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Now is the perfect time to make the leap If you’ve been looking to get an electric vehicle (EV). Here’s a comprehensive guide to all the incentives you can use when purchasing an EV or EV-related equipment. Federal and state programs offer incentives that could help you save thousands of dollars while enjoying the benefits of cutting-edge, quiet, and clean transportation. 

Until 2032, federal tax credits are available to consumers, fleets, businesses, and tax-exempt entities investing in new, used, and commercial clean vehicles—including EVs, plug-in hybrid EVs, fuel cell EVs—and EV charging infrastructure through the Inflation Reduction Act of 2022 and implemented by the IRS. 

 

$7,500 

Federal Incentives for New Electric Vehicles 

The Clean Vehicle Credit, introduced under the Inflation Reduction Act (IRA), offers up to $7,500 in federal tax credits for purchasing a new electric vehicle. To qualify: 

  • The EV must meet certain assembly and battery material sourcing requirements. 
  • Your modified adjusted gross income (AGI) cannot exceed $150,000 for single filers, $225,000 for heads of household, or $300,000 for joint filers. 

This credit applies directly to your federal tax liability, making new EVs significantly more affordable.  

Starting in 2024, this credit can be applied as a point-of-sale discount at dealerships, so you won’t have to wait until tax season to benefit. 

 

$4,000 

Federal Incentives for Used Electric Vehicles 

The Used Clean Vehicle Credit offers up to $4,000 or 30% of the vehicle’s sale price, whichever is lower. To qualify: 

  • The vehicle must be at least two years old. 
  • The sale price must not exceed $25,000. 
  • Income thresholds are lower than those for new vehicles: $75,000 for single filers, $112,500 for heads of household, and $150,000 for joint filers. 

If you are buying in 2024 the used vehicle needs to have been manufactured in 2022. Some dealerships provide the discount at the point-of-sale but are not required to do so for their used vehicles.  

Make sure to check if your vehicle would be eligible for the discount or tax credit before purchasing. Follow the next steps: 

  1. Ask your dealership for the VIN (Vehicle Identification Number) number. 
  1. Go to Recurrent and input the VIN number. 
  1. Look at the results to discuss with your dealership. 

Note: Triangle Clean Cities does not endorse tools or results provided by private entities. These tools are for educational and informational purposes only. 

 

$40,000 

Federal Incentives for Commercial Vehicles 

Businesses looking to electrify their fleets can take advantage of the Commercial Clean Vehicle Credit, which offers up to $40,000 per qualifying vehicle. For smaller vehicles, the credit is capped at 30% of the vehicle's price or $7,500—whichever is less. 

To qualify: 

  • The vehicle must be used for business purposes. 
  • The credit applies to both fully electric and plug-in hybrid vehicles, as well as hydrogen fuel cell vehicles. 

This substantial credit can significantly offset the costs of converting your fleet to cleaner energy, making it an attractive option for businesses. 

 

$1,000 for home charging  

Federal Incentives for Home Charging Equipment 

Installing EV charging stations also comes with financial benefits. The Alternative Fuel Vehicle Refueling Property Credit covers 30% of the cost of EV charging equipment, up to: 

  • $1,000 for individuals installing a home charging station. 
  • $100,000 for commercial charging installations. 

When combined with the Direct Pay Option, tax-exempt organizations can also benefit from this program to reduce upfront costs for charging infrastructure. 

 

$1,133 for home charging 

Local Incentives: Duke Energy's for EV Owners in North Carolina 

Duke Energy is offering a unique incentive to help homeowners in North Carolina prepare their properties for electric vehicle (EV) charging. This program can provide a credit of up to $1,133 to cover the cost of installing wiring for a home EV charger. 

Eligibility Requirements: 

  • You must own your home to qualify. 
  • The EV must be registered at the same address as the home where the installation is taking place. 

What the Credit Covers: 

  • The credit does not cover the cost of the charger itself—you’ll need to purchase that separately.
  • It covers the cost of installing the necessary wiring to connect the charger to your home’s electrical system. 

No Upfront Costs: 

  • Duke Energy can pair you with an approved electrician to perform the work, and no out-of-pocket costs will be required. 

Application Requirements: 

  • To complete the application, you’ll need to provide the contractor’s identification number (ID) for the electrician performing the installation. 

Switching to an EV not only benefits the environment but also offers significant financial rewards. Whether you’re purchasing a new or used EV, or upgrading your home with charging equipment, the combination of federal and state incentives makes now the perfect time to make the switch to an electric vehicle!