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Ben Luthi has been writing about personal finance for over a decade with the intent to help people improve their finances and lifestyle. He’s covered just about every personal finance topic under the sun for a variety of publications, including the Wall Street Journal, Fortune Recommends, Yahoo Finance, Experian, Credit Karma, NerdWallet, and many more. Ben lives near Salt Lake City with his two kids and two cats.
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Becky Helzer is an editor at Insurify. She loves helping writers express their ideas clearly and authentically. With a diverse background in editing everything from curriculum and books to magazine articles and blog posts, she’s worked on topics ranging from home finance, insurance, and cloud computing to the best tools for home improvement.
A proud graduate of Colorado State University with a degree in technical journalism, Becky lives in Fort Collins, CO, with her husband and their two spoiled rescue dogs.
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969
MacKenzie Korris is an insurance copy editor with a producer’s license for property and casualty insurance in Missouri.
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Table of contents
Electric vehicle (EV) rebates are financial incentives that reduce the cost of buying or leasing an EV. These can come from state governments, local municipalities, or utility providers.
Federal EV tax credits for new and used electric vehicles ended on Sept. 30, 2025, due to changes in federal tax legislation.[1] But several states still offer rebates, tax credits, and charging incentives. Your eligibility depends on where you live and the type of EV you buy.
Here’s what you need to know, whether you’re planning to drive an electric car or just considering it. We’ve listed major programs by state so you can see what’s available and how EV incentives work.
How EV rebates and incentives work
EV rebates lower the up-front or long-term cost of owning an electric vehicle. Depending on the program, you may receive a cash rebate, tax credit, bill credit, or discounted electricity rate. These incentives come from state agencies, environmental programs, and local utility companies to encourage EV adoption and reduce emissions.
Common types of incentives include:
Point-of-sale rebates: These reduce the purchase or lease price at the dealership.
Post-purchase rebates: You pay full price, then apply to receive a check or bill credit after approval.
State tax exemptions: These reduce the amount of state income tax you owe for the year you purchased the EV.
Utility incentives: Some utilities offer discounted time-of-use charging rates, rebates for home charger installation, or bill credits for EV ownership.
Eligibility varies by program. You may need to meet specific income or vehicle manufacturer’s suggested retail price (MSRP) limits, purchase a particular EV type, reside within the state, or buy from a participating dealer. If you install a charger at your home, you’ll typically need to submit a separate utility application.
EV rebates and incentives by state
EV incentives differ widely across the country. Some states, like California, New York, New Jersey, Colorado, and Massachusetts, offer generous rebates or tax credits. Others focus mainly on utility programs — and a few have no EV incentives at all.
Below is a state-by-state list highlighting rebates, tax credits, special electricity rates, and incentives for charger installation. Because programs change frequently, always confirm availability and eligibility directly with your state or utility provider before purchasing an EV.
State | Electric Vehicle Incentive |
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| Wyoming |
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Notable state EV rebate programs
Several states offer standout EV rebate programs that can significantly reduce the cost of switching to an electric vehicle. Below are some of those programs, including what they offer, who qualifies, and how to apply.
California Clean Cars 4 All program
California’s Clean Cars 4 All program helps low-income residents replace older, high-polluting vehicles with new or used electric vehicles. Incentives vary by air district and can include grants for EV purchase, home charger assistance, and transit incentives.
In total, you can qualify for up to $12,000 in incentives.
To qualify, you need to meet certain income limits, live in specific air districts, and have an eligible vehicle to scrap.[2]
Colorado EV tax credit
Colorado offers a state tax credit for purchasing or leasing a qualifying new or used EV. In 2025, you can get a $3,500 tax credit if you buy or lease a new EV with a manufacturer’s suggested retail price (MSRP) up to $80,000.
If your new EV has an MSRP of up to $35,000, you can get an additional $2,500 tax credit.
In 2026, the base tax credit drops to $750, but the additional $2,500 credit for buying a lower-cost EV won’t change.[3]
To claim the credit, include the necessary details in your tax return.
New Jersey Charge Up program
The Charge Up New Jersey program provides a point-of-sale rebate to eligible residents of up to $4,000 on new electric vehicles under a specified MSRP cap. You can also get a $250 rebate if you purchase a qualifying charger.[4]
The primary rebate is applied directly at the dealership, which reduces the up-front cost. Funding is limited, and the highest rebates apply to low-income buyers.
No application is necessary for the point-of-sale rebate. Simply buy or lease from an eligible dealer. You can apply through the Charge Up New Jersey website to get a rebate for a charger.
