Incentives vary in form and are offered at the federal, state, and local levels. Incentives at the local level include those from your city, county or parish, air district, or electric utility.
There are a few main types of EV incentives:
- Tax credits—These reduce your tax bill. Federal tax credits are now available through registered dealers at the time of purchase and act more like an instant discount.
- Rebates—These are money back on a purchase you made after the transaction. Some electric utilities offer rebates on specific home chargers or electric vehicles.
- Discounted electricity plans—Utilities might offer lower rates at times when electricity demand is low and power is inexpensive in what is referred to as a time-of-use plan. They do this to spread the load evenly throughout the day.
Perks—These are intangible incentives, like being able to drive in the HOV lane even if there are no other passengers in the car or parking in preferred spaces. These preferred spaces are different from ones with chargers, which are not for parking unless you are charging.
