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Tax Credits and Incentives

The federal governments of the US and Canada offer a number of financial incentives to increase adoption of electric vehicles and promote clean energy transportation. This may be in the form of a  federal,state, and provincial tax credits, or at point of sale (Canada).

United States

The federal Internal Revenue Service (IRS) tax credit is for $2,500 to $7,500 per new EV purchased for use in the U.S. The size of the tax credit depends on the size of the vehicle and its battery capacity.  To find out specific tax credit amounts for individual vehicles, visit FuelEconomy.gov’s Tax Credits for Electric Vehicles page for details. State and/or local incentives may also apply. The U.S. Department of Energy’s (DOE’s) Alternative Fuels Data Center (AFDC) maintains a list of State & Federal Incentives.

Canada

Transport Canada offers a national purchase incentive program for zero emission (ZEV) electric vehicles. A ZEV is a vehicle that has the potential to produce no tailpipe emissions. They can still have a conventional internal combustion engine, but must also be able to operate without using it. Canadians who purchase electric vehicles or plug-in hybrids are eligible for an incentive of $2,500 to $5,000. Incentives will be applied at the point-of-sale by dealerships.