We all know that electric motorcycles cost much more than their traditional gas-powered counterparts. But there are various federal and state tax credit on electric motorcycle and incentives that can reduce those high upfront costs.
Many states have introduced these Federal incentives, and they have their state-level incentives too. While others are still developing these incentives for electric riders, the remaining states don’t have any tax rules for such incentives.
Here, we will list all these states and briefly discuss them to highlight how they incentivize electric vehicle owners.
| State name | Tax Incentive Value | Incentive on Hybrid Vehicle | Incentive on All-Electric Vehicle |
| Alabama | Charging at a discounted rate during off-peak hours | – | – |
| Alaska | $1000 rebate (min 16kW battery bike) and $200 bill credit on residential charging and a reduced TOU rate | – | – |
| Arizona | 75% cost of installing Electric Vehicle Charging Systems (EVSEs) with a $500 rebate for the 2-way charger and $250 for the one-way charger. Plus, 5% decrease in charges for charging during off-peak hours along with reduces AFV license tax | – | – |
| Arkansas | $250 incentive on installing a 2-way EVSE charger and $150 on installing a golf cart | – | – |
| California | $1000 rebate along with additional incentives. Plus, Discounted rates for charging during off-peak hours, MCE rebate, $150 EVSE rebate, $1500 rebate on buying used EV, and reduced TOU (time of use) rates | – | – |
| Colorado | EVSE grants and rebates covering 70% of costs and Free level 2 charger installation | – | – |
| Connecticut | $2000 rebate on purchasing a new bike and $1000 rebate on the lease of a new bike. Plus, Reduced bike registration fee with discounts on EVSE installation | – | – |
| Delaware | $1000 rebate on purchasing a new plug-in hybrid electric bike and $2000 on battery electric bike. But the price shouldn’t go over $60,000. Plus, a rebate of $3500 on a single port and $7000 on dual port EVSE installation along with 1 time $200 billing credit along with a $5 credit when the costs are high | – | – |
| Florida | $200 rebate on purchasing or leasing an electric bike and $100 rebate on installing EVSE based on battery size | – | – |
| Georgia | $250 rebate on level 2 EVSE charger along with EVSE installation rebate with TOU-based rate incentive | – | – |
| Hawaii | $4500 and $3000 EVSE rebate for installation and upgrade. DC fast chargers are eligible for $35000 and $28000 for installation or upgrade. ($500,000 capped in a fiscal year). Plus, incentives on TOU-based rates | – | – |
| Idaho | None | Exempt from state’s motor vehicle maintenance and inspection programs | Exempt from state’s motor vehicle maintenance and inspection programs |
| Illinois | None | Exempt from state’s motor vehicle emissions inspections | Exempt from state’s motor vehicle emissions inspections |
| Indiana | None | Rebates in TOU rates | Rebates in TOU rates |
| Iowa | $500 rebate on EVSE installation and $500 rebate on the purchase of a new electric bike | – | – |
| Kansas | None | – | – |
| Kentucky | None | – | – |
| Louisiana | EVSE Installation rebate of $250 and 10% tax credit on electric motorcycle. Plus, TOU-based charging incentive | – | – |
| Maine | $3000 and $1500 tax rebate on purchase or lease of an electric bike. Furthermore, Tax rebates and EVSE exemptions are available | – | – |
| Maryland | EVSE rebates up to $7500 along with charging rate incentives where you can earn up to 2 cents per kWh. Furthermore, Exemption from vehicle emissions inspections, reduced TOU rates, EVSE rebates are available | – | |
| Massachusetts | $2500 and $1500 rebate on purchase or lease of an ebike and an $8 monthly bill credit for charging during off-peak hours | $1500 rebate for purchase or lease of an ebike with TOU-based reduced rates | $2500 rebate for purchase or lease of an ebike with TOU-based reduced rates |
| Michigan | $500 EVSE rebate with TOU-based decreased rates | – | – |
| Minnesota | Purchase or lease rebate of $250 for battery and $150 for a hybrid vehicle. $500 rebate on EVSE installation. | $150 rebate on purchase or lease of ebike with EVSE rebates | $250 rebate on purchase or lease of ebike with EVSE rebates |
| Mississippi | $250 incentive for buying EVSE level 2 charger | – | – |
| Missouri | None | Exemption from emissions inspection requirements | Exemption from emissions inspection requirements |
| Montana | None | – | – |
| Nebraska | $4000 rebate on the purchase of a new ebike and $500 rebate on EVSE installation | – | – |
| Nevada | Exemptions from emissions inspections and reduction in TOUR-based rates with EVSE insulation incentives | – | – |
| New Hampshire | EVSE installation cost coverage up to 50% and TOU-based rate reduction. | $600 rebate on purchase or lease | $1000 rebate on purchase or lease |
