A federal income tax credit up to $7,500 is available for the purchase of a qualifying electric vehicle. The minimum credit amount is $2,500, and the credit may be up to $7,500, based on each vehicle's battery capacity and the gross vehicle weight rating. Your eligibility for income tax credits depends on your personal tax situation. We recommend speaking with a tax professional for guidance.

The credit begins to phase out for each vehicle manufacturer once they have sold 200,000 eligible electric vehicles in the United States (as counted from January 1, 2010). The IRS will announce when a manufacturer exceeds this production volume and will announce the subsequent phase out schedule on the IRS website.

The federal government offers a tax credit for EV charger hardware and EV charger installation costs. It covers 30% of the costs with a maximum $1,000 credit for residents and a $30,000 federal tax credit for commercial installs. And it’s retroactive, so you can still apply for installs made as early as 2017.

As of August 1, 2019 Washington State provides a sales and use tax exemption on sales or leases of certain electric passenger cars, light duty trucks and medium duty passenger vehicles – including used.