reviewed: November 2024
No policy in place or proposed, however a tax credit is available for up to 45% of the cost of installing commercial alternative fueling infrastructure (eligible fuels include natural gas, propane, and electricity). Source: Alternative Fuels Data Center.
Last Reviewed: November 2024
The Oregon Clean Vehicle Rebate Program offers rebates of $1,500–2,500 toward the purchase of a new hybrid or battery electric vehicle, depending on battery capacity. Rebates of $5,000 are available to income-qualified residents for the purchase of new and used EVs. All eligible vehicles must have a base MSRP of less than $50,000. There is also a K-12 ZEV funding program that draws from Public Purpose Charge funds.
Last updated: November 2024
The Alternative Fuels Incentive Grant Program offers rebates to assist eligible residents in purchasing new alternative fuel vehicles. Qualified electric vehicles earn a rebate of $3,000 for EVs vehicles, $1,500 for PHEVs and $500 for electric motorcycles. Income-qualified individuals can get an additional $1,000 rebate.
The Pennsylvania Department of Environmental Protection (DEP) offers rebates for the replacement or repower of Class 4-8 medium- and heavy-duty vehicles with new diesel, electric, or alternative fuel vehicles.
Last updated: November 2024
On July 7, 2022, OER launched the DRIVE EV rebate program
Driving Rhode Island to Vehicle Electrification (DRIVEEV), will support adoption of EVs by Rhode Island residents, small-businesses, non-profits, and public sector entities. Residential applicants may qualify to receive rebates of up to $1500.00 for the purchase or lease of new battery electric vehicles and fuel-cell electric vehicles and up to $1,000.00 for new plug-in hybrid electric vehicles.
The project also offers rebates of up to $1,000.00 for the purchase or lease of used battery electric vehicles and fuel-cell electric vehicle and up to $750.00 for used plug-in hybrid electric vehicles. Additionally, there's an additional rebate available for income-qualified applicants.
From the launch date to May 19, 2024, Rhode Island has issued 1,558 rebates across the different tiers of our DRIVE project, totaling $3,162,250 awarded rebates. (https://drive.ri.gov/project-statistics)
Additionally, OER launched an electric bicycle (e-bike) rebate program in October 2022, called the Erika Niedwoski Memorial Electric Bicycle rebate program. This rebate helps increase access to zero emission ebikes, making them more affordable and accessible to Rhode Islanders. The standard rebate provides up to $350, or 30% (whichever is less) of the final purchase of an e-bike, or e-cargo bike. Limit of 2 rebates per household. The Income-Qualified Rebate provides up to $750, or 75% (whichever is less) on the total purchase of an e-bike, or e-cargo bike. Limit of 2 rebates per household.
Last updated: November 2024
We were unable to find information indicating incentives for high efficiency vehicles.
Last updated: November 2024
We were unable to find information indicating incentives for high efficiency vehicles.
Last Reviewed: November 2024
We were unable to find information indicating state incentives for high efficiency vehicles.
Last Reviewed: November 2024
Light-Duty Motor Vehicle Purchase or Lease Incentive Program (LDPLIP): Electric vehicles weighing 8,500 pounds or less are eligible for a $2,500 rebate.
Last updated: November 2024
Taxpayers may be eligible for a tax credit for the purchase of a qualified heavy-duty AFVs (including electric, natural gas and hydrogen fuels). Credit amounts start at $12,000 in 2023 and decrease to $1,500 in 2030.
Utah has two Vehicle Repair and Replacement Programs (VRRAP), one for the Cache valley area (Cache County, UT and Franklin, ID) and the other is for the Northern Wasatch Front area (Box Elder, Davis, Tooele, Salt Lake, and Weber Counties). Through the VRRAP, low-income individuals that live, work, or go to school in an eligible county that have a vehicle that would fail an emissions inspection will be offered financial assistance to either repair the vehicle or replace it with a newer, cleaner one. The Cache Valley and Northern Wasatch Front programs offer up to $5,000 and $6,875 respectively for vehicle replacements and both offer up to $1,000 for repair costs. Both are funded by the Utah Division of Air Quality through a federal Targeted Airshed Grant and are administered by their respective county health departments.
Last updated: November 2024
The Replace Your Ride encourages owners of older, high-polluting vehicles to switch to cleaner transportation options, including electric vehicles, electric bikes, and transit. The state’s Electric Vehicle (EV) Incentive provides financial incentives of up to $5,000 to low- and moderate income customers. The state’s MileageSmart state incentive program is now concluded.
Last updated: November 2024
Government Alternative Fuel Vehicle (AFV) Incentive: The Virginia Department of Mines, Minerals and Energy, in collaboration with the Virginia Department of Transportation, offers up to $10,000 to state agencies and local governments for the incremental cost of new or converted alternative fuel vehicles.
Last updated: November 2024
Tax Incentives:
The sale or lease of new or used passenger vehicles, light-duty trucks, and medium-duty passenger AFVs is exempt from the state retail sales and use tax at decreasing amounts from August 1, 2021 through July 31, 2025.
Buses, including transit and school, that are zero emission have their sales and use tax waived. The state has put $120 million into an EV Incentive Account for the Department of Commerce to administer an electric vehicle rebate program. The program will start in August 2024 with $45 million available in the first program window through May 2025. Certain passenger, light-duty vehicles, and trucks qualify for a reduction in sales and use tax if they use electricity or hydrogen and are under a certain price cap. Buses, including transit and school, that are zero emission have their sales and use tax waived as well as for the associated charging and refueling infrastructure. The tax incentives are in effect through June 2025
Rebates, vouchers, and grants (current budget cycle): The state has put $120 million into an EV Incentive Account for the Department of Commerce to administer an electric vehicle rebate program. The program will start in August 2024 with $45 million available in the first program window through May 2025.
There is $110 million appropriated to the state's Department of Transportation to start a new medium- and heavy-duty commercial truck zero-emission vehicle voucher program. This is on top of $55 million for electric school buses, $67 million for zero-emission transit buses, $6 million for electric car share projects, and roughly $10 million for drayage truck and utility truck demonstration projects.
Last updated: November 2024
No policy in place or proposed.
Last Reviewed: November 2024
No policy in place or proposed.
Last Reviewed: November 2024
No policy in place or proposed.
Last Reviewed: November 2024