Today, virtually everyone understands that there are multiple benefits to owning an electric vehicle, both personally and for the environment. For personal reasons, fuel prices are skyrocketing around the world and more people now view travel as virtually unaffordable, especially if it is not a necessary one. When it comes to the bigger picture, we know how much of an impact the use of traditional vehicles has on the planet because of the emissions that flow out of them.
It is for the ladder reason that more states in the US are starting to offer some form of incentive to boost EV sales. There are still many skeptical people when it comes to purchasing an electric vehicle, but hopefully some of these great deals will help convince some. After all, with prices as they are, we think it’s a pretty safe bet that all else aside, most people would love to have the option to charge their vehicles rather than have to buy fuel at these uncertain market values.
One of the great things about electric vehicles today is that there are tons of options on the market. Sure, Tesla might be the biggest when it comes to strictly EVs, but these days pretty much every automaker has some form of EV. As an example, Chevy will unveil the new Blazer EV next month. This means you can get a sedan if you want, you can get an electric Mustang, and now there are even trucks and SUVs that are electric.
So, which states offer the best incentives for EV buyers, and in what form?
Reasons why people are skeptical about electric vehicles
People usually have qualms about what is new, or at least relatively new. This is fair, especially when it comes to cars, because while the technology behind EVs isn’t new, it’s still considered groundbreaking by most drivers. After all, only about one percent of the cars on the road are all-electric, according to Get Jerry. Those numbers are steadily rising, however, as sales of all-electric vehicles grew by 83% in 2020 and a positive change of 78% in hybrids.
Despite these positive changes, there are still logical fears. The biggest concern people have is due to the batteries. The battery in an EV is not like the one in your traditional Ford. Instead of being able to get a new one for $100 or so, there are reports of people spending thousands. However, it should be noted that the instances where a person needs to have the battery in their EV replaced are rare. We hear about those who are in the news not only because of the high price tag associated with the service, but also because it’s so rare.
What incentives are offered?
The first thing to keep in mind when it comes to government incentives for owning an electric vehicle are the: Federal tax credits for all-electric and plug-in hybrids. With this, all cars purchased new after 2010 that are all-electric or plug-in hybrid are eligible for a tax credit of up to $7,500. The amount of your specific tax benefit will depend on the capacity of the battery powering your vehicle. Please note that there are exceptions. It is striking that small neighborhood vehicles are not eligible. Also, changes can be made to the tax credit guidelines at any time, as happens with specific benefits from different states.
These are the states with the best incentives for EVs
There are a number of states that offer individual incentives for owning an EV in addition to the federal tax credit.
- New Jersey has an EV incentive program called Charge Up that now offers a sales tax exemption (it used to offer a discount, but ran out of funding). The tax benefit is between $2,500 and nearly $8,000, depending on the specific car. Find out more about the tax benefits for EVs in New Jersey here.
- California offers a $2,000 discount. This excludes brands like Tesla and Rivian due to their higher price. Find out more about which vehicles are eligible here.
- Colorado offers two separate benefits. For a. There is a $2,500 state tax credit from now through 2023, when it’s reduced to $2,000 through 2026. People with a leased EV are eligible for up to $1,500. Find more information here.
- Colorado also has a discount program called Xcel. This will give buyers $5,500 upfront for new electric vehicle purchases and $3,000 for used vehicles. The maximum prize to be eligible is $50,000.
- Connecticut also has a discount program. Below that, you can get up to $4,250 for a qualifying new all-electric vehicle and $2,250 for a plug-in hybrid. Fuel cell electric vehicles are eligible for up to $9,500. Find more information here.
- Massachusetts offers a $2,500 discount for all-electric vehicles and $1,500 for plug-in hybrids. Find more details here.
- New York has the Drive Clean program that offers discounts of up to $2,000. Find more information here.