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
Federal tax credits are not administered by Efficiency Maine and customers should contact a tax professional for guidance.
New Electric Vehicles
Some new battery electric and plug-in hybrid electric vehicles are eligible for federal tax credits of up to $7,500. Eligibility requirements and income caps apply. For more information, visit the Internal Revenue Service’s (IRS’s) New Clean Vehicle Credit webpage. For a list of manufacturers and models eligible for the federal tax credit, click here. This list will change as new requirements come into effect in the early part of 2023, so please check back frequently to determine if a vehicle is eligible.
The Inflation Reduction Act of 2022 set new requirements for the vehicles and purchasers eligible for the federal tax credit. If you purchased a vehicle before January 1, 2023, click here to see if you qualify under the previous tax credit rules.
For information about federal tax credits for commercial vehicles, click here.
Used Electric Vehicles
Some used BEVs and PHEVs are eligible for federal tax credits of up to $4,000. Eligibility requirements and income caps apply. For more information, visit the IRS’s Used Clean Vehicle Credit webpage.
Claiming Federal Electric Vehicle Tax Credits
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. You will need to include the vehicle identification number (VIN) on the form. 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.
Electric Vehicle (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 $100,000 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.