These U.S. States Still Offer Rebates For EVs And PHEVs

• The $7,500 federal tax credit goes away tomorrow, marking the end of federal EV incentives.
• You can still get significant rebates in some states.
• If you qualify, you could save up to $7,500 of a new EV in some states.

The U.S. auto industry is approaching an inflection point. The Trump administration has killed the $7,500 federal clean vehicle credit, which had unlocked the rapid growth of electric vehicle sales nationwide over the past few years.

With the Sept. 30 end date in mind, buyers rushed to claim the credit in its final days, helping automakers sell a record 410,000 EVs in the third quarter, which accounted for 11% of overall sales, according to Cox Automotive. Now EVs will have to sell without the credit, and we’re about to find out what organic growth looks like.

However, a small number of U.S. states will continue to offer their own regional tax credits, rebates, and incentives, allowing their residents to continue offsetting the high cost of EVs compared to gasoline vehicles. 

The number of states continuing to offer rebates as of Oct. 1 is really small, about 15. That’s less than less than half of the country. California’s famous Clean Vehicle Rebate Project ended in 2023, and talks of reviving the same after the end of the federal tax credit have so far failed.

Other pro-EV states, such as Minnesota, Washington and Vermont have run out of funding for their local EV rebate programs. Some of these states may resume their rebates next year, but that’s uncertain and could require local legislative actions.

The states where EV rebate or tax credit allocation is not yet exhausted include New Jersey, New York, Connecticut, Oregon, Illinois, Delaware,Colorado and a few others (See the complete list below). Similar to the federal tax credit, these states have specific eligibility criteria. 

They mainly prioritize low- and moderate-income families. But the conditions also vary depending on tax liabilities, vehicle price, battery size, model year and, in some cases, even the gross vehicle weight rating and driving range.

Photo by: Patrick George

No state will hand out a flat rebate for your battery electric or plug-in hybrid vehicle. Hence, the numbers listed below represent the maximum possible rebate or tax credit, as listed on the state government websites as of the time of writing. Note, too, that these rebates apply only to residents, so you can’t just drive to another state with a rebate to score a deal. 

Some states also cover the full or partial cost and installation of Level 2 home chargers, which is the preferred way of charging in the vast majority of the U.S. If the state governments don’t offer incentives on chargers, dozens of utility companies do.

So do your homework and claim all the possible rebates and discounts from the automaker, local governments and utility companies. Additionally, note that the incentives listed below are intended for individuals. Some state governments offer separate rebates to commercial fleets, businesses and multi-unit housing complexes.

And finally, states don’t have strict critical materials sourcing requirements for EV batteries, unlike the federal government, so even the Japanese-made Toyota bZ and the Belgian-made Volvo EX30 will likely qualify for the local programs. This is a plus, as it won’t limit your options to only the U.S.-made EVs. Click the hyperlinks below for eligibility requirements for each state.

Note that this list is subject to frequent changes, so we’ll update it periodically. In the meantime, let us know in the comments if we missed any important state incentive. 

Have a tip? Contact the author: suvrat.kothari@insideevs.com