A List of State Electric Vehicle Tax Credits & Rebates in 2025

Some States are Stacking on EV Tax Credits & Rebates on to Federal EV Tax Credits

This state electric vehicle tax credit and rebate guide has been updated with information for the 2025 tax year. In my most efficient vehicles, cheapest new vehicles, and cheapest electric vehicles articles, I highlighted a few electric vehicles that have prices that rival the cheapest gas-powered vehicles for sale in the U.S. market. But, a key component of that reduced cost is the U.S. federal tax credit of $7,500 knocking the net price down significantly.

What can push those and other electric or plug-in hybrid vehicles down to even lower price levels are additional state-level plug-in hybrid (PHEV) and electric vehicle (EV) tax credits, rebates, and incentives that stack on top of the federal tax credit. This article will break down all of those state-level PHEV and EV incentives – and currently 10 states have some version of a significant credit or rebate on the purchase of new or used EVs and PHEVs. First, let’s recap he federal electric vehicle tax credit and which vehicles (and taxpayers) are eligible for it. Here’s everything that we’ll cover in this article:

Federal Electric Vehicle Tax Credit (Pre-Inflation Reduction Act)

Pre-Inflation Reduction Act going into effect at the beginning of 2023, federal electric clean vehicle tax credits (a must-read for anyone looking to purchase an electric vehicle) were very straightforward. Almost every electric vehicle sold in the U.S. market was eligible for a tax credit (up to $7,500), provided that it met some fairly basic criteria. The credit amount was $2,917 for a vehicle with a battery capacity of at least 5 kilowatt hours (kWh), plus $417 for each kWh of capacity over 5 kWh (up to $7,500 max credit) – making almost every battery electric vehicle (BEV or FEV), fuel cell electric vehicle (FCEV), and plug-in hybrid electric vehicles (PHEV) qualified for at least a portion of that credit.

The only sticking point (and it starting becoming an increasingly big one), was that once automakers hit 200,000 vehicles sold in the U.S. market, credits for their vehicles began to phase out. GM and Tesla hit that mark early and then Toyota. You can see more details on the previous electric vehicle tax credit requirements and a list of eligible vehicles at the Fueleconomy.gov electric vehicle tax credit site.

2025 Federal Electric Vehicle Tax Credits

The Inflation Reduction Act (signed in 2022 and placed into effect in 2023) made a number of key changes to the PHEV and electric vehicle federal tax credits and renamed them as the “Clean Vehicle Tax Credit”. The 6 biggest changes are:

1. Major vehicle requirement changes:
   • have a battery capacity of at least 7 kilowatt hours.
   • be made by a qualified manufacturer.
   • have final vehicle assembly in North America.
   • meet certain battery and minerals sourcing criteria.
   • have a maximum vehicle MSRP of $80,000 for vans, sport utility vehicles and pickup trucks and $55,000 for other vehicles.
2. Removed automaker vehicles-sold volume phaseouts.
3. Taxpayer modified adjusted gross income (MAGI) eligibility caps were added.
4. Used electric vehicles are now potentially eligible for up to a $4,000 tax credit.
5. Starting in 2024, dealerships will be able to offer the value of a tax credit up front to consumers.
6. Creation of a “Clean Commercial Vehicle Credit”, which effectively created a loophole opportunity for auto lessors to pass along a $7,500 EV lease tax credit to consumer lessees.

The “final vehicle assembly in North America” and battery and minerals sourcing criteria are dramatically impacting which electric vehicles are eligible for the full $7,500 clean vehicle tax credit, a partial credit, or no credit at all. Once automaker supply chains adjust in the next few years, you will see more and more EVs and PHEVs become eligible for partial and full federal tax credits. Here’s a list of all PHEVs and EVs eligible for a tax credit with new federal materials, sourcing, and manufacturing requirements

In other words, before running out to buy an electric vehicle, make sure that you’ve done your homework (the “must read article” I highlighted above should help, but is really just a starting point, as everything is going to be a moving target the next few years).

Where & How to Claim a State Electric Vehicle Tax Credit

It’s good to know all of the details included in this article for your state (and federally), but all of the best tax software and even cheapest ways to e-file will have versions of their product that will walk you through both federal and state electric vehicle tax credit eligibility and the claim process. Here’s some best-available partner discounts (automatically applied when clicking below links) for them.

A State-by-State List of Electric Vehicle Tax Credits, Rebates, & Incentives

On top of the electric vehicle tax credit, a number of states have hybrid and electric vehicle tax credits, rebates, and incentives. I’ll highlight what I was able to dig up for 2025, but you will need to do some further digging and check with your state to make sure these incentives still apply, as they change frequently, and often depend on state funding per year (first-come, first-serve). Some states have run out of funding early or mid-year in the past, so it’s important to do your homework prior to purchase, not after. If your state is not listed, my research came up empty. If I missed something in your state, let me know and I’ll add it.

Colorado

Colorado’s electric vehicle tax credits have been extended and expanded with a phaseout in place for purchases of electric vehicles in the following years:

More info can be found here.