New Mexico rebate program
The Public Service Company of New Mexico (PNM) offers a rebate to income-eligible buyers. You can get up to $4,000 off when you shop at a participating dealer and buy or lease a new or used EV priced less than $55,000.[5]
New York Drive Clean Rebate
New York’s Drive Clean Rebate offers up to $2,000 off at the point of purchase (or lease) for more than 60 new EV models. Participating dealers apply the rebate at the point of sale, with the EV’s electric range determining the amount.[6]
To qualify for this rebate, vehicles must be new, purchased in New York State, and meet the state’s electric range thresholds.
Who qualifies for EV rebates?
Eligibility rules differ by state, but most EV rebate programs follow similar guidelines. Some states prioritize incentives for low- or moderate-income households, while others limit rebates based on the type of EV you buy or its price.
Common requirements include:
State residency
MSRP or vehicle price caps
New versus used EV eligibility rules
Purchasing from a participating dealer (for point-of-sale rebates)
Household income limits (some programs prioritize low- to moderate-income households)
Certain programs may also have in-state vehicle registration requirements or a minimum-length ownership period. Since many rebates are first-come, first-served or have funding limits, confirm your eligibility and the rebate’s availability before you buy an EV.
How to claim EV rebates
The process for claiming an EV rebate varies by state. It may also depend on whether the incentive is offered at the point of sale or after purchase.
Some programs apply the discount directly at the dealership, while others require you to submit an online application with supporting documents.
Follow these general steps:
Verify eligibility before purchasing your EV.
Buy or lease a qualifying vehicle from a participating dealer (if required).
Submit required documents, such as the sales contract, registration, and proof of residency.
Apply as soon as possible, since many programs have limited funding and close once money runs out.
Wait for program approval and payment if the rebate is issued after purchase.
If you plan to install a home charger, note that utility rebates often require a separate application and may have additional documentation requirements.
EV rebates by state FAQs
EV rebates can be confusing, especially with ever-changing federal and state programs. See the answers to frequently asked questions below about current incentive options.
What happened to the federal EV tax credit?
The federal tax credit for new and used electric vehicles through the Department of Energy expired on Sept. 30, 2025, due to legislative changes.
What states have the most EV incentives?
Connecticut, Illinois, Maine, Massachusetts, and New Jersey all offer rebates of $4,000 or more when you buy or lease a qualifying electric car and follow program requirements. Depending on the program, the car may be new or used.
Do used EVs qualify for rebates?
It depends. While some state programs include both new and used EVs in their eligibility criteria, others offer benefits only for new EV buyers.
Do plug-in hybrids qualify for tax credits?
Many state programs include plug-in hybrids, but rebate amounts may be lower than for full battery electric vehicles.
How long do you have to apply for a rebate?
Application deadlines vary, so it’s important to fully understand your state’s program requirements to avoid missing out on the benefit. Some programs may also have limited funding, so if the money runs out, you may not receive the rebate.
What happens if your state rebate program runs out of funds?
If funding is exhausted, applications may be waitlisted or denied. Some states reopen programs when new funding is approved.
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Sources
- IRS. "Clean vehicle tax credits."
- California Air Resources Board. "Clean Cars 4 All."
- Colorado Energy Office. "Colorado’s Electric Vehicle Tax Credits."
- Charge Up New Jersey. "Charge Up New Jersey."
- PNM. "Making Electrifying Your Ride More Affordable."
- NYSERDA. "Drive Clean Rebate for Electric Cars."
)
Ben Luthi has been writing about personal finance for over a decade with the intent to help people improve their finances and lifestyle. He’s covered just about every personal finance topic under the sun for a variety of publications, including the Wall Street Journal, Fortune Recommends, Yahoo Finance, Experian, Credit Karma, NerdWallet, and many more. Ben lives near Salt Lake City with his two kids and two cats.
)
Becky Helzer is an editor at Insurify. She loves helping writers express their ideas clearly and authentically. With a diverse background in editing everything from curriculum and books to magazine articles and blog posts, she’s worked on topics ranging from home finance, insurance, and cloud computing to the best tools for home improvement.
A proud graduate of Colorado State University with a degree in technical journalism, Becky lives in Fort Collins, CO, with her husband and their two spoiled rescue dogs.
Licensed property and casualty insurance agent
10+ years editing experience
NPN: 21630969
MacKenzie Korris is an insurance copy editor with a producer’s license for property and casualty insurance in Missouri.
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)