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Cutting Vehicle Emissions Gasoline Superusers 3.0 Webinar Main Image
Cutting Vehicle Emissions Faster and More Equitably
March 15, 2024
The Federal EV Tax Credit Main Image
The Federal EV Tax Credit In 2024 and Other EV Incentives
April 7, 2024
 

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


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.

 
 
 
 

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.

 

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.

Learn more about EV battery life.

 
 

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

See if your vehicle qualifies

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.

Read more

 

4. Lower the Cost of Your EV with State and Local EV Incentives


How you could multiply your electric car savings

Many 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”

Some areas allow EV drivers to use the HOV lane, saving you time.

Check to see if your state is listed here

 
 

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.

Click here for the best EV prices (updated often).

 
 

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.

Read more on why leasing an EV might be right for you

Check EV Lease Deals

 

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

Check out this used EV deal search

Or check out deals on myev.com

 
 
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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.

 
Electric Vehicle Incentives 2024 – The Ultimate Checklist
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