Think electric vehicles are out of your budget? In the United States, there are several incentives and tax credits that could make your dream come true and bring your favorite EV within reach. First, the federal government has initiated an electrical vehicle tax credit which can reduce your tax bill by up to $7,500 for a new EV and up to $4,000 for used EVs (under IRC 30D).

The exact amount of this tax rebate depends on the battery capacity of the EV you buy and the sales volume of that manufacturer. For example, a new EV by automakers like Lucid and Rivian will still qualify for a full tax rebate but bigger companies like Tesla and GM have phased out all the federal tax credits.

Several states now also offer additional incentives to encourage the use of electric cars and often combine them with federal tax credits. In California, the low-income families who meet the set eligibility criteria are offered up to $4,500 under the Clean Vehicle Rebate Program (CVRP) when they purchase or lease an electric car. Colorado offers an additional sales tax credit of up to $2,500 if you buy an EV.

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In New York, eligible EV purchases can get the buyers up to $2,000 under the Drive Clean Rebate program. Some cities like Austin, Texas, offer their own bonuses and incentives like tax rebates if you install an EV charging station at home. These local programs can lower the cost of EVs even further. Canadian small business owners can even deduct the complete cost of an eligible electric vehicle as tax rebate. However, as a pre-requisite, the purchase price of the EV shouldn’t exceed $55,000.

In addition to all such financial incentives, many states and cities offer non-monetary incentives like discounted or free parking, lower toll rates etc. that eventually add to the value of EVs. In Virginia, the electric vehicles with a Virginia Clean Special Fuel plate are allowed to occupy the High Occupancy Vehicle (HOV) Lane themselves.

Utility companies across the country have also jumped into the EV business and now offer various discounts and rebates. For example, Georgia Power provides a $250 rebate if you purchase and install a Level 2 charging station at home.

Ready to make the switch? Browse our top-rated low price EVs right now.