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Where do I go if I have additional EV questions?
If you still have questions about electric vehicles, check out PlugStar.com to browse electric cars, learn about home chargers, find a dealer, and learn more about local EV incentives.
You can also Contact our EV Support Program team at support@pluginamerica.org or 877-EV-HELP-1
(877-384-3571) Monday through Friday, 9 a.m. to 5 p.m. PT.
EVs and the Electric Grid
Will more EVs on the grid drive up electricity prices?
No, EVs will not drive up electricity prices. In fact, EVs can potentially drive down electricity costs if they are intentionally integrated with the electricity grid. Like highways, the electricity grid is built for rush hour, but most of the day, there is plenty of electricity available on the grid. Since EVs generally charge only a few hours a day at most, they can charge during off-peak times and during times of low electricity demand. A recent study found that EVs are actually driving rates down for America’s utilities by contributing approximately $3 billion more in revenues than in costs. Since EVs can be charged at different times, they can result in additional electricity sales and revenue without requiring costly upgrades, making the grid more efficient.
Can the electric grid support the transition to electric vehicles?
Yes, the electric grid can support the transition to EVs. Electric vehicles are essentially mobile batteries that can get us where we need to go. Since most EVs are only used a small fraction of each day, they can often charge when energy on the grid is clean, cheap, and abundant.
The U.S. added 1.2 million EVs to the grid in 2023, and electricity use decreased! EVs have the potential to make the grid more efficient by using electricity when it isn’t needed for other applications or when there is excess capacity on the grid from renewables. EVs may require grid upgrades at the local utility level, but EVs are not going to “crash” the grid. Since EVs are a flexible load, they can even help offset the largest drivers of electric load growth, which are data centers and new manufacturing. Water heating and air conditioning in the average home use more electricity than EVs.
EV Range and Weather
Do EVs lose range in hot weather?
If the temperature is below 90℉, range loss won’t be noticeable. Once temperatures reach 95℉ or 100℉, you may notice some temporary range loss, but it won’t be as noticeable as range loss in extremely cold temperatures because a comfortable cabin temperature of 70℉ is much closer in temperature to 95℉ than it is to 10℉.
In hot temperatures, it is helpful to make sure you don’t get to extremely low states of charge because your car’s thermal management system requires energy to cool the battery. You can protect your vehicle’s battery and range by parking it in the shade or in a parking garage during hot spells.
Can EVs charge in cold weather?
Yes. There are over 1 million EVs registered in cold-climate countries like Sweden, Norway, and Canada. All winter long, EV drivers in those countries are logging millions of miles and stopping to charge as necessary. EV charging may take a little longer in very cold weather, but most newer EV models come with features like battery preconditioning through heat pump technology to mitigate this effect. In some models, you can enter your charging destination into the car’s navigation system and the car will precondition, or warm up, the battery so it will be ready to charge quickly once you reach the charging station and plug in.
Does an EV lose range in cold weather?
Both gas and electric cars lose efficiency in very cold temperatures, but this will not significantly impact the average driver. EVs can experience temporarily reduced range in cold temperatures because the cold can slow the chemical and physical reactions needed to power an EV.
The cold impacts some EV models more than others. Some lose as little as 15% of their range and others lose more. While this may be a challenge on a sub-freezing long-distance road trip, most EVs have far more than enough range for daily driving and longer-distance travel.
One way to preserve your range in winter is to precondition your car by setting it to preheat the cabin, seats, and steering wheel while it is still plugged into a charger. Many EVs have an app that allows you to do this from the comfort of your home or office. Few things beat climbing into a cozy, pre-heated EV on a cold winter day. Ask the people of Norway, where 94% of vehicle sales are electric.
EV Manufacturing and Jobs
Do EVs make the U.S. more globally competitive?
The world is transitioning to electric vehicles. There are now around 40 million EVs on roads around the world. U.S. auto manufacturers sell cars and trucks globally. In order to remain internationally competitive, they need to manufacture electric vehicles. Nearly every major auto manufacturer has committed to electrifying part or all of their fleet in the next decade or so.
China invested earlier than the U.S. in the EV transition, but thanks to federal investments through the Bipartisan Infrastructure Law (BIL) and the Inflation Reduction Act (IRA), the U.S. is catching up. These laws invest billions of dollars in building and scaling domestic EV and battery manufacturing and securing domestic and strategically important supply chains. These investments serve as a commitment to help U.S. automakers be economically competitive as the world continues shifting to EVs.
Will a transition to EVs result in fewer jobs for auto workers?
Not at all. In fact, it’s the opposite: Transitioning to EVs has created more jobs. Recent federal investments in EV infrastructure and deployment have catalyzed U.S. EV and battery manufacturing investment to the tune of $233 billion since late 2021. These investments have created 201,900 new U.S. EV-related jobs.
Since EVs require fewer moving parts, initial estimates predicted job losses from the transition to EV manufacturing, but a recent study found just the opposite. In the switch from internal combustion engine manufacturing to EV manufacturing, more workers were needed, sometimes by a factor of ten. Over time, more efficiencies were put in place, but the study found an EV plant “ramp-up” period can take 15 years with those additional jobs.
