Electric Vehicle Incentives 2024 - The Ultimate Checklist
8 Ways To Save Money On EVs
Are you looking for ways you can save money on an electric vehicle? Look no further! Our nonprofit's free checklist for finding electric car incentives can help you make the switch from a gas car to an EV.
EVs are affordable – especially for the people who are driving the most and using the most gasoline. The cost of electric vehicles continues to drop as the cost of the main component, their battery, continues to plummet with advances in technology.
Use this checklist to help look into the many ways - including EV incentives - driving an EV instead of a gasoline vehicle can save you money.
You can also check out the least expensive electric cars.
- 1. Save Money on Fueling Your EV
- 2. Electric Vehicle Maintenance Cost
- 3. Federal Tax Deduction for Electric Vehicles
- 4. Lower the Cost of Your EV with State and Local EV Incentives
- 5. Lowering The Cost of EVs for Lower-Income Households
- 6. Searching For The Most Affordable EVs
- 7. Lease Deals For Electric Vehicles
- 8. Buying A Used EV Can Lower The Price
Haven’t Yet Made The Switch to An EV?
In addition to the checklist below, our nonprofit's free EV Cost-Savings Calculator can help you learn how much you can save by switching from a gas car to an electric car.
1. Save Money on Fueling Your EV
For most Americans, electricity is significantly cheaper than gasoline – across the country, on average less than half the price.
It’s only going to get cheaper as prices for renewable electricity sources like solar and wind continue to drop.
The fuel cost savings can depend on the size of your vehicle, the length of ownership and where you live. According to this study, Washington state is at the high end of the savings spectrum - up to $14,480 could be saved in fueling costs over the anticipated 15-year lifespan of a vehicle.
Fueling Electric Cars - Cost Per Mile
In many states EV drivers spend 3 to 6 cents per mile on fuel, compared to 10 to 30 cents per mile in a gas car.
This can add up to savings of up to $800 to $1,000 a year or $6,000 - $10,000 over your car’s lifetime!
Check out Coltura's EV cost savings calculator to find out how much you could save by going electric.
Fuel on your own time: at home, at work, or while you sleep and enjoy never having to fill up at a gas station again.
For most Americans, electricity is significantly cheaper than gasoline – across the country, on average less than half the price.
How To Save On The Cost of Charging your EV
Unlike gasoline cars, which can only be fueled at gas stations, EVs can be fueled wherever there’s electricity.
Most people simply plug their vehicle in at night and wake up with a full charge every morning. With today’s typical EV ranges of 200 miles or more, for most people that’s all the charge they need daily.
While EVs can be charged to add 4 to 6 miles of range per hour by plugging in to a regular household wall outlet, many EV drivers opt to install a faster charging station at home. Called a “Level 2” charger, this type uses a 240 volt outlet like the ones that serve most electric clothes dryers. It provides about 25 miles of range per hour of charge – more than enough to completely recharge an EV overnight.
There are many incentives for installing a home EV charger depending on where you live (read more below).
Electricity rates are generally cheaper than using public charging, however you can also find free and inexpensive public charging stations.
Download the Ultimate EV Home Charging Cheat Sheet
We put together this free cheat sheet to help people learn about EV charging and how to purchase the right home charger. Simply enter your email to access the cheat sheet as well as sign up for other EV news and inspiration delivered straight to your inbox.
The EV Home Charging Cheat Sheet is brought to you completely free of charge by Coltura, an award-winning nonprofit.
2. Electric Vehicle Maintenance Cost
How Maintaining An EV versus Gas Car Can Save You Money
EV maintenance costs are roughly half those for gas cars. You can expect to save an average of $4,600 in repair and maintenance costs over their lifetime by purchasing an electric car versus a gasoline car.
EVs only have 20 moving parts vs 2,000 parts to break down in a gas-powered car.
One more benefit driving an EV - you’ll never have to make another oil change.
Cost of Replacing Your EV Battery
According to one study, outside of big recalls only 1.5% of EV batteries have been replaced.
Most replacements also occur under warranty. Automakers warrant the EV’s battery for at least 100,000 miles or 8 years.
EV batteries in newer vehicles will likely last much longer. If your EV battery lasts 400,000 miles, it's like getting 2 cars for the price of one, assuming a gas car would last 200,000 miles.
By driving an EV, you'll never have to make another oil change
3. Federal Tax Deduction for Electric Vehicles
A Significant Way To Save On Your Electric Car’s Cost
To help with the cost of EVs, the US federal government offers a one-time, nonrefundable tax credit of up to $7,500 for purchasing a new EV. Starting 1/1/2024, eligible buyers of eligible electric vehicles or plug-in hybrids will receive the tax credit at the time of purchase as an “on the hood” discount, rather than having to wait to take the credit at the time of tax filing. Even better, taxpayers who don’t owe enough tax to be offset by the credit will still be eligible for the full $7,500 credit.
