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10 States Where Driving an EV Is Cheaper in 2024

coldsnowstorm / iStock.com

coldsnowstorm / iStock.com

If you’re thinking about buying a new car in 2024, there’s a good chance you’re considering an EV. Electric vehicles were once considered too expensive for the average driver, but increased availability and federal rebates have made EVs more accessible than ever before. As a bonus, some states offer incentives to make driving an EV even cheaper.

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This guide will review 10 states with the best EV tax incentive programs. From scenic Oregon to fast-paced New York, these state programs make buying an electric car a budget-friendly choice.

alfexe / Getty Images/iStockphoto

alfexe / Getty Images/iStockphoto

How Tax Incentives Make Driving an EV Cheaper

You might have already heard of federal EV tax credits. In 2024, you can get up to $7,500 upfront when you purchase a new EV or other low-emission vehicle. State government EV incentive programs are also enticing. Some states offer discounts upfront at the dealership, while others offer them in the form of tax credits.

But what is a tax credit, exactly? A tax credit, or tax rebate, is a dollar-for-dollar amount you can claim on your tax refund to lower the total amount you owe. Federal, state and local governments offer tax rebates to encourage U.S. taxpayers to participate in certain programs that stimulate the economy or offer other benefits.

Tax incentives for EVs essentially offer a discount on your new car. Qualifications vary by state, but incentives generally apply to electric battery vehicles, fuel cell electric vehicles and plug-in hybrids. Your maximum incentive might vary, depending on your income level and the manufacturer’s suggested retail price of your new car.

Some states also offer incentives for leasing an EV, so you can still enjoy the benefits if you’re not ready to buy.

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Marcus Lindstrom / iStock.com

Marcus Lindstrom / iStock.com

Top 10 States With EV Tax Incentives

So, where is it cheapest to buy or lease an EV? Here are the top 10 states for EV tax incentives in 2024.

Note that California is not included in this list, as the state’s main rebate program is currently closed to new applications. California previously offered up to $2,500 in rebates for purchasing or leasing an EV or plug-in hybrid. Funding for those rebates may be renewed shortly, so keep an eye out for updates if you’re a California resident.

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Manjagui / Getty Images/iStockphoto

Manjagui / Getty Images/iStockphoto

New York

New York’s Drive Clean Rebate is a bit lower than other states on this list, but it’s highly accessible — there are no income requirements or complex applications. You’ll get up to $2,000 off your new EV up front at any participating dealership.

The incentive amount depends on your car’s EPA-certified all-electric range:

EVs with an MSRP over $42,000 qualify for a $500 rebate.

DenisTangneyJr / Getty Images

DenisTangneyJr / Getty Images

Delaware

The Delaware Clean Vehicle Rebate Program offers rebates up to $2,500 for a new battery EV or $1,000 for a new plug-in hybrid. The application process for this rebate is simple: You can redeem your rebate at the dealership or apply online post-purchase.

To qualify for the rebate, your new vehicle must have an MSRP under $50,000. There are no income requirements.

Scharvik / Getty Images

Scharvik / Getty Images

Pennsylvania

Pennsylvania recently renewed its funding for EV and hybrid rebates. This program is available through July 30, 2024, so now is the time to take advantage of it.

Here’s a breakdown of the rebates available:

These rebates apply to new, pre-owned and demonstration vehicles with a final purchase price of less than $50,000. Rebates also depend on your household income and family size — lower income families can qualify for an additional $1,000 rebate.

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Farragutful / Wikimedia Commons

Farragutful / Wikimedia Commons

Maryland

The state of Maryland offers tax credits for buying your new EV and installing the charging equipment. To qualify for up to $3,000, your new EV must:

  • Depend on an electric motor and battery “to a significant extent”

  • Have a purchase price under $50,000

  • Be un-modified

  • Be purchased between June 2023 and July 2027

In addition, the Maryland Energy Administration offers a rebate to cover 50% of your installation costs for EV charging equipment, up to $700.

DenisTangneyJr / Getty Images

DenisTangneyJr / Getty Images

Vermont

Vermont offers a few unique rebate programs to give residents up to $5,000 when they buy an EV. Unlike other state rebate programs, these incentives apply to used EVs and even e-bikes. Here’s an overview:

  • High Fuel-Efficiency Used Vehicle Program: This program offers a rebate of up to 25% of the purchase of a used hybrid or EV, with a maximum of $5,000.