In addition, the labor required for battery assembly for EVs can add another 50% labor intensity. So, for every two workers needed to assemble an EV, another worker is needed to assemble the battery. Policies will be important in ensuring that EV jobs stay local. Onshoring battery and EV manufacturing during the transition to electric transportation will be important to the future of auto manufacturing in the U.S.
Electric Vehicles and Highway Funding
Since EVs don’t pay gas taxes, how will roads be maintained?
Regardless of what you drive, all drivers want smooth, safe roads and bridges. Currently, gas drivers pay a tax on every gallon of gasoline they buy that supports road maintenance and upgrades. EV drivers want to pay their fair share. States have taken different approaches to collecting funding from EV drivers, such as additional registration fees for EVs and mileage-based user fees for EV drivers. Plug In America has developed a position on road user fees to encourage fair and adequate highway funding.
EV Batteries
Are EV batteries made with child labor?
Child labor has been associated with small-scale mining for the mineral cobalt in the Democratic Republic of the Congo. Because minerals from different mining operations are mixed together in the supply chain, it is very hard to separate out which batteries are made with ethically sourced minerals. To address this, digital battery identifiers are being created to track battery minerals and introduce more transparency to the battery supply chain. In addition, newer battery chemistries such as Lithium Iron Phosphate (LFP) batteries do not contain cobalt. LFP batteries are currently available in some Ford and Tesla models and will soon be available in vehicles manufactured by GM, Rivian, and BMW.
Isn’t mining for the minerals in EV batteries bad for the environment?
Mining will continue with or without EVs. We extract minerals from the earth for thousands of everyday applications, like construction products (including glass, pavement, and wiring), steel manufacturing, electric motors, velcro, plastics, and even toothpaste.
The transition to battery-powered vehicles creates an opportunity to take a close look at mining laws, which haven’t been updated since 1872, and change them to protect mining-adjacent communities and the environment. Because the minerals in EV batteries are highly recyclable, and the batteries can be reused or repurposed, minerals only have to be mined once and can then be used over and over again in new EV batteries. This is unlike relying on fossil fuels, which requires endless exploration, drilling, extraction, refining, and burning–all of which are dangerous to workers, the health and safety of adjacent communities, and the environment.
Can EV batteries be recycled?
Yes! Being able to recycle EV batteries is one of the coolest things about them. EV battery minerals can be recycled almost infinitely without losing power. According to Redwood Materials CEO J.B. Straubel, the metals in batteries don’t change or degrade, so the materials from old batteries can be made into new batteries without any tradeoffs in performance or battery life. Many U.S.-based lithium-ion recycling companies report a material recovery rate of 95% to 98%.
More than 6.1 million EVs have been sold in the U.S. as of November 2024. EV sales continue to grow, so demand for battery minerals will continue to rise. While mining alone could meet this demand, recycling can support a large share of these minerals.
Will EV batteries end up in landfills?
No, though we need clear policies to guide our handling of batteries once they reach the end of their life in a vehicle. The energy stored in EV batteries is far too valuable to be discarded. At the end of their useful life as traction batteries (that’s a fancy term for batteries that move vehicles), EV batteries still have lots of life left in them–almost 80% of their original capacity.
EV batteries on their “second life” can store electricity in homes and businesses or be combined in battery banks to store electricity for utilities. They can support renewable electricity generation and store solar and wind energy for when the sun isn’t shining and the wind isn’t blowing. They can also provide energy arbitrage, which means they can store electricity when it is cheap and make it available for use when electricity is expensive. This can reduce the cost of electricity for a utility or a customer. These batteries can also be used for grid or home resilience during power outages and storms.
Energy Security
Can you charge EVs with solar panels?
EVs can benefit from local solar generation. In fact, EV drivers are three times more likely to have solar panels than non-EV drivers. Most solar systems are net-metered, so the excess power they produce goes back into the grid, while some solar-powered EV chargers feed directly into vehicles. Other systems rely on batteries to store solar electricity, which can then be used to charge an EV.
Can EVs make the electric grid more secure and resilient?
Yes. Traditionally, the U.S. electric system was powered by massive power plants that produced electricity in a centralized location. This electricity was carried by transmission lines for hundreds of miles to local utilities that delivered power to homes and businesses. Today, distributed energy resources (DERs) generate electricity on a smaller, more localized scale. This makes the grid more resilient in two ways. Decentralizing energy generation means that if a natural disaster or attack damages part of the system, other areas will still have access to power. An EV can also store electricity in its battery and, through bidirectional charging, provide power to a home or business in the event of a power outage.
Since the U.S. became a net exporter of petroleum, how do EVs improve U.S. fuel security?
The transportation sector still accounts for about 66% of U.S. petroleum consumption and because the U.S. imports and exports oil, it is still subject to highly volatile global markets. Since EVs don’t use gasoline, they reduce U.S. dependence on fossil fuels. Plugging into the U.S. grid diversifies U.S. transportation energy to renewables and other domestic sources. This protects markets from embargoes, shortages, and political conflicts. It also protects drivers from price volatility at the pump.
Safety
Do EVs catch fire in hurricanes?
