While several electric vehicles that cost less than $35,000 in 2018, only one model below $40,000 offers more than 200 miles per charge. That makes new EVs either not practical or out of the reach financially for most customers on the market.
By early 2019, that situation should change with new models by Hyundai and Kia coming to the U.S. Yet this new wave of EVs will continue to cost more than comparable vehicles powered by gas.
Fortunately for consumers, the federal tax credit of $7,500 can still be taken on most EVs through 2019. (The Tesla Model 3 is one exception.) Meanwhile, many states are offering either rebates or tax credits on top of that amount. That allows many consumers to subtract $10,000 or more from the purchase price of an EV.
Here are the states who offer the most money on top of the federal EV tax credit in 2018, whether in rebates or further tax credits. Most states also offer these incentives for plug-in hybrids.
(Note: Be sure to check on the current status in your state before making purchase decisions, as there are deadlines as well as the chance that funding will run out.)
- State rebate: $2,000
While New York has lagged behind other states in electric car initiatives, Empire State residents currently have $2,000 in incentives to put toward an EV. The best part is, New York’s incentive is a rebate, so you can subtract it from the price of the car at the dealership.