EV Tax Credits and Other Incentives
In addition to Efficiency Maine instant rebates, you may be eligible for other financial incentives that could offset the purchase price of an electric vehicle and charging equipment. Click here to see which electric vehicles are eligible for an Efficiency Maine instant rebate.
Federal Tax Credits
Electric Vehicles
Some battery electric and plug-in hybrid electric vehicles are eligible for federal tax credits of up to $7,500. However, these tax credits have phased out for certain manufacturers that have sold 200,000 qualifying cars, a quota imposed by the federal government that will remain in effect through 2022. For more information, please visit the Internal Revenue Service’s (IRS’s) electric vehicle credit page.
The Inflation Reduction Act of 2022 set new requirements for the vehicles eligible for the federal tax credit. New domestic manufacturing requirements took effect upon the law’s enactment on August 16, 2022. Other updates to tax credit eligibility take effect beginning in 2023.
For more information and to see if an EV qualifies for a tax credit, click here. Federal tax credits are not administered by Efficiency Maine and customers should contact a tax professional for guidance.
Federal tax credits are claimed on the individual’s federal income tax return.
For personal vehicles, use Form 8936, “Qualified Plug-in Electric Drive Motor Vehicle Credit.” Report the tax credit from Form 8936 on the appropriate line of your Form 1040, U.S. Individual Income Tax Return. For vehicles purchased in 2010 or later, this credit can be used toward the alternative minimum tax (AMT).
If the qualifying vehicle is purchased for business use, the tax credit for the business use of an electric vehicle is reported on Form 3800, General Business Credit.
Scroll to the bottom of this page to find the forms you will need to claim your federal tax credit.
Electric Vehicles (EV) Charging Equipment
There are federal tax credits available for electric vehicle charging equipment for both residential and commercial use. For residential use, this tax credit covers 30% (up to $1,000 per unit) of the cost of charging equipment and installation. For commercial use, this tax credit covers 30% (up to $30,000 per unit) of the cost. New requirements will take effect for equipment installed in 2023. This tax credit is available until December 31, 2032.
For more information and to access the form to claim your tax credit, click here.
Car Manufacturer Instant Rebates
Car manufacturers often provide their own instant rebates in addition to state rebates and federal tax credits. These offers can change from month to month, so ask a Maine Participating Dealer for the most current deals.
In addition, some car manufacturers fold the federal tax credits into the cost of a monthly lease of an EV. Ask a participating dealership for more information about this option.