Buying an Electric vehicle has perks including lots of incentives.
Welcome to the BestEVDeals ultimate guide to electric car incentives. We hope you find the answers you're looking for, and maybe stumble upon some other useful information that can save you money along your journey. This guide works by breaking out electric car incentives by both federal and state levels. We also breakout some frequently asked questions around EV incentives towards the bottom. Okay then, so let's get started...
The way it works on a federal level is that any EV purchased new in or after 2010 may be eligible for a federal income tax credit of up to $7,500. Credit amount varies depending on the capacity of the battery used. You can find the exhaustive list here. We've accumulated the brands you're likely (hopefully) thinking of:
| Vehicle Make & Model | Full Credit | Phase Out - 50% | Phase Out - 25% |
| Audi | 1/1/10 to Present | TBD | TBD |
| 2019 e-tron SUV | $7,500 | – | – |
| BMW | 1/1/10 to Present | TBD | TBD |
| 2014–20 i3 Sedan | $7,500 | – | – |
| 2017 i3 Sedan (w/ 60 amp-hr battery) | $7,500 | – | – |
| 2018–20 i3s | $7,500 | – | – |
| 2018–20 i3s w/ Range Extender | $7,500 | – | – |
| Chevrolet | 1/1/10 to 3/31/19 | 4/1/19 to 9/30/19 | 10/1/19 to 3/31/20 |
| 2017–20 Chevrolet Bolt EV | $7,500 | $3,750 | $1,875 |
| 2014–16 Chevrolet Spark EV | $7,500 | $3,750 | $1,875 |
| Fiat | 1/1/10 to Present | TBD | TBD |
| 2013–19 Fiat 500e | $7,500 | – | – |
| Ford | 1/1/10 to Present | TBD | TBD |
| 2012–18 Ford Focus EV | $7,500 | – | – |
| Hyundai | 1/1/10 to Present | TBD | TBD |
| 2017–19 Ioniq Electric | $7,500 | – | – |
| 2019 Kona Electric Vehicle | $7,500 | – | – |
| Jaguar | 1/1/10 to Present | TBD | TBD |
| 2019 Jaguar I-Pace (First Edition, HSE, SE, S models) | $7,500 | – | – |
| 2020 Jaguar I-Pace (HSE, SE, S models) | $7,500 | – | – |
| Kia | 1/1/10 to Present | TBD | TBD |
| 2019–20 Niro EV | $7,500 | – | – |
| 2015–20 Soul Electric | $7,500 | – | – |
| Mercedes-Benz | 1/1/10 to Present | TBD | TBD |
| 2014–17 B-Class EV | $7,500 | – | – |
| MINI | 1/1/10 to Present | TBD | TBD |
| 2020 MINI Cooper S E Hardtop 2-Door | $7,500 | – | – |
| 2021 MINI Cooper S E Hardtop | $7,500 | – | – |
| Mitsubishi | 1/1/10 to Present | TBD | TBD |
| 2012, 2014, 2016, 2017 i-MiEV | $7,500 | – | – |
| Nissan | 1/1/10 to Present | TBD | TBD |
| 2011–20 Leaf | $7,500 | – | – |
| Polestar Automotive | 1/1/10 to Present | TBD | TBD |
| 2021 Polestar 2 | $7,500 | – | – |
| Porsche | 1/1/10 to Present | TBD | TBD |
| 2020 Taycan Turbo EV | $7,500 | – | – |
| 2020 Taycan Turbo S EV | $7,500 | – | – |
| smart USA | 1/1/10 to Present | TBD | TBD |
| 2011, 2013–18 fortwo electric vehicle (coupe/cabriolet) | $7,500 | – | – |
| 2019 EQ fortwo Coupe | $7,500 | – | – |
| 2019 EQ fortwo Cabrio | $7,500 | – | – |
| Tesla Motors | 1/1/10 to 12/31/18 | 1/1/19 to 6/30/19 | 7/1/19 to 12/31/19 |
| 2012–20 Model S | $7,500 | $3,750 | $1,875 |
| 2016–20 Model X | $7,500 | $3,750 | $1,875 |
| 2020 Model 3 Standard Range | $7,500 | $3,750 | $1,875 |
| 2019–20 Model 3 Standard Range Plus | $7,500 | $3,750 | $1,875 |
| 2017–20 Model 3 Long Range | $7,500 | $3,750 | $1,875 |
| 2018–20 Model 3 Long Range AWD and AWD Performance | $7,500 | $3,750 | $1,875 |
| 2018–20 Model 3 Mid Range | $7,500 | $3,750 | $1,875 |
| 2008–11 Roadster | $7,500 | $3,750 | $1,875 |
| Toyota | 1/1/10 to Present | TBD | TBD |
| 2012–14 RAV4 EV | $7,500 | – | – |
| Volkswagen | 1/1/10 to Present | TBD | TBD |
| 2015–19 e-Golf | $7,500 | – | – |
See the exhaustive list above for full view, including PHEVs
At the state level, you have to find out whether or not additional incentives are offered. It does greatly vary by state, but if you're lucky you'll be able to add some additional savings - click on your state below:
Electric Car Incentives By State
Electric cars currently represent about 1.80% of the total cars driven in the US today. Some states, like California, have higher proportions (~7.20%), and others have lower, like Mississippi (0.22%). With global c02 emissions at an all time high (well, before COVID at least), the fact remains that one electric vehicle (end to end manufacturing through driven death) emits 1/2 (HALF!) the carbon emissions an ICE (internal combustion engine) vehicle does -- it's clear a change is needed.
To try and add inertia to that change, the federal government provides incentives in the form of tax credits that can help you save money on your taxes if you buy a qualified EV. Between federal and state level incentives, electric car shoppers can rack up some pretty neat discounts.
Unfortunately, that's not what that means, it's a common misconception though. Tax credits, like the ones you can get buying an electric car, only apply if you owe taxes! Let's use an example, let's say that you owe $20k in taxes every year. A federal tax credit could lower your $20k owed with let's say a $7500 federal tax credit down to now $12,500 owed! And to make that sweeter, you can stack your state tax credit with your federal tax credit. In California, qualifying vehicles get a $4500 tax credit, while you can also take advantage of the $7500 federal credit - that's literally $12000 off in cash owed that year. Would take you from $20k owed to $8k owed. Amazing.
If you noticed above in the federal incentives matrix, it outlines two "phase-out" columns that indicate whether that brand has surpassed its cap of 200,000. Once an automaker crosses the chasm of 200k electric cars sold, the tax credits begin to diminish.
Above diagram shows the "phase-out" of federal tax credits
We hope you found the answers you were looking for. If not, let us know - we're working to make this the most definitive guide for electric car incentives.
