What incentives do you get for switching to electric?
Incentives for Plug-in Hybrids and Electric Cars
By Brad Berman · April 22, 2019
(For more states and information visit source https://www.plugincars.com/federal-and-local-incentives-plug-hybrids-and-electric-cars.html)
We’re doing our best to track the growing list of federal and state-based incentives for purchasing an electric car or plug-in hybrid. See how much you can save to get behind the wheel of an electric-drive plug-in vehicle. Help us keep the list up-to-date by letting us know if you have info about new or changing incentives.
New Plug-in Car Purchases
Buyers of plug-in hybrids and electric cars benefit from a tax credit of $2,500 to $7,500, depending on the size of the battery in the car. On the low end of the spectrum, cars with 4 kWh battery packs will qualify for a $2,500 tax credit. The credit maxes out at $7,500 for cars with a 16 kWh battery pack. Every pure EV on the market today qualifies. The credits were provided as part of the American Recovery and Reinvestment Act, otherwise known as the “stimulus bill.” The incentive begins phasing out after an automaker sells 200,000 vehicles that are eligible for the credit. Tesla and Chevrolet have passed this level of sales so expect a smaller incentive on a purchase of their vehicles.
Utilities: Rebates and Better Electricity Rates
Many electric utilities around the country offer special rates, including time-of-use (TOU) rates, to reduce the cost of powering an electric car or plug-in hybrid. The reduced EV rate can significantly reduce the cost of charging your car. Check with your local utility company for exact rates and other details.
Southern California Edison, which provides electricity to 14 million people, now offers a $1,00 Clean Fuel Reward to customers who drive plug-in vehicles. (You get $1000 if you purchased or leased your car on or after January 1, 2019. You can still receive a $450 rebate if you purchased or leased your vehicle before 2019. There are additional incentives for installing a home charging station.) Other states such as Georgia and Florida, have offered perks and special rates for years—but the new SCE incentive makes second and third owners of a vehicle eligible for the payment.
PG&E customers with EVs are eligible to receive a $800 Clean Fuel Rebate for their use of electricity as a clean transportation fuel.
Discounts on Insurance
Several major insurance companies, such as Farmers, offer discounts of 5 percent or more for owners of electric and hybrid cars. Inquire with your insurance agent for details. We will continue to investigate which companies offer the best rates for EV owners and will post to this page.
Federal incentives for home charging stations expired at the end of 2017. However, many states offer individual EV buyers and businesses a credit for the purchase and costs of charging equipment.
In July 2017, the Oregon House approved a $5.3 billion, 10-year transportation funding package (HB 2017), which includes plug-in vehicle incentives. Rebates for qualifying vehicles are set annually by the department as follows: (a) For light-duty zero-emission vehicles and plug-in hybrid electric vehicles with an electrochemical energy storage capacity of 10 kilowatt-hours or more, up to $2,500 but not less than $1,500. (b) For light-duty zero-emission vehicles or plug-in hybrid electric vehicles with an electrochemical energy storage capacity of fewer than 10 kilowatt-hours, up to $1,500 but not less than $750.
To be eligible for a rebate, a person requesting a rebate under the program must purchase or lease a qualifying vehicle. A lease must have a minimum term of 24 months; provide proof of an intent to use the qualifying vehicle primarily on the public highways of this state, which may be satisfied by providing proof of registration of the qualifying vehicle in Oregon; submit an application for a rebate to the administrator of the program within six months after the date of purchase of the qualifying vehicle or six months after the date the lease of the qualifying vehicle begins.
See Oregon.gov’s page, “Zero Emission Vehicle Rebate Program.”
EV and qualifying plug-in hybrids are eligible for a sales tax exemption for the purchase or lease of the vehicle. The exemption is available until July 1, 2019. Businesses are eligible to receive tax credits on a first-come, first-serve basis up to 50% of the incremental cost of the EV. The maximum commercial tax credit is based on the weight rating of the vehicle.
Washington businesses are eligible to receive tax credits for purchasing new alternative fuel commercial vehicles, including electric cars.
EVs, which are exempt from emissions testing, are subject to an annual $100 registration fee.