All vehicles can be damaged when exposed to flooding. If an EV is submerged in salt water, corrosion can allow the salt water to penetrate the battery and, in rare cases, start a fire. Of the 3,000-5,000 EVs impacted by Hurricane Ian in 2022, only about 1% caught fire. Accidental immersion at saltwater boat ramps has a similar effect but happens rarely.
Saltwater EV fires can largely be avoided by evacuating the storm path, parking the EV in an area safe from the storm surge (such as on the upper levels of a parking garage or inland area), and storing your vehicle with a 20% to 30% charge level, which reduces the energy in the battery and makes it less likely to catch fire. If there are signs an EV might have been submerged in saltwater, drivers should avoid driving the vehicle and get the car tested by trained technicians.
Can I evacuate in an EV during a natural disaster?
Absolutely. As with any natural disaster, preparation is key. Pay attention to the news, make sure you have a full charge, and don’t wait to evacuate. Most modern EVs have ranges over 250 miles, which is more than enough to get out of harm’s way in most disasters without having to charge.
Unlike gas cars, which waste half a gallon of gas per hour while idling in traffic situations, EVs use very little battery power to regulate cabin temperature and are likely to outlast gas cars in heavy traffic. A Ford Mustang Mach-E driver spent 12 hours idling in his EV while the outside temperature hovered around 18 degrees Fahrenheit. He kept the car above 70 degrees inside and after 12 hours, he still had a 75% charge.
Evacuations typically take place before power outages, so EVs can skip the lines at the gas station and charge along the way. If you are not in a flood zone and decide not to evacuate, some EVs that have bidirectional charging can be used to power your home if the power goes out. Here is one driver’s story.
Do electric cars catch fire more than gas-powered vehicles?
No. EVs have a better fire safety record than gas cars. Under all circumstances, EV fires are less likely than fires in gas vehicles. Comprehensive studies in Australia and Sweden show that a gas car is at least 20 times more likely to catch fire than an EV.
EV fires get a lot of press, even though gas car fires are much more common. Part of the increased media coverage about battery fires in EVs may be due to the novelty of electric cars, and part of it is because battery fires behave differently than gas fires. The National Fire Protection Association offers online and in-person training on extinguishing lithium-ion battery fires for firefighters and recently added a Department of Energy-funded EV fire simulator available to firefighters.
In addition, new EV battery chemistries that are gaining in popularity–including Lithium Iron Phosphate (LFP) batteries currently available in some Ford and Tesla models–are even less likely to catch fire. This means that in the future, EV batteries will be even safer than they are now and will continue to prevent the deaths and injuries from more common gas vehicle fires.
Local and Community Benefits
Do EVs keep money in the local economy?
Absolutely. Buying electricity from your local electric utility keeps dollars in the local economy, providing jobs and economic opportunities where you live and drive. The U.S. Energy Information Administration reports that more than 80% of the cost of each gallon of gas immediately leaves your local (and often state) economy. Not spending money at the pump keeps more money in drivers’ wallets, creating more opportunities to support local businesses.
Is driving an EV better for my health than driving a gas vehicle?
Yes! EVs improve personal and public health by reducing toxic tailpipe pollution. In fact, fossil fuel pollution is responsible for one in five deaths worldwide. Transportation emissions are the main source of air pollution in the U.S., leading to health problems like heart attacks, stroke, premature death, low birth weight, and cancer. High-traffic areas are often located near low-income communities and communities of color, meaning that tailpipe pollution disproportionately affects these communities. Increasing use of EVs is positively impacting local air pollution levels and reducing emergency room visits in areas where they are registered.
Environmental Impact
Do EVs generate less air pollution than gas cars when factoring in electricity generation from power plants?
Yes because electric vehicles produce no tailpipe emissions. Gas-powered cars, trucks, and SUVs are responsible for 57% of transportation emissions in the US. A typical passenger vehicle emits about 4.6 metric tons of carbon dioxide per year.
In addition to carbon dioxide, cars powered by gasoline produce other greenhouse gases like methane and nitrous oxide. While the electricity used to charge EVs can generate emissions, electricity generation in the U.S. continues to get cleaner, and driving an EV today is cleaner than driving a gas car in nearly every part of the country. As we continue to shift to more renewable energy sources like wind and solar to generate electricity, instead of coal and methane gas, we can lower the total greenhouse gases associated with EVs even more.
Are EVs better for the environment?
Absolutely. Over the course of their lifetimes, EVs generate less than half of the greenhouse gas emissions of comparable gasoline-powered vehicles. This includes all of the resources used in manufacturing the vehicle and battery, and powering the vehicle.
Additionally, electricity in the U.S. keeps getting cleaner, meaning that these benefits will continue to grow in future years. Batteries can be reused for other purposes, and the minerals in batteries can be recycled almost infinitely. As EV manufacturing and battery technology continue to improve through innovative technologies, EVs will become more efficient to manufacture and operate. EVs are good for the environment now and will continue to get even better.
Reliability
Will I have to replace my EV battery?
The chances are low, since most EV batteries will outlast the vehicles they were installed in. Of EVs on the road since 2016, less than 1% have needed battery replacements, and battery technology continues to improve. In fact, even after 15 or 20 years, EVs often have 60%-70% of their charge capacity left. Plus EVs have battery warranties of at least 8 years or 100,000 miles, whichever comes first. An EV battery that loses 30% or more of its range in this window would be replaced under warranty.
