Federal and State Incentives for Plug-Ins, EV's

As requested by several users, here is the start of a "STICKY" thread on Tax/other incentives for the Plug-In Prius (PiP) and related cars.

The US Federal Tax credit for PiP is $2500 (see more details below). After that, there may be additional incentives from your State, Local Government (eg; County), and your electric Utility. The situation is so complex that each PiP owner will have to carefully study his or her specific local situation. Upon purchase, your PiP Toyota dealer should be able to give you all the details for your region. As a PiP buyer, you should be sure to ask about this.

The usual provisos apply - these incentives are subject to frequent changes, and generally apply to the original title owner of the vehicle. However, some of the state tax/utility incentives apply whether or not you purchase or lease. Some states require that the car be purchased in-state to qualify. Also this write-up is intended as a guide only, and new owners should be sure to verify their specific situation.

FEDERAL AND STATE INCENTIVES "COMPLETE" LISTING
Here is the US DOE comprehensive listing of Federal and State Incentives:
Alternative Fuels Data Center: Federal Incentives and Laws for Tax Incentives
States:
Alternative Fuels Data Center: All Incentives and Laws Sorted by Incentive
Nice state-by-state interactive map here:
State & Federal Incentives | Plug In America

FEDERAL SUMMARY (PiP)
"Qualified Plug-In Electric Drive Motor Vehicle Tax Credit
A tax credit is available for the purchase of a new qualified plug-in electric drive motor vehicle that draws propulsion using a traction (eg; lithium) battery that has at least four(4.0) kilowatt hours of capacity, uses an external source of energy to recharge the battery...The minimum credit amount is $2,500 (PiP@ 4.4 kWhr) and the credit may be up to $7,500, based on each vehicle's traction battery capacity and the gross vehicle weight rating. The credit will begin to be phased out for each manufacturer in the second quarter following the calendar quarter in which a minimum of 200,000 qualified plug-in electric drive vehicles have been sold by that manufacturer for use in the United States. This tax credit applies to vehicles acquired after December 31, 2009. For more information, see the Internal Revenue Service Qualified Vehicles Acquired after 12-31-2009 web site"

In plain English - for PiP you get $2500 off your US taxes. However, if you do not owe any US income tax, then you cannot take the credit. As most PiP owners know, Toyota's approach is a smaller, nominal 4.4-kWhr Lithium battery. This is why PiP only gets the minimum tax credit. For comparison purposes, the GM Volt has a larger Lithium battery (nominal 16-kWhr) and thus qualifies for the maximum $7500 federal tax credit.

Re: PiP Leasing - If you lease a PiP, you do NOT qualify for the Federal tax credit. The tax credit instead goes to the owner (leasing company). Some leasing companies then prorate the tax credit back into the lease price in the form of a "capital cost reduction" or "lease dollars" so that the lessee still receives some of the benefit. In summary, you may get a very good lease deal, but a consumer who leases the PiP does NOT qualify for the IRS tax credit.

(Possibly one Prius Chat member from each state can write a paragraph for that state and we can append below a short discussion for each state. Our priority here is PiP specifics but out of necessity we will probably cover all Plug-Ins).

2012 PiP Roll-Out STATES
For 2012, it is helpful to know the 14 PiP roll-out states.
There are 4 on the west coast: CA, AZ, OR, WA
There are 10 on the east coast: VA, MD, NJ, NY, ME, CT, RI, NH, VT, MA
...some folks say there are 15 PiP states: so let's add HI
If you are getting a PiP in 2012 or later, chances are you will be getting it from these states.​

Hurry!! 2015 LAST CHANCE For PiP Incentives as classic PiP is now Discontinued

CALIFORNIA SUMMARY
Toyota press release info for CA (Feb_2012) :
Toyota | Toyota Confirms Prius Plug-In's Eligibility for an Additional State of California Consumer Incentive and Its EPA Mileage Rating
"Prius Plug-in models are eligible for up to $4,000 worth of government-supported consumer incentives ($2,500 federal tax credit and $1500 worth of the State of California’s Clean Vehicle Rebate Program), in addition to offering eligibility for California’s High Occupancy Vehicle (HOV) lane sticker."
IMPORTANT NOTE: 2015 CVRP Doubled!! for low income cases, but phases out over $250000 income now

DELAWARE SUMMARY
For 2015, DE has a brand new Plug_in incentive about $2000 and seems to apply to PiP. Hurry though, the big question is: will anyone get a new PiP in DE for the incentive before the PiP supply ends.

COLORADO SUMMARY
Colorado has some of the best Plug-In and conversion tax credits. Credits for EVs and PHEVs are equal to the actual cost incurred to purchase or lease the vehicle, multiplied by the battery capacity, and divided by 100. That amount must be multiplied by a factor to determine the credit amount, as follows: 1.0 for 2013-2018, 0.75 for 2019, 0.50 for 2020, and 0.25 for 2021. There is a cap of $6000. For a PiP costing $32000, with a 4.4kWh battery the rebate is about $1400. On conversions credit is 75% of the installed cost (at least through 2018), so at Boulder Hybrid Conversions you can get a 10kWh upgrade to your Prius Gen 3, for $5800 after the rebate, or a 4kWh upgrade for $2600 after rebate. Oddly the rebate for the 4kWh upgrade is better than the rebate on the PiP itself.

