Tax Incentives For Electric Cars

photo used with permission from morgueFile Free License

Federal tax credits and state tax incentives are becoming available for those shopping for an environmentally friendly vehicle.

A $7,500 federal tax credit is available for purchases of a plug in car.

California residents can get up to a $5,000 tax rebate plus access to carpool lanes when they buy a zero emissions vehicle. Some local areas in California offer free parking for these vehicles as well as additional incentives and tax breaks.

For Hawaii residents, 20% of the purchase price of the vehicle can be claimed by rebate, up to $4,500. Additional rebates are available if a charging station is also purchased.

Residents of Colorado can get a tax credit on the purchase of a charger of up to 20% and the qualifying vehicle offers a credit up to $6,000.

Carpool lane access is offered to Georgia residents who purchase electric vehicles, as well as up to $5,000 income tax credit with an additional charging equipment purchase tax credit of 10%.

So, before you decide that you can’t afford an electric car to accompany your environmentally responsible lifestyle, check out the tax incentives in your area.

Be aware that all plug in cars do not qualify as a zero emissions vehicle, but companies are working on engineering of vehicles to qualify them for the benefits now being offered.