Recurrent conducted a study of high-mileage EVs and of 100 EVs with over 177,000 miles, only six have had battery replacements. Of the 15 EVs with the highest mileage in the study (all with over 250,000 miles), not one has needed a battery replacement.
Are plug-in vehicles reliable?
Yes. Because EVs have fewer parts than gas vehicles, there are fewer things to break down and need repair. An EV has an electric motor instead of an engine; it doesn’t have a transmission system or an exhaust system and it doesn’t require oil or any mechanical fluids. Overall, EVs require much less maintenance and rarely require service.
The single largest indicator of an EV’s reliability is its electric motor and battery. As we see more high-mileage EVs on the road, we are finding that batteries are lasting much longer than expected. In fact, most EV batteries will outlast the vehicles they were installed in. Even after 15 years or 20 years, EVs often have 60%-70% of their charge capacity left.
EV Incentives
Where can I find EV incentives?
Start by taking a look at our All EV Incentives tool on PlugStar.com. Your eligibility for incentives is in part determined by your ZIP code. We show you federal, state, and local incentives, but also encourage you to check with your city, county or parish, and electric utility, as entities create incentives every day. If you already have a specific EV in mind, use our Vehicle Incentives tool.
How do EV incentives work?
Each incentive works differently, so it’s important to check the eligibility criteria from the offering entity. For example, the federal EV tax credit has income requirements and vehicle requirements. While your income may qualify for the federal tax credit, you must make sure the EV you want to lease or buy does, too.
The best thing about EV incentives is that they are stackable. For instance, you may be able to get the $4,000 federal used EV tax credit, a state incentive, and a rebate from your electric company to install a home charger. In some places, drivers can get $15,000 off of the price of a new EV. So, before you purchase, make sure to check our incentive lookup tool to find out which incentives will work for you.
Note: Some incentives, particularly at the state level, are so popular that they run out of funding quickly. This is why we strongly recommend reading about each incentive on the offering entity’s website, which we provide through our incentive lookup tool.
What do EV incentives cover?
Incentives cover vehicle purchases or leasing for both new and used cars, home charging equipment and installation, electricity plans, and intangible benefits such as driving in the HOV lane.
What types of EV incentives are there and who offers them?
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.
What are EV incentives and why do they exist?
EV incentives are a lever policymakers and other stakeholders use to encourage EV adoption. Incentives are not unique to the EV industry. Governments and other entities have provided them in the past for all sorts of reasons such as stimulating the economy and increasing job creation.
Entities are offering EV incentives because gas cars produce toxic pollution, which causes harmful medical conditions and creates extreme heat and wildfires. These health and environmental impacts cost billions of dollars and disrupt business. Policymakers understand our communities will benefit tremendously from the transition to EVs, which will lower health costs, save consumers money, keep dollars in the local economy, and address the climate crisis.
Affordability
How do EV maintenance costs compare with maintenance costs for a gas car?
A recent study by Consumer Reports on repair and maintenance data from thousands of drivers shows that EV drivers pay about half of what drivers of fossil-fuel-powered vehicles pay for maintenance and repairs. EVs require less maintenance because they have far fewer moving parts, and EV batteries don’t require any maintenance. This means no oil changes, transmission fluids, radiators, exhaust systems, catalytic converters, or mufflers. Not only does this save you money, but it’s much more convenient and saves you time that would otherwise be spent waiting for your car to be serviced.
How do EV warranties compare with gas car warranties?
EVs have better warranties than gas cars. The average gasoline vehicle’s powertrain warranty is 5 years or 50,000 miles. EV batteries and drivetrains are protected for 8 years or 100,000 miles. Many battery warranties are transferable to subsequent vehicle owners, although we encourage you to confirm this for your particular vehicle prior to purchase.
As more used EVs become available on the market, not only will they save their second (or third or fourth) owners money on maintenance and repair costs, but they are also likely to outlast comparable gas vehicles. A 2023 study of 15,000 EVs by Recurrent Auto found that with the exception of a couple of manufacturer recalls, only about 1.5% of the EVs in their sample underwent battery replacements, most of which were covered under warranty. The study also found that most EVs driven around 100,000 miles still had 90% of their original range.
What should I know about buying a used EV?
Used EVs are a great, affordable way to experience the benefits of driving electric: smooth acceleration, quiet ride, fuel and maintenance savings, and no tailpipe pollution. Used EVs reached price parity with gas cars in 2024 and generally had lower mileage and more remaining warranty.
If you are shopping for a used EV, we recommend you obtain a battery health report before you purchase. As with any car, it’s a good idea to get the car checked by a professional before purchasing.
Since there are fewer moving parts, there are fewer things to break on an EV. Federal EV incentives of up to $4,000 for qualifying used EVs are also available for income-eligible buyers. These incentives can sometimes be stacked with state and utility incentives. Many used EV models are now available to consumers, and the number continues to grow!
How much does it cost to charge an electric vehicle?
Generally speaking, powering a car with electricity costs about half of what it costs to power a gasoline car with average gas mileage. However, it depends on how much you pay for electricity. Because EVs are much more energy-efficient than gas cars, the cost of charging an electric car is likely to be significantly less than the cost of refueling a gas-powered car.
