EV Federal Tax Incentives List
The following list are the federal tax incentives, credits, and rebates available for the purchase of electric vechicles and associated charging equipment (EVSE).
Advanced Technology Vehicle (ATV) and Alternative Fuel Infrastructure Manufacturing Incentives
Through the Advanced Technology Vehicles Manufacturing Loan Program, manufacturers may be eligible for direct loans for up to 30% of the cost of re-equipping, expanding, or establishing manufacturing facilities in the United States used to produce qualified ATVs, ATV components, or alternative fuel infrastructure, including associated hardware and software. Qualified ATVs are light-duty or ultra-efficient vehicles that meet specified federal emission standards and fuel economy requirements. Ultra-efficient vehicles are fully closed compartment vehicles, designed to carry at least two adult passengers, which achieve at least 75 miles per gallon while operating on gasoline or diesel fuel, as hybrid electric vehicles operating on gasoline or diesel fuel, or as fully electric vehicles. Qualified components must be designed for ATVs and installed for the purpose of meeting ATV performance requirements, as determined by the U.S. Department of Energy.
For more information, see the Advanced Technology Vehicles Manufacturing Loan Program websitehttps://www.energy.gov/lpo/title-xvii/products-services/advanced-technology-vehicles-manufacturing-loan-program
Airport Zero Emission Vehicle (ZEV) and Infrastructure Incentives
The Zero Emissions Airport Vehicle and Infrastructure Pilot Program provides funding to airports for up to 50% of the cost to acquire ZEVs and install or modify supporting infrastructure for acquired vehicles. Grant funding must be used for airport-owned, on-road vehicles used exclusively for airport purposes. Vehicles and infrastructure must meet the Federal Aviation Administration's Airport Improvement Program requirements, including Buy American requirements. To be eligible, an airport must be for public use. The program will give priority to applicants located in nonattainment areas, as defined by the Clean Air Act, and projects that achieve the greatest air quality benefits, as measured by the amount of emissions reduced per dollar of funds spent under the program.
For more information, see the Zero Emissions Airport Vehicle and Infrastructure Pilot Program website.https://www.faa.gov/airports/environmental/zero_emissions_vehicles/
Electric charging equipment tax credit (up to 30K business | 1K consumer)
Alternative Fuel Infrastructure Tax Credit
Fueling equipment for natural gas, propane, liquefied hydrogen, electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel installed through December 31, 2020, is eligible for a tax credit of 30% of the cost, not to exceed $30,000. Permitting and inspection fees are not included in covered expenses. Fueling station owners who install qualified equipment at multiple sites are allowed to use the credit towards each location. Consumers who purchase qualified residential fueling equipment prior to December 31, 2020, may receive a tax credit of up to $1,000. Unused credits that qualify as general business tax credits, as defined by the Internal Revenue Service (IRS), may be carried backward one year and carried forward 20 years. For more information about claiming the credit, see IRS Form 8911, which is available on the IRS Forms and Publications website.
Electric Car Tax Credit
Qualified Plug-In Electric Vehicle (PEV) Tax Credit
A tax credit is available for the purchase of a new qualified PEV that draws propulsion using a traction battery that has at least five kilowatt-hours (kWh) of capacity, uses an external source of energy to recharge the battery, has a gross vehicle weight rating of up to 14,000 pounds, and meets specified emission standards. The minimum credit amount is $2,500, and the credit may be up to $7,500, based on each vehicle's traction battery capacity and the gross vehicle weight rating. The credit will begin to be phased out for each manufacturer in the second quarter following the calendar quarter in which a minimum of 200,000 qualified PEVs have been sold by that manufacturer for use in the United States. This tax credit applies to vehicles acquired after December 31, 2009. For more information, including qualifying vehicles and sales by manufacturer, see the Internal Revenue Service (IRS) PEV Credit website. Also refer to IRS Form 8936.https://www.irs.gov/businesses/plug-in-electric-vehicle-credit-irc-30-and-irc-30d
Electric Vehicle Charging on Federal Property
The U.S. General Services Administration (GSA) or any federal agency may install electric vehicle supply equipment (EVSE) for federal employees and others authorized to park at federal facilities to charge their privately owned vehicles. Employees and other users must pay to reimburse federal agencies for the EVSE procurement, installation, and use. Federal agencies may provide EVSE through a contract with a vendor. GSA must submit a report to Congress by December 2018, and annually thereafter for 10 years, on the number of EVSE installed by GSA, the number of EVSE installation requests from other federal agencies, and the status of requests for EVSE from other federal agencies.
