Buying an electric vehicle
Slash the sticker price with a federal income tax credit of up to $7,500. It’s available for new all-electric and plug-in hybrid cars.
The federal government is offering a $7,500 tax credit for qualifying electric cars. The credit is $2,500 plus $417 for each kilowatt-hour of battery capacity in excess of 5-kilowatt hours. Your eligibility for income tax credits depends on your personal tax situation. We recommend speaking with a tax professional for guidance.
$28,000 Estimated MSRP*
-$7,500 Federal Tax Credit**
$20,500 = Your cost.****
*MSRP provided by area dealers. Subject to change without notice. Actual prices may vary based on model type and trim packages. Consult local dealers for actual pricing.
**Federal Tax Credit is only available to those who qualify and may have additional requirements. Consult a tax professional to determine if you qualify.
****This is only an estimate. Utility does not make any guarantees that customers will qualify for any of the above tax credits or rebates. Consult a tax professional to determine if you qualify.
See your savings
Thanks to years of hard work by Forth and our partners, Oregon now has a purchase rebate of up to $2,500 for new all-electric and plug-in hybrid vehicles and an additional $2,500 for lower-income drivers to buy new or used electric cars. On August 2, 2018 the Oregon Supreme Court unanimously ruled against a lawsuit challenging how the program is funded, which will allow the Clean Vehicle Rebate Program to move forward. The Department of Environmental Quality will be working quickly to streamline the rebate system.
The standard rebate of up to $2,500 applies to the purchase or lease of any new electric or plug-in hybrid car with a base MSRP of $50,000 or less. The additional Charge Ahead rebate of up to $2,500 can be combined to provide $5,000 towards the purchase or lease of a new vehicle, or applied to a used electric car. Purchases made on or after January 1, 2018 are eligible for the rebate and buyers must fill out a Phase I application within six months of purchase (fill it out here). Buyers will be required to complete a Phase II application at a later date.
For more information and to stay up to date on the rebate application process, sign up for our newsletter below and subscribe to updates directly from DEQ’s website.
Forth helped shape legislation in HB 2042, providing incentives for electric vehicles and infrastructure. We advocated for low-income electric car-sharing pilots, low-income electric/hydro vehicle financing study, charging infrastructure, and to re-establish the sales tax exemption. The legislation passed with bi-partisan support and was signed by Gov. Jay Inslee on May 7, 2019.
- Tax incentive programs for electric and other alternative fuel vehicles and charging infrastructure become available August 1, 2019, for new or leased vehicles with a sales price of $45,000 or less, or a used vehicle with a sales price of $30,000 or less.
Clean alternative fuel and plug-in hybrid vehicles - sales/use tax exemptions
Beginning Aug. 1, 2019 a sales and use tax exemption for new or used clean alternative fuel and certain plug-in hybrid vehicles is available in Washingon. The Department of Licensing maintains a list of qualifying vehicles.
The exemption applies to a portion of the new or used vehicle sales price.
For qualified new vehicles, the exempted amount is determined as follows:
|Sales or use tax exemption available
|Aug. 1, 2019 - Jul. 31, 2021
|up to $25,000 of the sales or lease price
|Aug. 1, 2021 - Jul. 31, 2023
|up to $20,000 of the sales or lease price
|Aug. 1, 2023 - Jul. 31, 2025
|up to $15,000 of the sales or lease price
The exemption will be applied to the sales price or fair market value when you purchase or lease a new passenger car, light-duty truck or medium-duty passenger vehicle that meets one of the following requirements:
Installing a charging station
Oregon: Many utilities offer incentives if you install residential charging stations. Contact yours to learn more.
Washington: Pay no sales tax when purchasing and installing an electric vehicle charger.