  • Replace Your Ride: This program provides up to $5,000 for drivers to replace their high-polluting vehicle with a more efficient option.

  • Electric Bike Incentive: This incentive awards up to $800 for the purchase of an eligible e-bike. The electric bike incentive is reserved for low-income households.

Debbie Eckert / Getty Images

Debbie Eckert / Getty Images

Massachusetts

The MOR-EV program offers a range of incentives for Massachusetts residents to buy a new or used EV. Applicants who meet the income requirements can apply for multiple rebates, totaling up to $6,000. There are four rebate plans under this program:

  • MOR-EV Standard: Receive up to a $3,500 rebate for buying a new EV.

  • MOR-EV Used: Get up to $3,500 for buying a used EV.

  • MOR-EV+: An additional $1,500 rebate for qualifying applicants.

  • MOR-EV Trade-in: An additional $1,000 rebate for applicants who trade in a high-polluting vehicle.

To qualify for MOR-EV Used or MOR-EV+, you must meet certain income requirements, including participation in a Massachusetts income assistance program.

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Paulaandreaonline / Getty Images/iStockphoto

Paulaandreaonline / Getty Images/iStockphoto

Maine

The state of Maine offers tax incentives of up to $7,500 for your EV purchase. The amount you’ll qualify for depends on the type of vehicle you buy and your household income. Here’s a breakdown:

  • New battery EV: $3,500 for moderate income; $7,500 for low income

  • New plug-in hybrid: $2,000 for moderate income; $3,000 for low income

  • Used EV or plug-in hybrid: $2,500 for low income

In Maine, moderate income is defined as up to $70,000 for an individual or up to $100,000 for married couples filing jointly. Maine also offers up to $2,000 in tax credits for EV buyers of any income level.

On top of that, Maine offers a $50 annual incentive for charging your EV during off-peak hours.

pascaluehli / Getty Images/iStockphoto

pascaluehli / Getty Images/iStockphoto

Colorado

Colorado residents can gain a tax credit of up to $5,000 for purchasing or leasing a new EV with an MSRP of up to $80,000. If your new EV has an MSRP under $35,000, you can qualify for an additional credit of $2,500.

To receive the maximum incentive of $7,500, you must:

Your new EV must also meet certain requirements, including:

  • A maximum speed of at least 55 MPH

  • A gross vehicle weight rating of at least 8,500 pounds

  • Titled and registered in Colorado.

benedek / Getty Images

benedek / Getty Images

Oregon

The Oregon Department of Environmental Quality has several rebate programs that can offer up to $7,500 for purchasing or leasing an EV. Here’s a breakdown:

  • All Oregon residents qualify for up to $2,500

  • Residents with a low- or moderate-income level can qualify for an additional $5,000

There is a limited window to apply for these incentives in 2024. You must purchase or lease your new EV and apply for the rebate programs between April 3-June 3. After that window, applicants will be put on a waitlist until 2025.

In addition, several cities and utility companies in Oregon offer their own rebates to encourage Oregon drivers to go electric. The city of Ashland, for example, offers up to a $1,000 rebate for the registration of a new or used EV.

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©iStock.com

©iStock.com

Connecticut

The Connecticut Hydrogen and Electric Automobile Purchase Rebate provides incentives to Connecticut residents who buy or lease an eligible EV.

Maximum rebate amounts range up to:

  • $2,250 for a plug-in hybrid

  • $4,250 for a battery EV

  • $9,500 for a fuel cell EV.

To qualify for these rebates, you must:

  • Be a resident of an environmental justice community or distressed municipality

  • Participate in a qualifying state or federal income-qualifying program

  • Have an income less than 300% of the federal poverty level.

The program also offers rebates up to $7,500 for qualifying used vehicles.

nrqemi / Getty Images

nrqemi / Getty Images

Go Electric in 2024

Thinking about purchasing or leasing a new EV? Federal and state rebates make it cheaper than you might think. Remember, all the incentives listed above can be combined with the $7,500 federal EV incentive.

Don’t see your state on this list? That doesn’t mean you have to move. New electric vehicle incentives are being funded every year — keep an eye on your state’s available rebates so you can take advantage of new programs.

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This article originally appeared on GOBankingRates.com: 10 States Where Driving an EV Is Cheaper in 2024



This article was originally published by a finance.yahoo.com . Read the Original article here. .

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