| New Jersey | Rebate on purchase or lease of electric bikes up to $5000 and exemptions from sales and use tax on these bikes align with a 10% Toll discount | – | – |
| New Mexico | None | – | – |
| New York | Rebates of up to $2000 for purchasing or leasing a new bike plus rebates on ESE installation cover up to $4000 per port. Exemptions from emissions inspections and TOU-based incentives | – | – |
| North Carolina | Emissions inspection exemptions, $100 rebate on EVSE level 2 charger installation, and TOU-based rate reduction. | – | – |
| North Dakota | None | – | – |
| Ohio | Exemptions from emissions inspections and EVSE installation incentives | – | – |
| Oklahoma | EVSE Installation rebate of up to $250 | – | – |
| Oregon | Rebates of up to $2500 on purchase or lease on new bikes based on the battery capacity. EVSE Installation rebate of up to $500 along with TOU-based rate reduction and e-bike registration discount of $100 | – | – |
| Pennsylvania | Rebates of over $1000 on purchase or lease of electric bikes along with EVSE rebates and $60 bill credit (one-time) on purchase of an electric bike | – | – |
| Rhode Island | Incentives or EVSE installation and exemption from emissions inspection | – | – |
| South Carolina | None | – | – |
| South Dakota | None | – | – |
| Tennessee | $400 rebate for EVSE installation | – | – |
| Texas | $5000 rebate on purchasing or leasing new e-bike and exemption from emissions inspection. Up to $500 rebate on the purchase of EVSE | – | – |
| Utah | Exemptions from emissions inspection and $200 rebate on EVSE installation with TOU-based rate reduction | – | – |
| Vermont | 25% rebate on buying or leasing electric vehicles up to $5000 with EV financing and EVSE rebates and bill credit on buying their EVSE charger | $1000 rebate on purchasing or leasing e-bike and $750 on buying used ones along with $250 bill credit on buying | $1500 on purchasing or leasing e-bike and $750 on buying used ones. |
| Virginia | Exemption from emissions inspection, reduction in TOU-based rates along with EVSE incentive | – | – |
| Washington | Exemption in EVSE and electric bike sale and use tax and EVSE installation cost | – | – |
| West Virginia | None | – | – |
| Wisconsin | EVSE rebate of up to $800 and TOU-based rate reduction of up to $1000 | – | – |
| Wyoming | None | – | – |
| District of Columbia | Excise tax exemptions and a $36 reduction in the e-bike registration fee | – | – |
States with Tax Incentives on Electric Vehicle
Different states have some tax incentives in place for the consumers. These incentives are transferred to the customers via reduction of fees or rebates. Here are the conditions that have some tax incentives and rebates for their electric motorcycle riders.
Alaska
The State of Alaska incentivizes you with a $200 bill credit per residential charger. Furthermore, you will also get an electrical vehicle rebate of $1000 for anyone who owns an electric vehicle, including an electric bike.
But the minimum battery size needs to be at least 16 kW. A reduced TOU-based rate will be charged under the Alaska Electric Light and Power Program.
Arizona
In the State of Arizona, you will get a reduction in your tax against the license for AFV. This will be $400 for every $100 that goes in the assessment value.
This is applicable for all vehicles that run on alternative fuel that includes electricity too. Under the program directed by Tucson Electric Power, residential consumers are eligible for up to 75 percent rebate on their cost of installation of EVSE.
The maximum capped amount here is $500 for a 2-way charger and $250 for a one-way charger. Moreover, there is a 5% decrease in application charges if you use your EV during those off-peak hours.
Arkansas
The consumers in Arkansas are eligible for cash incentives that alter based on the type of technology in use. There is a rebate of $250 for a 2-way charger and $150 for a golf cart.
You might not get any other incentive or reduction in fees of any kind. But at least there is some kind of incentive you can benefit from when using your eclectic motorcycle.
California
The State of California has alternative fuel vehicle incentives programs to make sure that they devise various policies to govern the entire process of incentivizing consumers for their EV usage.
Under the California Health and Safety Code and the Clean Vehicle Rebate Project, the state government offers rebates of up to $4500 on electric vehicles. When it comes to electric bikes, the state has a rebate of $750 on offer.
These rebates are offered on a first-come and first-serve basis on all purchases or leases of new vehicles. Residential EVSE installation financing is also available.
The consumers will also get rebates of up to $1000 on purchase or lease of electric vehicles. Furthermore, there is a decreased rate of charge based on off-peak TOU-based rates. Used EV rebates are also available up to $1500.