Connecticut

The state of Connecticut’s Hydrogen and Electric Automobile Purchase Rebate (CHEAPR) program offers vehicle rebates for Connecticut residents who purchase or lease a new eligible electric, fuel cell electric, or plug-in hybrid electric vehicle – up to a maximum MSRP of $50,000. Expanded “Rebates+” credits are available for those who meet one of the following lower income criteria.

• Reside in an Environmental Justice (EJ) Community or Distressed Municipality
• Participate in a qualifying state or federal income qualifying program
• Have income less than 300% of the Federal Poverty Level (FPL)

See the full FAQ for more details. Funds are limited and all funds are allocated on a first-come, first-serve basis, in the following amounts:

Delaware

The state of Delaware is offering electric vehicle cash rebates totaling up to $2,500 depending on vehicle type. The rebate must be applied for within 90 days of the purchase date. Rebate amounts are as follows:

Illinois

The Illinois Electric Vehicle Rebate Program (funded by the Illinois Environmental Protection Agency) is making rebates available for Illinois residents that purchase a new or used all-electric vehicle from an Illinois licensed dealer in the following amounts.

• $4,000 rebate for the purchase of an all-electric vehicle that is not an electric motorcycle.
• $1,500 rebate for the purchase of an all-electric motorcycle.

It appears that funding/applications frequently pause and restart as funding is available. See the FAQs here for more info.

Maine

Maine suspended electric vehicle rebates starting November 16, 2024, for all but low-income residents. Unfortunately, details are slim on the current rebate level and critieria, but there is a form that can be filled out to determine eligibility.

Enhanced rebates for qualified low income levels were previously listed as:

• New EV: $7,500
• New PHEV: $3,000
• Used EV or PHEV: $2,500

Maryland

Maryland was offering an excise tax credit through 2027 on a qualifying zero-emission plug-in electric or fuel cell electric vehicles, but funding is no longer available.

Massachusetts

The Massachusetts Department of Energy Resources has a program called Massachusetts Offers Rebates for Electric Vehicles (MOR-EV), which offers rebates for the purchase or lease of new or used electric vehicles, including battery and fuel-cell electric vehicles.

There is a $3,500 rebate for the purchase or 36 month lease of new vehicles with a purchase price under $55,000. An additional $1,000 is available when trading in a pre-2012 vehicle, and an additional $1,500 is available if certain lower income requirements are met.

New Jersey

New Jersey is offering up to a $4,000 rebate for eligible new electric vehicles with an MSRP under $55,000. Income‐qualified
applicants will be eligible for the Charge Up+ additional income‐based incentive in the amount of $2,000, bringing the maximum incentive to $4,000. More details found here.

New York

New York offers tax rebates for new electric vehicles, in the following amounts:

• Range: > 200 miles: $2,000
• Range: 40 to 199 miles: $1,000
• Range: <40 miles: $500
• Electric vehicles > $42,000 MSRP: $500

Pennsylvania

Pennsylvania offers EV rebates for new and used electric vehicles with final purchase price of $45,000 or less (purchase or lease) for the following amounts:

• Battery electric vehicle (new, demo, or 1-time pre-owned): $3,000
• Plug-in hybrid (PHEV) cars and trucks: $1,500
• All other alternative fuel vehicles, and electric motorcycles: $500
• Max household income cannot be more than 300% above the federal poverty level.
• An additional $1,000 is available to applicants who meet lower-income requirements (max household income not above 150% of the federal poverty level).

Rhode Island

Rhode Island’s DRIVE EV Rebate program is offering the following incentives:

• Rebates of up to $1,500.00 for the purchase or lease of new battery electric vehicles and fuel-cell electric vehicles, and up to $1,000.00 for new plug-in hybrid electric vehicles (below $60,000 vehicle price only).
• Rebates of up to $1,000.00 for the purchase or lease of used battery electric vehicles and fuel-cell electric vehicles, and up to $750.00 for used plug-in hybrid electric vehicles (below $40,000 vehicle price only).

An additional rebate of up to $1,500 is available to applicants that participate in a state or federal income-qualified program (see DRIVE+). Rebates are awarded on a first-come, first-served basis.

Vermont

Vermont relaunched its electric vehicle incentives a few years ago for both used and new electric vehicles, with modified adjusted gross income (MAGI) limitations.

Funds for the program have been exhausted as of late 2024, though the program may re-start with additional funding.

More details can be found here.

Don’t Forget About the Improved Federal Energy Tax Credits & New Energy Rebates

Also don’t forget about the new federal energy tax credits and rebates. There are significant updates that resulted from the Inflation Reduction Act available (including solar panels, electrical panels, battery storage, and EV charging) that could make the prospect of electric vehicle ownership an even bigger cost-saving venture. The linked-to article is a complete guide to the 2 improved energy tax credits and 2 new energy rebates available to Americans.

PHEV & Electric Vehicle State Tax Credit Discussion

If you live in one of these states are these incentives, matched with the federal credit enough to make you consider a PHEV or electric vehicle purchase?

Let me know if I missed any states above!