Charging an electric car at home is typically the most affordable option, and costs can drop even more if a customer’s electric utility offers low rates for EVs or time-of-use plans that allow EV drivers to take advantage of lower rates during certain periods of the day. Using a public fast charger will generally be more expensive because the short time to deliver the charge requires specialized equipment. You can estimate charging costs based on your local utility rates and driving habits on PlugStar.com, our brand-neutral EV shopping tool.
Are EVs cheaper than gasoline vehicles?
EV drivers will typically save between $6,000 and $10,000 over the life of the vehicle. Currently, the upfront purchase price difference between a comparable EV and a gas car is a few thousand dollars, but this gap is rapidly closing. Since EVs cost less to own and operate, most EV drivers will quickly make up the difference.
EVs are also two times to four times more efficient than gas cars. This means that they require much less energy to power. This translates into EV drivers saving 60% to power an EV compared to gas cars. EVs also require far less maintenance and cost about half as much to maintain.
In addition, federal incentives of up to $7,500 are available at the time of sale for qualifying EVs and buyers. These incentives can usually be stacked with state and utility incentives, bringing the starting price of an EV to well below that of a gas car. Depending on your electric utility, you may also be able to save money by setting your car to charge at off-peak rates, which can bring your fueling rate to the equivalent of paying less than $1 per gallon.
Driving Experience
Do EVs come in all-wheel drive (AWD) or four-wheel drive (4WD) models?
Yes. More than 45 EV models, including sedans, SUVs, trucks, and sporty coupes, come in AWD configurations. As for 4WD, some available EVs allow you to switch in and out of 4WD mode. However, due to current EV drivetrain technology, some new AWD EVs perform similarly to 4WD EVs in off-road environments. Learn more at PlugStar.com. Additional electric vehicles are introduced every year, so expect to see more on the market.
Do EVs have enough range to meet my daily driving needs?
Most people think they drive more miles each day than they actually do. In an average one-vehicle household, daily vehicle miles traveled is about 50 miles. The average range of model year 2023 EVs is 270 miles.
For the vast majority of households and families, an EV will have more than enough range for daily driving. In fact, you may only need to charge once or twice a week. Most EV drivers plug in their cars overnight, allowing them to wake up to a full battery or “full tank” each morning. For the infrequent occasions when a long-distance drive is needed, the drive can be done with fast charging along freeways.
Are there electric vehicles on the market that can tow?
As of fall 2024, at least 7 all-electric pickup trucks have towing capabilities. Towing does reduce an electric vehicle’s range, so it is important to factor that into your towing and travel plans. The technology continues to improve rapidly, and more electric pickups are in the pipeline for future release. See available EVs with towing capacity on PlugStar.com.
Are electric cars better to drive?
Many electric car drivers will report that they offer a more enjoyable driving experience, due to the smooth, quiet ride and instant acceleration. EVs handle well because they have a low center of gravity, thanks to battery placement. Many drivers find the lack of noise and vibration that characterize EV driving make for a more comfortable ride and less driver fatigue. While driving experience is subjective, we asked thousands of respondents in Plug In America’s EV Driver Survey and each year 9 out of 10 say it is likely their next vehicle will be electric.
Charging
Do I have to have a home charger to drive an electric vehicle?
If you have access to home charging, driving and charging an EV is very similar to charging a cell phone. You typically plug it in when you get home, and it charges while you go about your business. You can also schedule your charging for overnight and you may be able to benefit from discounted electric rates from your electricity provider.
If you do not have home charging through a normal outlet or a Level 2 home charger, you will need to use workplace or public charging to charge. This tends to be more expensive than home charging (although typically still less than paying for gasoline) and less convenient. That being said, most EV drivers still love their EVs and 9 in 10 EV drivers say they wouldn’t go back to gas. Plug In America is working on several fronts to ensure that public charging is accessible and affordable for all EV drivers.
What are the EV charging levels?
There are three types, or levels, of EV charging. Level 1 charging is the slowest and is done when your vehicle is plugged into a standard 120-volt outlet that you would plug a phone or toaster into. Level 2 charging is faster and requires a 240-volt outlet, which is similar to a dryer or oven. DC Fast Charging or DCFC (sometimes referred to as Level 3 charging) is the fastest charging option and is typically used for road trips or by drivers without home charging. Learn about the EV charging levels in this guide.
Will DC fast charging degrade my battery faster?
DC fast charging is slightly more taxing on an EV battery than Level 1 or Level 2 charging but it is not something to worry about. While all batteries experience some degradation over time, using DC fast charging in moderation is unlikely to have noticeable negative effects on your battery. There are situations that put more stress on an EV battery. For example, fast charging during extreme states of charge (when the battery is at less than 5% or trying to charge over 90%) can stress the battery. Similarly, fast charging a very hot or cold battery can degrade it faster and should be avoided, if possible. Luckily some vehicles “precondition” the battery when they are on their way to a fast charger to get the battery to the optimal temperature for charging, maximizing efficiency.
How do I install a Level 2 charging station at home?
On our brand-neutral home charger section on PlugStar.com, you can compare charging stations to determine the home charger that is right for you. Once you find a charger that best fits your needs, we recommend contracting with a licensed electrician to install your charging station. You can find a nearby qualified electrician based on your ZIP code.
