Tax Credit

• The federal government currently rewards a tax credit to electric car buyers. The amount of this credit varies depending on the battery capacity of the electric car that you purchase. Currently, the maximum federal tax credit is $7,500. There are also an increasing number of states that offer additional tax credits for buyers. State tax credits can be combined with the federal credit, giving buyers a substantial monetary incentive. Furthermore, an increasing number of states offer additional tax credits toward the purchase of home charging equipment for electric cars.
  
  

Waived Sales Tax

• In addition to tax credits, an increasing number of states offer programs that waive the sales tax of electric vehicles. This saves consumers a substantial amount of money compared to the purchase of a gasoline vehicle. Since electric cars are an emerging technology, the base price of the vehicle is generally higher than that of a comparably-equipped gasoline car. Being exempt from sales tax helps offset the higher price of electric cars. This makes them more attractive to budget shoppers who may otherwise choose a gasoline vehicle due to the lower base price.
  
  

Carpool Lanes

• Some highways have a carpool lane, limited to drivers riding with one or more passengers. When hybrid vehicles first grew in popularity, many states enacted programs to give special driving privileges to hybrid owners, such as the option to drive in the less congested carpool lane when not carrying any passengers. Many states are now revoking this privilege due to the large number of hybrid vehicles on the road. However, an increasing number of states that have carpool lanes are beginning to offer these same privileges to drivers who commute in electric vehicles. This gives potential buyers the incentive of a quicker, easier commute.
  
  

EV Conversions

• In addition to the incentives for purchasing new electric vehicles, there also are various state and federal incentives for the costs to convert a gasoline or hybrid car into a plugin electric vehicle. The current federal credit offers a 10 percent refund on the total cost of conversion, with a maximum credit of $4,000. This credit can be combined with applicable state incentives, making electric conversion projects an attractive option for do it yourself enthusiasts.