State EV Incentives by State (2025)

State incentives on top of the federal credit

In addition to the federal §30D credit, many states offer their own EV incentives — rebates, tax credits, reduced registration fees, HOV lane access, and utility rate discounts. Stacking state and federal incentives can significantly reduce the effective cost of an EV.

Top states for EV incentives

California: The Clean Vehicle Rebate Project (CVRP) offers up to $7,500 for lower-income buyers and $2,000 for standard buyers. The Clean Air Vehicle (CAV) sticker provides HOV lane access. Additional utility rebates are available from PG&E, SCE, and SDG&E.

Colorado: A state tax credit of $5,000 for new EVs, stackable with the federal credit. Income limits apply.

New York: The Drive Clean Rebate offers up to $2,000 at the point of sale for EVs with MSRP under $60,000.

New Jersey: Exempts EVs from the 6.625% state sales tax — a significant savings on a $45,000 vehicle.

Massachusetts: MOR-EV rebate of up to $3,500 for EVs with MSRP under $55,000.

States with no additional EV incentives

Several states offer no state-level EV incentives beyond the federal credit: Alabama, Alaska, Arkansas, Hawaii, Idaho, Indiana, Iowa, Kansas, Kentucky, Louisiana, Mississippi, Missouri, Montana, Nebraska, North Dakota, Oklahoma, South Dakota, Tennessee, Texas (limited), West Virginia, and Wyoming.