Forty-five states and the District of Columbia provide an incentive for certain hybrid and/or electric vehicles, either through a specific utility operating in the state or through state legislation. The incentives range from tax credits or rebates to fleet acquisition goals, exemptions from emissions testing or utility time-of-use rate reductions. The five gray colored states do not have any laws or policies in place that would specifically impact the buying of an electric vehicle or the building of electric vehicle supply equipment (EVSE). In addition, 20 states have enacted legislation to implement a special registration fee on alternatively fueled or electric vehicles. All fees are in addition to the standard registration fees.
Additional maps comparing specific state incentives are displayed at the bottom of the page.
Charging Rate Incentive: Alabama Power offers a residential PEV rate for customers who verify possession of a qualified PEV and a Business Electric Vehicle Time-of-Use (BEVT) rate for electricity purchased to charge PEVs used for fleet purposes. The electricity used for vehicle charging is metered separately from all other electricity use.
Alternative Fuel Vehicle (AFV) Parking Incentive: An individual driving a dedicated AFV may park without penalty in parking areas that are designated for carpool operators, provided the vehicle is using alternative fuel. Recognized alternative fuels include propane, natural gas, electricity, hydrogen and a blend of hydrogen with propane or natural gas.
AFV Use Tax Exemption: S.B. 1413 (2014) exempts certain alternative fuels such as natural gas, electricity, propane, and hydrogen from the state use tax.
Electric Vehicle Supply Equipment Tax Credit: A tax credit of up to $75 is available to individuals for the installation of EV charging outlets in a house or housing unit built by the individual.
HOV Lane Exemption: Qualified alternative fuel vehicles may use designated HOV lanes regardless of the number of occupants in the vehicle.
Joint Use of Government Fueling Infrastructure: To the extent practical, an Arizona state agency or political subdivision that operates an alternative fueling station must allow vehicles, other state agencies or political subdivisions own or operate to fuel at the station. For the purpose of this requirement, alternative fuels include propane, natural gas, electricity, hydrogen, and a blend of hydrogen with propane or natural gas.
Plug-In Electric Vehicle Charging Rates: The Salt River Project offers an experimental reduced rate time-of-use plan for certain plug-in hybrid and electric vehicle owners.
Reduced AFV License Tax: The vehicle license tax for an AFV is $4 for every $100 in assessed value. During the first year after initial registration, the AFV ‘s assessed value is 1 percent of the manufacturer’s base retail price (compared to 60 percent for conventional vehicles). For each succeeding year, the original value of the AFV is reduced by 15 percent. The minimum amount of the annual AFV license tax is $5. For the purpose of this tax, AFVs include those powered exclusively by propane, natural gas, electricity, hydrogen, or a blend of hydrogen with propane or natural gas.