For installation purposes, a licensed electrician will need your charger’s model number and plug type. This will let the electrician know what amperage panel is needed to support your charger’s power requirements. Chargers deliver a high level of electricity for several hours every day, so it is extremely important that they are installed correctly.
If you live in a qualifying census tract, you can get up to 30% (up to $1,000) off of the cost of installing a charger (including charger, labor, installation, panel upgrades, wiring, and conduit) through the 30C federal tax credit. In addition, many utilities and state/local governments offer incentives for installing charging stations. Visit PlugStar.com/incentives or contact your local electric utility for more information.
How long does it take to charge an electric vehicle?
The vast majority of EV charging is done at home, overnight (just like your cell phone), which makes the speed of charging largely irrelevant. There are also hundreds of thousands of public charging stations across the country, with more being added every day. Many of these are at stores or restaurants, so you can charge while shopping or dining.
There are a few different factors that determine how long it takes to charge an electric car. To be more technical, the time to full recharge depends on:
- The model of the vehicle and how big the battery pack is
- The type and “level” of charging station
- How much charge is left in the battery when it is plugged in
- The ambient, or outside, temperature
Different types of charging require different levels of chargers. If you charge overnight, you can usually meet the miles needed for a daily commute by plugging directly into a 120-volt outlet in the wall. (Yes, the same kind you’d plug your cell phone into.) This can add about 40-50 miles of range overnight.
Level 2 chargers can usually add between 20 miles and 45 miles of range per hour of charging. Many EV drivers have a Level 2 charger installed at home. You can also find Level 2 chargers at common destinations such as shopping centers, movie theaters, and workplaces. DC Fast Chargers (DCFC) can add hundreds of miles in an hour and can often refill an EV battery to 80% of charge in about 20 minutes. These are often found along highways and near convenience stores and gas stations.
How and where do you charge an electric car?
Most EV drivers today charge their cars using a Level 1 or Level 2 charger overnight at home in a garage, carport, or driveway. Some take advantage of workplace chargers. Those that do not have access to a charger at home rely on workplace or public chargers to power their EVs.
Commercial EV Tax Credit
What is incremental cost, and will that affect the amount of the tax credit?
The incremental cost is the cost difference between the new clean vehicle and a comparable new gas-powered (ICE) vehicle. The Department of Energy conducted a study that found that all EVs would have an incremental cost of at least $7,500 for 2023. The only exception is compact Plug-In Hybrid Electric Vehicles (PHEVs), which would have the tax credit capped at $7,000. The IRS issued a safe harbor notice for 2023 that all EVs have an incremental cost of at least $7,500 except compact PHEVs, which have an incremental cost of $7,000.
For vehicles weighing over 14,000 pounds, the tax credit is $40,000. This tax credit applies to medium- and heavy-duty vehicles like school buses and garbage trucks. Once the cost difference between the electric version of these vehicles and the gas or diesel version of these vehicles is less than $40,000, the incremental cost will be the value of the tax credit.
We will continue to update these numbers each year. As the purchase price of an EV gets closer to the cost of a comparable gas-powered vehicle, this number will eventually equal zero, meaning leases will no longer be eligible for this tax credit.
It is important to note that over the vehicle’s life, EVs typically cost less because they require less maintenance, are more efficient, and cost less to power. In addition, electricity prices are very stable over the long term, meaning that they are budget-friendly and aren’t subject to the same price volatility as gas. Read more about total cost of ownership.
Can non-taxable entities like nonprofits, cities, or governments with fleets get the commercial tax credit?
Yes, the Commercial Clean Vehicle Tax Credit, also known as Internal Revenue Code 45W, is refundable (or direct pay) for tax-exempt entities like nonprofits or governments (i.e., cities or counties). This means that tax-exempt entities can claim and receive the tax credit even though they don’t pay any taxes. The IRS treats the tax credit as if it were an overpayment of taxes and refunds the money to the tax-exempt entity even though no taxes were paid.
Leasing EV Tax Credit
What is incremental cost, and will that affect the amount of the tax credit?
The incremental cost is the cost difference between the new clean vehicle and a comparable new gas-powered (ICE) vehicle. The Department of Energy conducted a study that found that all EVs would have an incremental cost of at least $7,500 for 2024. The only exception is compact plug-in hybrid electric vehicles (PHEVs), which would have the tax credit capped at $7,000. The IRS issued a safe harbor notice for 2024 that all EVs have an incremental cost of at least $7,500 except compact PHEVs, which have an incremental cost of $7,000.
We will continue to update these numbers each year. As the purchase price of an EV gets closer to the cost of a comparable gas-powered vehicle, this number will eventually equal zero, meaning leases will no longer be eligible for this tax credit.
It is important to note that over the life of the vehicle, EVs typically cost less because they require less maintenance, are more efficient, and cost less to power. In addition, electricity prices are very stable over the long term meaning that they are very budget-friendly and aren’t subject to the same price volatility as gas. Read more about total cost of ownership.
If I am leasing an EV and at the end of my lease I purchase the vehicle from the dealer, will the used vehicle purchase tax credit apply?