Puget Sound Energy offers a $500 rebate to customers to purchase and install qualified Level 2 chargers.
The Clean Vehicle Rebate Project (CVRP) offers rebates for the purchase or lease of qualified vehicles. The rebates offer up to $2,500 for light-duty zero emission and plug-in hybrid vehicles that the California Air Resources Board (ARB) has approved or certified. The rebates are available on a first-come, first-served basis to individuals, business owners, and government entities in California that purchase or lease new eligible vehicles. In periods when funding exceeds current budgets, waiting lists can form.
The rules and funding amounts are subject to change. For more information, including a list of eligible vehicles and other requirements, see the CVRP website.
California’s Clean Vehicle Assistance Program provides grants and affordable financing to help low-income Californians purchase a new or used hybrid or electric vehicle. Its goal is to make clean vehicles accessible and affordable to all who qualify. The maximum income for an individual is $48,560, with a scale that climbs to a max of $100,400 for a family of four or $169,520 for a family of eight people. Grants are for new or used clean vehicles. You can get a $2,500 grant for a hybrid vehicle or a $5,000 grant for a plug-in hybrid or electric vehicle. Battery electric vehicles can also include a charging unit and its home installation. For more information, visit https://cleanvehiclegrants.org.
For public agencies, the Bay Area Air Quality Management District’s (Air District) PEV Rebate Program provides funding through vouchers that are issued in these amounts: (1) $2,500 per light-duty zero-emission vehicles, including battery electric and hydrogen electric vehicles; (2) $1,000 per light-duty plug-in hybrid electric vehicles; (3) $500 per zero-emission neighborhood electric vehicles; and (4) $2,500 per zero-emission motorcycles. Vouchers may be redeemed on a reimbursement basis and must be issued prior to the purchase or lease of vehicles. For more information: http://www.baaqmd.gov/Divisions/Strategic-Incentives/On-Road-Vehicles/Pu…
Carpool lane stickers:
The California DMV issued Red decals in 2018 to first-time applications for qualifying vehicles. The Red decal will expire January 1, 2022. The California DMV is now also issuing Red decals to vehicles originally issued a Green or White decal on or after January 1, 2017. In late 2018, all eligible vehicle owners were mailed a pre-filled CAV decal application form with instructions and a return envelope from DMV. The pre-filled applications were mailed by the California DMV, to the vehicle owners address on file. If you believe your vehicle is eligible for a new Red decal and you did not receive a letter from DMV, please submit a completed CAV decal application form (REG 1000) to DMV for review.
If your vehicle was originally issued White or Green decals prior to 2017, your vehicle is no longer eligible for any CAV decal programs and is no longer be eligible to participate in the CAV decal program after January 1, 2019.
Assembly Bill 544 established a new Clean Air Vehicle (CAV) decal program for 2019. This decal will continue to allow eligible single-occupant vehicles into carpool lanes. The vehicle eligibility requirements for the new decal are similar to those used for the Red, White, and Green decal programs. Purple decals are valid until January 1, 2023. Red decals are valid until January 1, 2022.
Green and White decals expired at the end of 2018. Qualifying vehicles originally issued a Green or White decal in 2017 or 2018 are eligible to apply for a Red decal (expiring January 1, 2022). If you believe your vehicle is eligible for a Red decal, and you did not receive a pre-filled CAV decal application form with instructions and a return envelope from DMV, please submit a completed Clean Air Vehicle decal application form (REG 1000) to DMV for review.
If your vehicle was originally issued White or Green decals prior to 2017, your vehicle is no longer eligible for Clean Air vehicle decals and can no longer use high-occupancy vehicle lanes without the full required number of passengers. You may check if a vehicle was issued a decal prior to 2017 on DMV’s website.
All new decals issued under this program expire on January 1 of the fourth year after the year in which they were issued. This provides an access period of three full years plus the partial year from when the decal was issued. For example, if a decal was issued anytime in 2019, it expires January 1, 2023. Please note that this program will end, and any remaining valid decals will expire on September 30, 2025.
Get more information about clean air vehicle decals via the California DMV website.
Many utilities offer discounted rates for residential vehicle charging during off-peak hours, including PG&E, Los Angeles Department of Water and Power, SDG&E, Riverside Public Utilities, and others.