There’s also a new federal tax credit for USED EVs priced up to $25,000, The discount is up to $4,000 or 30% of vehicle cost, whichever is lower.
Learn more about the Federal Tax Credit for EVs
Alternative Fuel Vehicle Refueling Property Credit
Another U.S. Federal Tax Credit gives individuals 30% off home charging stations plus installation costs up to $1,000.
You must purchase and install the charging station by December 31, 2032, as well as claim the credit on your federal tax return.
Looking to Save Money on Purchasing or Leasing an EV?
We collected some of the best resources on purchasing or leasing an EV and put them into an easy-to-use cheat sheet.
Simply enter your email to access the Purchasing An EV Cheat Sheet as well as sign up for other EV news and inspiration delivered straight to your inbox.
4. Lower the Cost of Your EV with State and Local EV Incentives
How you could multiply your electric car savings
How you could multiply your electric car savingsMany states incentivize driving an EV. You may qualify for state tax rebates, special loans, low-cost electricity rates, charging port rebates, and other benefits.
Your local area/city might offer additional incentives.
The federal EV tax credit often stacks with these state and local EV incentives.
There are many great tools to check the incentives where you live. It’s worth investing a little bit of time as some of these incentives can mean thousands of extra dollars in your pocket.
Local Incentives for EV Home Charging
In addition to the federal incentive for purchasing a home EV charger, there are local incentives as well. For example, the Chugach Electric Association in Alaska offers a discount of $200 off your electric bill if you install a Level 2 charger at home.
Local EV Incentives in California
On top of state incentives, there are also local incentives. For example, San Mateo county offers up to a $2,000 rebate for purchasing a used EV.
With the Pre-Owned Vehicle Rebate Program, customers of Southern California Edison (SCE) could qualify for up to a $4,000 rebate on used EVs.
Pacific Gas and Electric (PG&E) could provide up to $2,500 in financial incentives for income-eligible PG&E customers.
Discounts on tolls, special loans, low-cost home charging rates, electric utilities incentives and more could also be available depending on where you live in California.
Learn more about electric vehicle incentives in California.
“Time is Money”
“Time is Money”Some areas allow EV drivers to use the HOV lane, saving you time.
Check Your State and Local EV Incentives
You can plug in your zip code and the EV to see incentives on electricforall.org
You can also see a comprehensive list of the state and local incentives you could qualify for by entering your location on Plugstar.
5. Lowering The Cost of EVs for Lower-Income Households
Depending on your household income, you might be eligible for even more incentives.
Use the tools in the section above to check out incentives in your location.
Help In California For Making Electric Vehicles More Affordable
California’s Clean Cars for All program provides up to $9,500 in discounts off a new or used EV for income qualified drivers.
California offers income-qualified drivers loans and grants from the Clean Vehicle Assistance Program, including up to $2,000 for installing a home EV charger.
6. Searching for the Most Affordable EVs
EV prices are falling. Many electric vehicles cost less than the average new vehicle price of $47,244.
There are many EV makes and models.
7. Lease Deals For Electric Vehicles
EV leases can be found for as little as $11 per day.
While leases are not eligible for some EV incentives such as the federal tax credit, dealerships can pass on those savings. Ensure your dealership is passing these savings on to you by asking for an itemized price.
8. Buying A Used EV Can Lower The Price
As more new EVs enter the pipeline, the used EV market is growing.
Especially if you don’t need a newer model EV with a longer range, you can find rock-bottom deals.
In many areas of the US, used electric vehicles are available for $10,000 or less. As noted above, depending on where you live, state and local incentives could also be available for helping lower the cost of a used electric car as well.
For example, for as long as the funds last each year, low-income Californians can take $5,000 off the cost of a used electric vehicle plus get free charging installed at home. Bay Area residents who qualify for the Clean Cars for All program also get $5,500 to $9,500 off a used EV plus free home charger installation.
Here are some considerations to help decide if buying a used EV is right for you
Conclusion
Thank you for considering an EV!
You now have plenty of great resources on how you can save money on making the switch to an EV from a gas vehicle.
In addition to being affordable, driving an EV is also better for our health and climate. This is why many of the EV incentives exist. It’s also why we, as a nonprofit, care so much about making sure consumers like you are well informed about the many benefits of EVs - including their lifetime cost.
Please share this checklist with family and friends thinking about a vehicle change. You could be doing their wallet, health, and our climate a favor.
We hope the EV Cost-savings Checklist has been helpful for you
If you have benefited from it, we invite you to consider supporting our efforts to move the country beyond gasoline, by donating to Coltura.