Yes, and since the federal purchase credit ended in September 2025, state and utility programs are now the main source of EV purchase savings rather than a supplement to a federal credit. These vary widely by location, so what’s available to you depends entirely on where you live.
The main categories of state and local incentives
- State tax credits or rebates for new or used EV purchases, amounts and eligibility rules vary considerably by state
- Utility company rebates for buying an EV or installing home charging equipment, offered independently by individual utilities
- Time-of-use electricity rates that make overnight charging cheaper, an ongoing savings rather than a one-time rebate
- Income-qualified programs offering larger rebates, sometimes combined with a gas-car trade-in incentive
- HOV lane access, reduced registration fees, or reduced tolls in some states, non-cash benefits that still have real value
Does the federal loan interest deduction stack with these?
Generally, yes. The new federal auto loan interest deduction is separate from state and local programs, so a financed purchase of a U.S.-assembled EV can potentially combine the federal deduction with whatever state or utility incentives apply in your area. Our post on the new EV loan interest deduction covers how that federal piece works on its own.
Why checking your specific state matters more now
With no federal purchase credit acting as a baseline everyone can count on, the gap between a strong state program and a weak one has become the biggest factor in how much a given buyer can actually save. Some states offer several thousand dollars in combined incentives; others offer very little beyond utility-level programs.
💡 Tip: Official source: U.S. DOE Alternative Fuels Data Center, State Laws & Incentives. Our Tax Credits & Incentives tool looks up current state and local programs by location.