- 1. California: $10,500
- 2. Colorado: $13,500
- 3. Connecticut: $10,500
- 4. Oklahoma: $100,000*
- 5. Maine: $8,000
One state will give you up to six figures back…with a catch.
Buying an electric car is a tricky business. You're still effectively an early adopter while infrastructure grows to accommodate the new kid on the block. While startups and legacy automakers jump on the EV bandwagon, they are not yet considered mainstream. However, whether you're buying an EV because it's good for the environment, you love new tech experiences, or you love the performance, the government is trying to help with attractive incentives to help lower the price of entry.
While there's much confusion around the $7,500 tax rebate for EVs in the USA, individual states and independent power suppliers are also coming to the party with exciting incentives. These are the five states offering the best deals on new EV ownership through various incentive options based on data from the US Department of Energy.
It's worth noting that the incentives below are accurate at the time of writing but may only apply to certain vehicles. These are best-case scenarios and are dependent on income, vehicle, locale, and more factors.
1. California: $10,500
California has been ahead of the curve in incentivizing EV purchasing and leasing and still remains one of the best states to live if you want to buy an EV. Over and above the federal tax rebate, the California Clean Vehicle Rebate Project offers between $1,000 and $7,500 back on the purchase or lease of a new zero-emission vehicle. There are various criteria one has to meet to be eligible, and the amount changes depending on the type of vehicle, although a full list is available here.
But you can get even more back, and if you live in the San Joaquin Valley, the San Joaquin Drive Clean Rebate Program could give you an extra $3,000 back on qualifying BEVs and hydrogen fuel-cell vehicles (FCEVs), for a total of $10,500.
Basically, living in California can save you up to $18,000 on your purchase of an EV, Including the federal tax rebate of $7,500.
Access to the carpool lane is also included across California, sweetening the deal further. Other incentives come from companies like Liberty Utilities, who may provide a $1,500 rebate on purchasing a Level 2 home charging station.
2. Colorado: $13,500
Starting this July, the state of Colorado is offering a tax credit of up to $5,000 on qualifying electric or plug-in hybrid vehicles, with this amount set to increase by up to $2,500 at the start of next year, the latter valid if your EV costs less than $35,000. But, if you're purchasing an electric truck, you could get even more, as heavy-duty electric trucks are eligible for up to $8,000 in EV tax credit.
Xcel Energy will offer a further $5,500 to income-qualified residents with household incomes equal to or below 60% of Colorado's median income that are enrolled in one of the state's financial assistance programs.
Beyond this, various utility companies will subsidize your charger installations at home, some covering 50% of your costs up to the value of $5,000.
3. Connecticut: $10,500
Buying an EV in Connecticut isn't going to bag you the biggest rebates and discounts, as the Connecticut Hydrogen and Electric Automobile Purchase Rebate Program (CHEAPR) will only provide up to $4,250 o EV buyers, $2,000 of which is only accessible if you participate in a state or federal income qualified program. But if you buy an FCEV, you get a standard $7,500 and an additional $2,000 if you're in one of the aforementioned programs, totaling $9,500 back on your fuel-cell EV purchase.
Norwich Public Utilities will offer a further $1,000 rebate for qualifying EV buyers, and a $1,000 rebate on the installation of a Level 2 residential charger, while Eversource will match the latter offer.
4. Oklahoma: $100,000*
Before you get too excited, you're not going to get a six-figure tax rebate from the state of Oklahoma for just any EV – it would have to have a Gross Vehicle Weight Rating (GVWR) of greater than 26,501 lbs. However, EVs with a GVWR under 6,000 lbs are potentially eligible for a one-time tax rebate of $5,500, while those between 6,001 lbs and 10,000 lbs may be eligible for $9,000. For GVWR alternative fuel vehicles with a GVWR between 10,001 and 26,500 lbs, that figure jumps to $26,000.
Most vehicles fall within the smallest two categories, here.
The rebates from utility companies are lower in OK than elsewhere, as you can only get up to $250 back from the Public Service Company of Oklahoma to install a Level 2 charging station.
5. Maine: $8,000
If you live in the state of Maine, you can get between $500 and $7,500 back on a new battery electric vehicle and up to $3,000 back on a plug-in hybrid, while used BEVs and PHEVs are eligible for up to $2,500.
But you might get back a little more if you're buying an , with the state offering up to $8,000 for a limited time and limited to the first 50 qualifying work vans purchased in the state.
Keyword: 5 Best States For Electric Vehicle Incentives