Incentives for Electric Vehicle Chargers

Federal Incentives

 

For Cars

 

$2,500 to $7,500 tax credit, depending on size of battery (4 kWh to 16 kWh), for electric-drive vehicles (EVs and PHEVs) sold after December 31, 2008. This is the best and biggest new incentive brought on by the American Recovery and Reinvestment Act of 2009 (stimulus bill), and applies to at least 200,000 units per auto manufacturer before it phases out.

 

For 2- or 3-wheelers

 

10% consumer tax credit for 2- or 3-wheeled vehicles (up to a maximum of $2,500 tax credit on vehicles costing $25,000 and above). This incentive further lowers the cost on the most affordable electric vehicles -- electric motorcycles and enclosed 3-wheelers. Vehicles must have a minimum of 2.5 kWh of batteries. Ends the last day of 2011, with possibility for renewal.

 

For Conversions

 

10% tax credit for plug-in conversions with a maximum credit of $4,000 (on a $40,000 conversion expense). Available until December 31, 2011. This applies to both PHEV conversions and conversions from combustion engines to EVs. When coupled with tax credits of up to $6,000 being offered by states -- including Colorado and Florida so far-- converting your car could be an ideal way to go plug-in!

 

For Charge Stations

 

The EV infrastructure tax credit was extended for one year until 12/31/11 at prestimulus levels. This means that the tax credit on an EV charge station is 30% up to $1000 for consumers and 30% up to $30,000 for businesses rather than 50% up to $2,000/50% up to $50,000 as it has been for the past two years. Applies to equipment installed before the end of 2011.

 

For Washington State

 

 BEVs are exempt from 6.5% sales tax and PHEVs exempt from the motor vehicle sales tax of 0.3%. Tax exemptions also apply to charge station parts and labor costs.