BEV - battery electric vehicle
PHEV - plug in electric vehicle
EVMC - electric motorcycle
NEV - neighborhood electric vehicle
ALT Fuel - alternative fuel vehicle
EV Conversion - gas burner converted to electric
Abbreviation Descriptions
BEV - battery electric vehicle
PHEV - plug in electric vehicle
LEV - low emission vehicle
FCV - fuel cell vehicle
World Tax Credits for Electric Vehicles
The electric car tax credit makes new electric cars and charging gear affordable. This page describes the term tax incentive, lists tax credit amounts in various countries and states, and gives some examples.
Tax credits are one form of EV incentive provided by State and Federal governments. Tax credits are applied at the time you file your income tax return, and are not direct cash rebates.
The tax credit is a dollar for dollar reduction in your income tax. A $1000 tax credit means
you will pay $1000 less tax that year, no matter your tax bracket. It also means that to
get a $7,500 tax credit, you must owe at least that much in taxes.
For consistency, the incentive amounts listed are the maximum amounts in US dollars.
The amount of incentives may vary, and may be less than the maximum listed.
Cash rebates are included for comparison.
US Government and State Tax Credit Programs
The US Government offers up to a $7,500 tax credit on the purchase of a new electric vehicle. That might be changing in 2012, as the Federal Government considers a purchase rebate of $7,500 instead of the current tax break.
Individual states provide up to an additional $6,000 incentive for a total of $13,500 in possible incentives.
State programs are not fixed in time. Programs may be for a specified number of cars only. For instance, Tennessee offers $2,500 for the first 1,000 EVs sold in that state. After that, the incentive drops. The California rebate program has reportedly run out of cash. So, it is best to check locally before visiting the showroom.
World Government Tax Credit Programs
Governments provide direct subsidies and tax relief to consumers as incentives to promote the use electric vehicles in their countries. The tax credit is one form of subsidy. The credits vary considerably from country to country.
The credits are applied to the BEV, PHEV, converted vehicles, and in some cases alternative fuels vehicles. The PHEV generally requires a 4kWh or so battery pack.
Countries of the European Union all offer some kind of EV incentive. The amount and type varies widely from cash rebates to free parking.
Denmark appears to offer no substantial credit. However, the country offsets its own huge vehicle import tax for EV buyers. This adds up to many thousands.
Germany backs the EV industry heavily (2.8 billion Euros), but provides no direct rebate or tax credit to the consumer.
Portugal offers a cash incentive for EV purchase, and an additional incentive if trading in a gas burner as part of the deal.
Ontario and Quebec provinces in Canada offer large rebates of around $10,000 USD for the purchase of a new PEV. Not all Canadian provinces offer this level of incentive however.
China provides nearly $9,000 per EV to manufacturers and $500 to the consumer. The goal is to stimulate production and sales of the China EV.
Taiwan is scooter driven. The island Executive Cabinet recently announced a goal to get 100,000 electric scooters on its roads in four years.
