Electric Vehicle Offers & Information

A federal tax credit is available for new and used electric vehicles that meet requirements specified in Internal Revenue Code Section 30D.

New Vehicle Clean Credit up to $7,500.
You may qualify for a credit up to $7,500 if you buy a new, qualified plug-in EV. The Inflation Reduction Act of 2022 changed the rules for this credit for vehicles purchased from 2023 to 2032. Information about new vehicles purchased in 2022 and before or for vehicles purchased in 2023 and after.

Used Vehicle Clean Credit up to $4,000.
Beginning January 1, 2023, if you buy a qualified used electric vehicle (EV) from a licensed dealer for $25,000 or less, you may be eligible for a used clean vehicle tax credit. The credit equals 30% of the sale price up to a maximum credit of $4,000. Additional Details.

The credit is nonrefundable, so you can't get back more on the credit than you owe in taxes. You can't apply any excess credit to future tax years.

Starting in January 2024, an Inflation Reduction Act provision allows consumers to transfer the tax credit to car dealers, reducing the purchase price of eligible new and used vehicles at the time of sale.

The Inflation Reduction Act invests $1 billion to replace existing non-zero-emission heavy-duty vehicles with zero-emission vehicles, support zero-emission vehicle infrastructure, and to train and develop workers. The EPA will offer funding to eligible recipients to replace existing non-zero-emission Class 6 and 7 heavy-duty vehicles with eligible Class 6 and 7 zero-emission vehicles.

The Diesel Emissions Reduction Act (DERA) Program funds grants and rebates that protect human health and improve air quality by reducing harmful emissions from diesel engines. The program solicits applications for projects that achieve significant reductions in diesel emissions and exposure, particularly from fleets operating in areas designated by the Administrator as poor air quality areas.

EPA: Clean School Bus Program

The EPA’s Clean School Bus Program provides $5 billion over the next five years (FY 2022-2026) to replace existing school buses with zero-emission and low-emission models. This program is supported with funding from the Bipartisan Infrastructure Law,

Businesses and tax-exempt organizations that buy a qualified commercial clean vehicle may qualify for a clean vehicle tax credit of up to $40,000 under Internal Revenue Code (IRC) 45W. The credit equals the lesser of:

• 15% of your basis in the vehicle (30% if the vehicle is not powered by gas or diesel)
• The incremental cost of the vehicle

Qualified vehicles with gross vehicle weight ratings (GVWRs) of under 14,000 pounds have a maximum credit of $7,500.

Plug-in electric vehicles must draw significant propulsion from an electric motor with a battery capacity of at least:

• 7 kilowatt hours if the gross vehicle weight rating (GVWR) is under 14,000 pounds
• 15 kilowatt hours if the GVWR is 14,000 pounds or more

Businesses are eligible to receive a Federal Tax Credit for alternative fueling infrastructure including EV charging stations. Tax credits for qualified alternative fueling infrastructure are for up to 30% of the cost to purchase and install the infrastructure. Fueling station owners who install qualified equipment at multiple sites are allowed to use the credit towards each location. Consult with your tax professional to see how these credits apply to your business.

FTA provides grants to local public transit systems, including buses, subways, light rail, commuter rail, trolleys and ferries. Since 1964, FTA has partnered with state and local governments to create and enhance public transportation systems, investing more than $13 billion annually to support and expand public transit services. FTA provides annual formula grants to transit agencies nationwide as well as discretionary funding in competitive processes.

The Bipartisan Infrastructure Law, as enacted in the Infrastructure Investment and Jobs Act, was signed into law by President Biden in November 2021 and is the largest federal investment in public transportation in the nation’s history. The legislation reauthorizes surface transportation programs for FY 2022-2026 and provides advance appropriations for certain programs. The Bipartisan Infrastructure Law authorizes up to $108 billion to support federal public transportation programs, including $91 billion in guaranteed funding.

The Airport Zero Emissions Vehicle (ZEV) and Infrastructure Pilot Program improves airport air quality and facilitates use of zero emissions technologies at airports. Created in 2012, the program allows airport sponsors to use Airport Improvement Program (AIP) funds to purchase ZEVs and to construct or modify infrastructure needed to use ZEVs.

Grant funding must be used for airport-owned, on-road vehicles used exclusively for airport purposes. Vehicles and infrastructure must meet the Federal Aviation Administration's Airport Improvement Program requirements, including Buy American requirements.