Federal and state tax Incentives can lower the upfront cost for new vehicles.
Federal $7,500 tax credit
The federal incentive for four-wheeled, highway-capable vehicles is typically referred to as a flat $7,500 tax credit. To be precise, however, the credit is $2,500 plus $417 for each kilowatt-hour of battery capacity in excess of 5-kilowatt hours.
While some plug-in hybrids are only able to qualify for a portion of the credit, the battery size for plug-in electric vehicles, and extended range electric vehicles typically ensures that they qualify to receive the full credit amount. The total amount of credit available for a plug-in electric or hybrid electric is $7,500.
Check with your tax advisor for information on vehicle federal income tax credits.
IRS.gov also has further details: Plug-In Electric Drive Vehicle Credit (IRC 30D).
Two Wheel Vehicle Credits
A Federal Tax Credit providing a credit for 10% of the cost up to a maximum of $2,500 for two-wheeled electric vehicles is available for vehicles purchased between January 1, 2015 and December 31, 2016. This credit had expired in 2013, but was retroactively extended in December 2015.
Oregon Fleet Tax Credit
Oregon’s Energy Incentives Program (EIP) currently provides tax credits for charging equipment and has been expanded by the Oregon Department of Energy to provide a tax credit for the purchase of alternative fuel vehicle fleets as well. This tax credit will be available starting January 5, 2015 and will provide a credit for 35% of the certified incremental cost of the project for alternatively fueled vehicles, if at least two vehicles are purchased. For more information and details about the program visit the Oregon Department of Energy’s Alternative Fuel Vehicle Fleet Projects page or contact Rick Wallace.
Charging Station Incentives
Oregon: Residential Credit up to $750
Through the Residential Energy Tax Credits program, qualified Oregon residents may receive a tax credit for 50 percent of the cost of a charging station or other alternative fuel infrastructure project, up to $750. More details and an Application Form can be found at the ODOE’s Transportation Services page. For those who do not have the tax liability to claim the tax credit on their state income tax form, a pass-through option is available.
Oregon Business Credit up to 35%
Through the Energy Incentives Program (EIP), Businesses may receive a tax credit for up to 35 percent of the qualified cost of charging stations or other alternative fuel infrastructure projects. Applicants need to submit an application for a project to be preliminarily certified and must undergo a final certification upon the project completion. Pass through options are also available for organizations without sufficient tax liability. Application and certification fees are necessary for the application process, so these tax credits are best utilized on high cost projects. More information can be found at the ODOE’s Transportation Incentives page.
Federal: Consumer & Business Credit up to 30%
A Federal Tax Credit providing a 30% credit for the installation of a charging station (up to $1,000 for consumers and up to $30,000 for businesses) is available for stations installed between January 1, 2015 and December 31, 2016. This credit had expired in 2014, but was retroactively extended in December 2015.