Find EV Incentives

Electric Vehicle Incentives

While there are may reasons that making the switch to an electric car makes sense, one of the primary reasons is that EVs can help you save money. Over time, you could save thousands on fueling costs, because electricity is substantially cheaper and more price-stable than gasoline when you charge at home, and EV maintenance should also cost a lot less, outside of wear-and-tear items like tires.

In addition to lower running costs, you can also save a lot on an EV at the time of purchase. Federal, state, and local authorities offer a variety of financial incentives to drivers ready to make the switch – which can help offset the generally higher starting MSRPs of electric vehicles compared to gas cars.

EV Incentives From the Federal Government

One of the best-known incentives comes from the federal government, which offers qualifying drivers up to $7,500 off the MSRP of eligible vehicles. In 2024, vehicles must be made in North America and source the majority of their battery components and minerals from countries that have free trade agreements with the U.S. to qualify for the full incentive – making the list of eligible vehicles shorter than it has been in the past. However, if you lease an electric or plug-in hybrid vehicle, instead of purchasing it outright, you can receive the full $7,500 incentive – for now.

There is even a federal tax incentive of up to $4,000 for used electric vehicles and plug-in hybrids priced under $25,000. Qualifying buyers are eligible for up to $4,000, and there are no restrictions on country of manufacture or battery components.

There are several restrictions to take into account with the federal incentive, both for new and used cars. Income caps are in place, and there are restrictions on vehicle MSRP, making some higher-priced luxury EVs ineligible for the incentive, regardless of where they are manufactured.

In 2024, licensed car dealers can now apply for the tax incentive on behalf of the customer, which means you get the savings as a price cut at the time you purchase the vehicle – instead of having to wait until tax time. It’s a win-win.

Additional EV Incentives

While there are may reasons that making the switch to an electric car makes sense, one of the primary reasons is that EVs can help you save money. Over time, you could save thousands on fueling costs, because electricity is substantially cheaper and more price-stable than gasoline when you charge at home, and EV maintenance should also cost a lot less, outside of wear-and-tear items like tires.

In addition to lower running costs, you can also save a lot on an EV at the time of purchase. Federal, state, and local authorities offer a variety of financial incentives to drivers ready to make the switch – which can help offset the generally higher starting MSRPs of electric vehicles compared to gas cars.