IRS Guidance FS-2023-29 indicates that “original use” with regard to leases is, “where a vehicle is acquired for lease to another person, the lessor is the original user.” This means that the finance company, which actually owns the vehicle, is the original user.
Since the original use would be the lessor (owner of the vehicle), we understand this to mean that the finance company would be the original use, and the lessee (person leasing the vehicle) could buy the vehicle as a used vehicle using the tax credit, as long as the vehicle and buyer meet other eligibility requirements.
Used EV Tax Credit
Does the amount of the used EV tax credit depend on whether a vehicle is all-electric or plug-in hybrid electric?
No, both all-electric vehicles and plug-in hybrid electric vehicles are eligible for the full $4,000.
Does the vehicle purchase price for the previously owned Clean Vehicle Tax Credit depend on the type of vehicle purchased, such as a van, pickup truck, SUV or other vehicle?
No, all previously owned clean vehicles are eligible for a tax credit of up to $4,000 or 30% of the vehicle sales price, whichever is less.
If a vehicle has already received a tax credit when it was purchased as new, is it eligible for the used tax credit?
Yes. A vehicle is limited to one credit per vehicle for each type of credit, meaning that a vehicle can receive the tax credit as a new vehicle and again as a used vehicle for a different owner.
Do I have to purchase the vehicle from a dealer?
Yes, to be eligible for the tax credit, the vehicle must be purchased from a dealer registered with the IRS.
Can businesses receive the previously owned clean vehicle tax credit?
No, only individuals can receive the previously owned clean vehicle tax credit.
How much is the used EV tax credit?
The previously owned clean vehicle tax credit can be up to $4,000 or 30% of the vehicle sales price, whichever is less.
EV Tax Credit Transferability
Do I still need to meet the income limits if I transfer the tax credit to a dealer?
Yes. If you transfer the tax credit, you need to sign a document attesting that you expect that your income did not exceed the income limits either last year or this year. If your income exceeds the limits for both of those years, you will be required to repay the amount received for transferring the tax credit to the IRS in addition to your normal taxes.
Can I access the upfront tax credit from a direct-to-consumer manufacturer?
The transferable tax credit applies if you buy a vehicle from a direct-to-consumer manufacturer, such as Tesla, Rivian, or Lucid. The definition of “dealer” in the statute is an organization licensed in a state or territory to sell vehicles. The new guidance goes further to state, “To allow for flexibility, especially in the case of direct-to-consumer sales, the proposed definition of dealer includes a dealer licensed in any jurisdiction described in section 30D(g) (other than one exclusively licensed in a U.S. territory) that makes sales in jurisdictions in which it may not be licensed.”
If you meet the buyer income limits and the vehicle meets the tax credit requirements, you can purchase from a direct-sales EV manufacturer (online, if necessary) and receive the tax credit upfront.
Can I transfer the tax credit on more than one EV?
Each taxpayer can transfer two EV tax credits per year. This can be two new clean vehicle tax credits, OR it can be one new clean vehicle tax credit and one used clean vehicle tax credit. In the case of those filing joint returns, each person may transfer two tax credits per year as described in the last sentence. So, a household filing jointly can transfer up to four clean vehicle tax credits each year.
Do I need to transfer my tax credit to the dealer?
No, you do not need to transfer your tax credit to the dealer. If you want to wait for the tax credit and receive it as a tax refund when you file your taxes next year, you can do that.
If I get my tax credit at the time of sale, will I still need to pay taxes?
You still have to file your tax return and file Form 8936 with your Vehicle Identification Number (VIN). The dealer will give you the necessary paperwork at the time of sale for Form 8936. Be sure you receive a successfully submitted seller report before you leave the dealership. Download our EV Shopper Checklist to help you at the dealership.
Does the dealer need to have tax liability to participate in the credit transfer?
No. The dealer does not need to have tax liability to receive the transfer. The dealer simply acts as a pass-through for transferred tax credits. The dealer is required to pass the full amount of the tax credit on to the buyer.
Do I need to have tax liability to receive the upfront tax credit?
No. You can still get the full amount of the tax credit if you transfer your tax credit to the dealer. Historically, many tax credits haven’t been accessible to lower-wealth individuals and households because lower earnings mean lower tax liability. Because the EV tax credits are transferable, the EV buyer no longer needs to have tax liability to access the credit.
What does it mean that the new and used EV tax credits are transferable?
It means that when you purchase an eligible electric vehicle (EV) or plug-in hybrid electric vehicle (PHEV) and you meet the income requirements, you can choose to transfer your tax credit to a registered dealer and get the FULL amount of the tax credit upfront as a reduction on the price of the vehicle.
For NEW vehicles: Depending on the vehicle, you could get $3,750 or $7,500 off of the purchase price at the time of the sale. This money can also be used as a down payment on the vehicle.
For USED vehicles: Depending on the vehicle, you could get $4,000 off of the purchase price at the time of the sale. This money can also be used as a down payment on the vehicle.
New EV Tax Credit
Does the amount of the new EV tax credit depend on whether a vehicle is all-electric or plug-in hybrid electric?
No, both all-electric vehicles and plug-in hybrid electric vehicles are eligible for the tax credit based on whether their batteries meet the critical minerals requirements and the battery component requirements.