Southern California Edison in May 2017 started offering a $1,000 reward to customers who drive plug-in vehicles, including to second and third owners of an eligible vehicle. Each plug-in vehicle, identified by its VIN, can qualify for the Clean Fuel Rebate up to three times over its lifetime, but only after a change of possession (i.e., new owner or lessee, as applicable). Each household may receive the Clean Fuel Rebate only one time for an EV, but if you transfer ownership, the new owner (or lessee, if applicable) will qualify for a rebate as long as the new owner or lessee meets the other eligibility requirements and the vehicle has not reached the maximum of three rebates associated with the EV. If you have multiple eligible EVs in your household, you may receive a rebate for each vehicle if you otherwise qualify. For a list of eligible vehicles and other details, visit Southern California Edison’s website about its Clean Fuel Rewards Program.
PG&E customers with EVs are eligible to receive a $800 Clean Fuel Rebate for their use of electricity as a clean transportation fuel. You must be a PG&E customer with an active residential electric account. As the account holder, you may also apply on behalf of an EV owner in your household (or tenant in a multifamily household) with the vehicle owner’s permission.You must own or lease an eligible plug-in electric vehicle or have permission from the vehicle owner to submit the application.Your vehicle, identified by its unique vehicle identification number (VIN), must not have already received the Clean Fuel Rebate under the current owner or any previous owner. You must have paid the vehicle’s current registration fees and your vehicle must be registered in California to the address on your PG&E account. Learn more about PG&E’s Clean Fuel Rebate program.
The LA Department of Water and Power’s “Charge Up L.A.!” program offers residents a rebate of up to $500 toward charging equipment and installation. Visit the program website for more details.
Residential property owners may have access to Property-Assessed Clean Energy (PACE) financing to install EV supply equipment (EVSE), depending on if the local government has a PACE program in place. PACE financing allows property owners to borrow funds to pay for the EVSE, and repays the funds through a special assessment on the property over a defined time.
Sacramento offers free or discounted parking to individuals or small businesses certified by the city’s Office of Small Business Development that own or lease EVs with an EV parking pass in designated downtown parking garages and surface lots. Free EV charging is also provided in several parking garages.
Sacramento Municipal Utility District (SMUD) is offering residential customers either a $599 rebate or a free Level 2 charger for SMUD customers who purchase or lease an EV. Los Angeles Department of Water and Power’s Charge Up LA! The program offers a $500 rebate for the installation of an EV charger and an additional $250 and 2.5 cents/kWh rate discount with a separate meter TOU rate enrollment for purchases before June 30, 2018.
The City of Anaheim provides a $500 rebate and a city permit fee waiver for a level 2 charger installation.
Burbank Water and Power in Burbank, Calif., offers rebates on electric vehicle charging stations as follows: up to $500.00 for residential equipment and up to $1,000.00 for commercial stations. In addition, a discounted per kWh rate for use of public EV charging locations is set to $0.1744 for off-peak hours and $0.3053 during peak hours. See more information on incentives in Burbank.
The City of Colton also offers $500 for a Level 2 charger installation for either residential or commercial use.
Glendale offers a $500 rebate for the installation of a Level 2 charger and up to $2,000 for commercial or multi-family customers.
Pasadena Water & Power residential electric customers are eligible for up to a $250 rebate when they purchase or lease a new or used plug-in electric vehicle. Customers are allowed to receive incentives for up to two EVs per address every three years. Customers can receive an additional $250 bonus rebate (up to $500) if they purchase or lease an EV from a Pasadena auto dealer when an EV is purchased/leased after August 1, 2018. An additional $250 (up to $750) is available for customers currently participating in PWP’s income-qualifying programs when an EV is purchased/leased after August 1, 2018.
Residential electric customers are eligible for a $600 rebate when they install a qualifying “Wi-Fi enabled” EV charger at their home. Residential customers are eligible for a $200 rebate when they install a standard (Non-Wi-Fi) EV charger. Residential charger incentive rates listed above are as of August 1, 2018. Level 2 (240V) EV charging stations purchased prior to August 1, 2018, are eligible for a $400 rebate.