Yes, several states offer both EV tax credits/rebates and sales tax exemptions for electric vehicles, though availability and specifics vary by state. Below are confirmed examples as of the latest data:
New Jersey
- Sales tax exemption: Full exemption on new EV purchases (phasing out to 3.3125% by late 2024 and ending July 2025).
- Rebates: Up to $4,000 for new EV purchases/leases and $250 for home charger installations.
Washington
- Sales tax exemption: First $15,000 exempt for new EVs (priced ≤$45,000) and $16,000 for used EVs (priced ≤$30,000), expiring July 2025.
- Charging incentives: Sales tax exemption on EV charger installations until July 2025.
- Note: Washington does not offer direct EV purchase credits but provides charging infrastructure incentives alongside the sales tax break.
Rhode Island
- Rebates: Up to $1,500 for new EVs and $1,000 for PHEVs.
- Sales tax: While not explicitly exempt, the state avoids additional EV registration fees, and rebates effectively offset costs.
- Clarification: Rhode Island’s program focuses on rebates rather than sales tax exemptions.
Key Observations:
- Sales tax breaks (e.g., New Jersey, Washington) and rebates often coexist, but full tax credits + exemptions are less common.
- Federal tax credits ($7,500 for new EVs) remain available nationwide through 2032, complementing state-level incentives.
For precise eligibility, check state-specific guidelines, as income limits, vehicle price caps, and expiration dates frequently apply.
Original article by NenPower, If reposted, please credit the source: https://nenpower.com/blog/are-there-any-states-that-offer-both-ev-tax-credits-and-exemptions-from-sales-tax/