If I ordered a vehicle in 2023 and it was delivered in 2024, does the Foreign Entities of Concern rule apply?
Yes, the tax credit guidance is based on when the vehicle is placed in service, so if you take delivery of your vehicle in 2024, the guidance at the time you take delivery of your vehicle will apply. FuelEconomy.gov provides updated information on vehicle eligibility.
Are vehicles made by manufacturers that have sold over 200,000 vehicles eligible for the new clean vehicle tax credit?
Yes. As of Jan.1, 2023, the prior sales volume limits no longer apply. This means GM and Tesla vehicles are eligible for the tax credits if they meet the other eligibility requirements.
Can I get the tax credit by leasing a new clean vehicle?
If you lease a vehicle, the lessor (company that maintains the vehicle title) is the original user. This means that they will claim and receive the tax credit, but they can pass it along to the lessee (you, the customer) in your lease payments. When negotiating your lease terms, simply ask if they are willing to lower your deposit or monthly payments in an amount equal to the tax credit. The lessors receive the tax credit through the Commercial Clean Vehicle Tax Credit.
What is a qualified manufacturer?
A qualified manufacturer is a manufacturer that enters into a written agreement with the IRS. A list of qualified manufacturers is maintained by the IRS and can be found here.
How do I know whether my vehicle will be defined as a truck, van, SUV or other type of vehicle for the purposes of the MSRP cap?
The vehicle’s classification will be displayed on the window sticker of the vehicle as well as online. FuelEconomy.gov pre-screens which vehicles are eligible for the tax credit. Visit the site, select the delivery date and it will show you which vehicles are eligible for the credit and how much they are eligible for. It takes the guesswork out of determining vehicle eligibility for the tax credits.
How do I determine if the vehicle I want meets the MSRP cap?
The MSRP is the base retail price suggested by the manufacturer, plus the retail price suggested by the manufacturer for each accessory or item of optional equipment physically attached to the vehicle at the time of delivery to the dealer. It does not include destination charges, optional items added by the dealer, or taxes and fees. The MSRP caps for the new clean vehicle tax credit are as follows:
- Vans / SUVs / Pickup Trucks – $80,000
- Other – $55,000
If the vehicle arrives at the dealer and the MSRP on the sticker is below the cap for that vehicle, it should be eligible for the tax credit as long as the other Clean Vehicle Tax Credit requirements are met.
Are the income limits talking about gross income or something else?
The income limits are based on Modified Adjusted Gross Income. According to the IRS, your modified AGI is the amount from line 11 of your Form 1040 plus:
- Any amount on line 45 or line 50 of Form 2555, Foreign Earned Income.
- Any amount excluded from gross income because it was received from sources in Puerto Rico or American Samoa.
What if you expect your income to be different this year than last year?
You will qualify based on the Modified Adjusted Gross Income (MAGI) which is the lesser of the two years. For example: You are a single filer and had a MAGI of $145,000 in 2023 but expect to make $155,000 in 2024. The single-filer limit is $150,000. Your MAGI for 2023 is the lower of the two years, and that is what you will use to determine if your income qualifies. Since one of the years is below the $150,000 threshold, your income qualifies for the tax credit.
Which year are the income limits for?
To qualify for the tax credit, your Modified Adjusted Gross Income (MAGI) must be below the threshold amount for the current taxable year or the preceding year. For example, if it is 2024, then you need to meet the income limits in either 2023 or 2024.
Does this guidance apply to when I ordered the vehicle or when I received it?
The guidance applies to the day you receive your vehicle, not when you order it or put a deposit on it. For example, if you ordered your EV in 2023 and you pick it up in May of 2024, you would follow the guidance that applies in May of 2024 when you take delivery of the vehicle.
What time period does the information on this page cover?
This page covers the time period beginning on January 1, 2024, and onward. This guidance and the list of eligible vehicles will continue to change, so check https://fueleconomy.gov frequently. If you received your car before January 1, 2024, find the correct resource page linked at the top of this page.
How much is the tax credit?
The tax credit is made up of two components. The vehicle is eligible for $3,750 if it meets the critical minerals requirements and $3,750 if it meets the battery components requirement. If it meets both of these requirements, it is eligible for a $7,500 tax credit. If it meets one of these two requirements, it is eligible for a $3,750 tax credit. If it doesn’t meet either of these requirements, the vehicle is not eligible for any federal tax credit.
Electric Vehicle Basics
What is an electric vehicle (EV)?
An electric vehicle is a vehicle that is powered entirely or partially by electricity using an electric motor instead of an internal combustion engine. EVs store power in a battery that can be charged from an external power source using a plug.
There are two types of EVs:
- An all-electric vehicle (sometimes called a battery-electric vehicle or BEV) is powered solely by electricity.
- A plug-in hybrid vehicle (PHEV) can run solely on electricity stored in a battery up to a point. Once the battery runs out of power, a gasoline engine provides power to run the vehicle.
Sometimes, people get confused and think that a hybrid vehicle is an electric vehicle, but it is simply a more efficient form of a gas vehicle. These hybrids are typically called “traditional hybrid vehicles.” You can distinguish a hybrid from a plug-in hybrid by whether the vehicle can be plugged in.