NEW JERSEY SUMMARY
New Jersey does not have an incentive for PHEVs like PiP (but BEV's are tax exempt up to $4000). There are some Green EZPass discounts, but see discussions on PriusChat as the rules are complex in the NYC/North Jersey region due to different EZPass jurisdictions.

VIRGINIA SUMMARY
Virginia has no state incentives but "localities" are authorized to give property tax relief to "Clean Special Fuel" vehicles (eg; Arlington Co offers tax relief). Re: HOV- new "clean fuels" plates allow limited free HOV access. Older "clean fuels" plates allow better HOV access, but the only way to get them on a PiP is to transfer plates from a prior hybrid you owned. In 2012, Dominion Power had a pilot program offering a low-cost off-peak electricity for Plug_ins. VA PiP owners may want to check with Dominion to see if this program is still available. The ill-fated VA $64/yr hybrid fee has been cancelled after July 1, 2014.

MARYLAND SUMMARY​

MD has a sales tax reduction based on battery size so PiP only gets $600 off, and that's being reduced to $550 in 2014.

DC (WASHINGTON DC)
DC is a great place to buy any Prius or plug-in as green cars over 40 MPG EPA City are exempt from sales taxes.

PENNSYLVANIA SUMMARY
"PA has a rebate program. It's only $1000 for the PIP, but hey, it's something! Details can be found at Alternative Fuels Incentive Grant. " Since PA is not a PiP roll-out state, for 2012 residents would have to purchase their PiP's out-of-state. IMPORTANT NOTE: PA PiP owners must apply for the $1000 PA plug-in credit within 6-months of the purchase, don't miss this deadline. The PA incentive is considered taxable income so you will pay some tax on it.

TENNESSEE
Home of the Nissan Leaf plant, which understandably gets an EV incentive in TN. No incentive for PiPs.

GEORGIA SUMMARY
In GA: The Plug-in Prius qualifies for the Alternative Fuel TAG (single occupant HOV/ Free HOT lane access) but PiP does NOT qualify for the GA Alternative Fuel TAX credit. However, buy a TN-built Nissan Leaf and you'll get a generous $5000 GA tax credit.

NEW YORK
NY state appears to be in with the crowd (VA, NJ, GA) that does not give state tax PiP incentives. You do have some free HOV access that any hybrid qualifies for (eg; Long Island Expressway). Also there are Green EZPass discounts, but see discussions on PriusChat as the rules are complex in the NYC/North Jersey areas due to different EZPass jurisdictions.

WEST VIRGINIA
Apparently the party is over as of April 15, 2013 reportedly no more Plug-In credits in WV. WV had been among the strongest state supporters of EV's and Plug-Ins with a $7500 state tax credit (even for PiP).

OHIO
No state tax incentives but OH reportedly defrays 80% cost of home charging equipment. OH not a PiP roll-out state so pilgrimage to MD, NY etc needed to buy one in 2012.

OREGON
No monetary incentives but zero sales tax helps a lot.

MASSACHUSETTS
MA is adopting a new $1500 PiP incentive starting June 2014!! Nice.

TEXAS
TX is adopting a new $2500 incentive on PiP!!...but unclear how useful it will be since the PiP must be bought in TX, and PiPs are not widely available in TX. TX is future home of Toyota USA, so stay tuned.

VERMONT
$500 Plug-In credit for the first 75 applicants in June/July 2014

MAINE
Maine has no state spiffs (incentives) at all. But hey, they are thinking about it!

(Please advise any incentives updates for your state)

CARB STATES for 2014
Finally, the other "incentive" that some states enjoy is a longer hybrid battery warranty up to 150K miles and 10-yrs (vs. standard warranty of 100k miles and 8-years). It is beyond the scope of this thread to discuss the complexities of CARB warranty coverage, but suffice it to say, if you need a new hybrid battery and your car is registered in a state with a longer hybrid battery warranty thru CARB, you may be covered depending on where/when you purchased the vehicle and other requirements.

Here is the list:

MY 2004 California, Maine, Massachusetts, New York, Vermont
MY 2005 Connecticut, New Jersey, Rhode Island
MY 2011 Maryland
MY 2008 Oregon, Pennsylvania*
MY 2009 Washington*
MY 2014 Delaware*
(...pls advise any corrections...AZ, NM, NH are ex-CARB)

* For PA, DE, WA warranty does not include the 150,000/10 year duration battery coverage

Read more: http://priuschat.com/threads/the-2014-list-of-carb-states-in-the-us.136661/#ixzz32V0gPq2M
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...what did you mean purchase by January 1, 2012? The federal credits are still in force, right.

 

...well not quite nothing from NJ, right? As an NJ EasyPass holder I believe there may be a toll reduction for hybrids, and some HOV access, and according to the DOE website in the OP, qualified owners in Philly region may have an available EVSE utility plan (South Jersey)?

 

...hmm, either IRS have updated that bulletin, or we are going to have a lot of unhappy plug-in onwers at tax time.
There were some laws that expired end-of-2010/2011 for non-plug hybrids etc. But I am quite sure the Plug_In federal credits extend to 200,000 vehicles sold per manufacturer, which, at current sales rates, means a long, long time.

 

OK thanks El D that about covers NJ. Easy one.
My spouse started her career at Cooper Hosptial in Camden.

 

It figures. Do you think we should de-activate the IRS LINK?
I guess you are saying the DOE site is OK.

 

California info courtesy Paradox (Mark)

 

Really good question...not sure how it works. Can someone tell us?
OK I see we have a good response from JH, thank you.