States That Tax and Incentivize EVs

The rise in popularity of electric vehicles has been meteoric—they now stand at the forefront of automotive innovation leaving law-makers playing catch-up. And in the dance of progress and policy, not all states in the union agree on the tune. In this article we’ll give you the lowdown on which states tax, incentivize, or strike a balance on EV policy.


States That Tax EVs

Progress comes at a price, and some states ensure that EV owners contribute to the roadways they drive on. Here are a few states that have decided EVs should pay the price of early adoption on their annual registration fee:

  1. Georgia: In Georgia, driving an EV means adding around $210/year (for non-commercial vehicles) to your annual registration.

  2. North Carolina: The Tar Heel State follows suit, imposing an additional fee of $180/year on EVs.

  3. Michigan: The Motor City’s state ensures EVs contribute with an Electric Vehicle Fee of $140/year tacked onto their registration (or $240 for vehicles that weigh 8,000 lbs or more).

  4. Ohio: Ohio also imposes a tax code on EVs, tacking an additional $200 to the annual registration fee.

States That Offer EV Incentives

On the flip side, some states roll out benefits for EV owners, offering a range of incentives to make the switch even smoother:

  1. California: The Golden State leads the EV charge with the Clean Vehicle Rebate Project (CVRP), dishing out rebates of up to $7,000 and granting HOV lane access for EVs.

  2. New York: New York’s Drive Clean Rebate offers up to $2,000 for new EV purchases with additional incentives depending on locality.

  3. Colorado: New EV purchases or leases in Colorado are incentivized by a generous state tax credit of up to $5,000.

  4. New Jersey: The Charge Up New Jersey program offers a rebate of $25/mile of battery range, up to $4,000.

States That Do Both

Some states understand that balance is key, imposing taxes on EVs while also offering incentives for driving adoption. These states benefit from driving cleaner energy practices while building state infrastructure from annual taxes:

  1. Washington: Washington charges an annual EV registration fee of $150, but balances it with a generous rebate of up to $9,000 on new EV purchases.

  2. Virginia: Virginia blends an annual fee of $116.49 with a state tax credit of $2,500.

  3. Oregon: Oregon hits the sweet spot with an annual EV fee of $150 paired with a rebate of up to $5,000 depending on household status from the Oregon Clean Vehicle Rebate Program.

Making the Best Decision for Your EV Purchase

Whew, we know that was a lot of numbers, but leveraging the landscape of EV policies to your advantage means you need the relevant information and a keen eye for detail. In addition to state fees and incentives, here’s some more info how you can make the smartest choice:

Why and How to Convert a Car to Electric

Converting a conventional car to an electric one is a project with the potential to save you tons of money. Swapping out your internal combustion engine for an electric motor and battery pack doesn’t only mean you’ve got a custom EV that’s uniquely yours, but also that you may qualify for state rebates worth thousands of dollars. Here’s a price breakdown on how much it could cost you to convert your car.

The EV Tax Incentives in California

California is the pinnacle of automotive society in terms of buying and registering a vehicle—particularly an electric one. California doesn’t just want you to drive electric; it wants to reward you for it. The Clean Vehicle Rebate Project (CVRP) offers up to $4,500 for eligible EVs, with additional perks for low-income residents from the California Air Resources Board (CARB).

Installing an EV Charger at Home: Tax Credits & Incentives

Home is where the charge is. Installing an EV charger at home can come with a federal tax credit of up to 30% of the original cost, capped at $1,000 for residential properties. Some states throw in extra incentives to make the installation more palatable, so be sure to check what your local government has on offer.

Understanding the policies in your state equips you with the power to make a decision that maximizes your benefits. Whether you’re eyeing tax incentives, crunching the numbers on annual fees, or exploring conversion and charging options, having the right information ensures you’re always a step ahead in the game of electric vehicle ownership.

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