National Alternative Fuels Corridors
The U.S. Department of Transportation (DOT) has designated national plug-in electric vehicle charging and hydrogen, propane, and natural gas fueling corridors in strategic locations along major highways to improve the mobility of alternative fuel vehicles. To designate the corridors, DOT solicited nominations from state and local officials and worked with industry stakeholders. Within five years of the establishment of the corridors, and every five years thereafter, DOT will update and redesignate the corridors. During the designation and redesignation process, DOT will issue a report identifying charging and fueling infrastructure, analyzing standardization needs for fuel providers and purchasers, and reestablishing the goal of achieving strategic deployment of fueling infrastructure in the designated corridors by the end of 2020. For more information, see the DOT Alternative Fuel Corridors website.
Voluntary Airport Low Emission (VALE) Program
The goal of the VALE Program is to reduce ground level emissions at commercial service airports located in designated ozone and carbon monoxide air quality nonattainment and maintenance areas. The VALE Program provides funding through the Airport Improvement Program and the Passenger Facility Charges program for the purchase of low emission vehicles, development of fueling and recharging stations, implementing gate electrification, and other airport air quality improvements. For more information, see the VALE Program website.
The U.S. Environmental Protection Agency's (EPA) Ports Initiative is an incentive-based program designed to reduce emissions by encouraging port authorities and terminal operators to retrofit and replace older diesel engines with new technologies and use cleaner fuels. EPA's National Clean Diesel Campaign offers funding to port authorities and public entities to help them overcome barriers that impede the adoption of cleaner diesel technologies and strategies. For more information, see the Ports Initiative website
Clean Agriculture is a voluntary program that promotes the reduction of diesel exhaust emissions from agricultural equipment and vehicles by encouraging proper operations and maintenance by farmers, ranchers, and agribusinesses, use of emissions-reducing technologies, and use of cleaner fuels. Clean Agriculture is part of the U.S. Environmental Protection Agency's National Clean Diesel Campaign, which offers funding for clean diesel agricultural equipment projects. For more information, see the Clean Agriculture website.
Clean Cities Coalition Network
The mission of Clean Cities Coalition Network is to foster the economic, environmental, and energy security of the United States by working locally to advance affordable, domestic transportation fuels and technologies. Nearly 100 volunteer coalitions carry out this mission by developing public/private partnerships to promote alternative and renewable fuels, idle-reduction measures, fuel economy, improvements, and emerging transportation technologies. The Clean Cities Coalition Network provides information about financial opportunities, coordinates technical assistance projects, updates and maintains databases and websites, and publishes technical and informational materials. For more information, see the Clean Cities Coalition Network website.
Clean Construction is a voluntary program that promotes the reduction of diesel exhaust emissions from construction equipment and vehicles by encouraging proper operations and maintenance, use of emissions-reducing technologies, and use of cleaner fuels. Clean Construction is part of the U.S. Environmental Protection Agency's National Clean Diesel Campaign, which offers funding for clean diesel construction equipment projects. For more information, see the Clean Construction website.
Clean School Bus
Clean School Bus is a public-private partnership that focuses on reducing children's exposure to harmful diesel exhaust by limiting school bus idling, implementing pollution reduction technologies, improving route logistics, and switching to clean fuels. Clean School Bus is part of the U.S. Environmental Protection Agency's National Clean Diesel Campaign and provides funding for projects designed to retrofit and/or replace older diesel school buses. Eligible applicants are school districts, state and local government programs, federally recognized Indian tribes, and non-profit organizations. For more information, see the Clean School Bus website.
Automakers earn credits by selling zero emission (ZEV) cars and trucks. The credit per vehicle varies with drivetrain type and electric range. From 2018 onwards, plug-in hybrids, which only partially drive on electricity receive between 0.4 and 1.3 credits per vehicle sold. Battery electric and fuel cell vehicles receive between 1 and 4 credits, based on range.
The current ZEV states are: California, Connecticut, Colorado, Hawaii, Maine, Maryland, Massachusetts, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, and Washington.
Buildings can get one LEED point for green vehicles by accomplishing two requirements. The first is the preferred parking requirement: 5 percent of all parking spaces should be reserved for green vehicles only. These spaces should be evenly dispersed among various sections of the parking lot, such as having half in short-term parking and half in long-term parking. Alternatively, projects can choose to offer a 20 percent parking discount to green vehicles in lieu of dedicating 5 percent of spaces to them. Information about the discount should be easily seen and consistently available.
For the parking spaces equipped with EVSE to qualify for the green vehicle point, the charging station must provide a Level 2 charging capacity or greater. That means it must have a minimum capacity of 208 volts. Additionally, the equipment must be connected so it's able to participate in a demand-response program. This should encourage people to charge their vehicles during off-peak hours, which will lower the price of charging.