By: Brian Lips, Senior Policy Project Manager
State governments and electric utilities across the country are offering financial incentives for the purchase of electric vehicles and associated charging equipment. DSIRE Insight staff have identified more than 250 incentive programs, varying from broad grant programs implemented by state transportation authorities or other state agencies to highly specific rebate programs provided by electric utilities. Recently, staff added these incentive programs to the Database of State Incentives for Renewables and Efficiency (DSIRE).
Utilities are more likely to provide incentives for electric vehicle supply equipment (EVSE) than electric vehicles themselves, while state governments are more inclined to incentivize electric vehicles than EVSE. States also favor grant programs, with nearly half of the incentive programs offered by a state government coming in the form of a grant program, often funded through the Volkswagen Environmental Mitigation Trust.
Financial Incentives for Passenger Electric Vehicles
Incentives are available for a broad array of electric vehicles types, including all-electric passenger vehicles, plug-in hybrid electric vehicles, electric buses, and medium- and heavy-duty electric vehicles. Incentives for passenger electric vehicles are currently available in 31 states, while incentives for electric buses are available in 22 states.
Financial Incentives for Electric Buses
Financial incentives for electric vehicle supply equipment are available 43 states, with many of these programs offered directly by utilities and focused on specific market segments, such as residential, multi-family, commercial, workplace, and highway. Many of these programs require charging stations to be “smart” or “networked” and that rebate recipients participate in special rates for vehicle charging that typically vary by time of day.
Financial Incentives for Electric Vehicle Supply Equipment
While some of the state grant programs funded through the Volkswagen Environmental Mitigation Trust are temporary in nature and winding down, states lawmakers and electric utilities continue proposing new incentive programs. During the second quarter of 2021, DSIRE Insight staff recorded 133 actions ongoing or under consideration in 32 states related to incentives for electric vehicles or charging infrastructure. Twelve states enacted bills creating or modifying incentives for electric vehicles or charging infrastructure during the quarter, and electric utilities proposed new incentives or incentive modifications in six states.
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Visit the Database of State Incentives for Renewables and Efficiency (DSIRE) to view incentive programs for electric vehicles and charging infrastructure. To stay up to date with changes to electric vehicle policies and incentives, check out DSIRE Insight’s 50 States of Electric Vehicles report and Single-Tech Electric Vehicle Subscription.