Both state and federal governments provide incentives to encourage
consumers to purchase or lease electric vehicles and reduce emissions.
Battery electric and plug-in hybrid vehicles may be eligible for a federal income tax credit of up to $7,500. Learn how much you can save depending on the make and model of your vehicle.
Individual states are also working to reduce emissions and rewarding consumers for purchasing electric vehicles. See what incentives and rebates are being offered in your state:
Will an electric vehicle save me money?
Another incentive to drive an electric vehicle is the one you get every day by saving money at the gas pump—or avoiding it altogether. Drivers of plug-in hybrid EVs (PHEVs) typically drive 80% or more of their annual miles on electricity, shrinking their gas consumption dramatically by shifting to electric power. All-electric battery EV drivers never need gas at all!
All-electric battery EV (BEV) drivers may also save money on other maintenance costs. BEVs have fewer moving parts, and engine components may last longer because they don’t operate at the high temperatures of an internal combustion engine.
Check out the Department of Energy’s Vehicle Cost Calculator to compare the costs of an electric vehicle with those of a gasoline-powered vehicle. You can also find out how much you could save in gas if you switched to electric power, using the DOE’s eGallon tool.