Colorado
The State of Colorado offers a tax credit on electric motorcycle of up to $4000 under House Bill 1159 enacted recently in 2019. The state also has different grants for EV users. You will also get an exception from Colorado motor vehicle emissions inspections.
A rebate available on your EVSE installation can cover your installation costs up to 70 percent that can be up to $500.
Plus, you will get a free installation of the EVSE level 2 charger as an additional incentive. But no rule will incentivize your purchase or acquisition of a new electric vehicle.
Connecticut
This state offers rebates on all EV and hydrogen-based vehicles under its CHEAPR program. The consumers can get rebates of up to $5000 on purchasing or leasing these vehicles.
But you need to keep in mind that the eligible vehicle must not exceed in price over $60,000 for the FCEVs and $42,000 for EV models. There are different EVSE and EV rebates available that Norwich utility sponsors.
The rebates available under this program are up to $1000 per vehicle. This program also offers a $2000 rebate on the purchase and installation of EVSE. Moreover, you will get a reduction in your registration fee as per state law.
Delaware
Delaware runs a clean vehicle rebate program, and all newly purchased or leased alternative fuel vehicles are covered. These rebates will range from $1000 to $2500 for new PHEVs and BEVs, respectively.
But the vehicle price should not exceed $60,000. There are EVSE rebates available, too, where they cover up to 75% of the installation cost.
If these RVSE units, the max rebate amounts you can get here ranges from $3500 for a single port installation to $7000 for a dual-port installation.
Moreover, the Delaware Electric Cooperative offers a 1-time $200 billing credit if you refrain from charging during off-peak times.
Florida
The Florida State Government has a special EVSE financing scheme that goes hand in hand with the EV rebate for all consumers who purchase or lease new electric vehicles.
The rates will rely heavily on the battery size and the program under which this facility is available in the Jacksonville Electric Authority.
Another Orlando Utilities Commissions program offers a rebate of $200 for customers looking to purchase or lease a new bike or any other electric vehicle.
Moreover, the Kissimmee Utility Authority runs a program that offers a rebate of $100 on purchasing an EV or EVSE installation. Duke Energy‘s Park & Plug programs offer a free level 2 charger along with a DC fast charger.
Georgia
The State has an EVSE rebate program for its residential customers that will provide a tax incentive of $250 on a level 2 charger.
Furthermore, under the Georgia Power Program, there are certain TOU-based decreases in rates for residential customers who have an e-bike or an electric vehicle.
Hawaii
Hawaii has recently introduced an EVSE rebate program that Hawaii Energy runs. Their debates offered here are for the installation and upgrade of EVSE and can go up to $4500 and $3000, respectively.
Moreover, direct current fast chargers are also available for rebates that can go up to $35,000 and $28,000 for installation and upgrade, respectively.
Total rebates under this program are capped at $500,000 per fiscal year. The state also extends various TOU-based charging rate discounts to its consumers.
Illinois
The state started providing tax benefits to its customers by reducing registration fees. But later on, it provided exemptions from the Illinois motor vehicle emissions inspection.
Later on, it also introduced the EV financing scheme and reduced charging rates under the Illinois Electric Cooperative program.
Under these programs, the consumer will get a reduced rate of utility charge as per the time of use. So, you will get a reduced rate if you don’t charge your vehicle during peak times.
Indiana
Indiana offers special charging rates to its EV consumers under a program governed by the Indianapolis Power & Light Company. This program provides the consumers to use the utility at much lower rates with TOU-based decrement.
There is another program that Indiana Michigan Power governs and provides consumers with lowered charging rates for their electric vehicles.
Lowa
Alliant Energy is offering a $5000 rebate to all residential consumers who opt to buy level 2 chargers in the State of Iowa. Under MidAmerican Energy, residents can enjoy $500 for purchasing any new electrical vehicle.
The state also has a tax rebate of $1500 available for non-residents, and this rebate is applicable on the purchase and install of a level 2 charging station.
Louisiana
The State has tax credit on electric motorcycle available for infrastructure and AFV fueling that can go up to $2500. The tax credit is up to 10%.
Moreover, there is an EVSE rebate of $250 available on installing a level 2 charger that is Energy Star certified. Entergy also provides some incentives to its customers if they use level 2 chargers.
Maine
There are different rebates available in this state, and they can go as high as $3000 for BEVs and $1500 for PHEVs. But to get these incentives, you will have to disclose your income information.
You can also get an EVSE exemption provided by an entity that solely provides electricity for EV battery charging based on the kilowatt-hours you have used.
Maryland
The State of Maryland grants you an exception from emissions inspection. You will also get a charging rate incentive based on time of use. If you go for a level 2 charger, you will also get an EVSE rebate of up to $300. You can also get a 50 percent discount on installation costs of up to $7500.
Maryland is also running a program to incentivize any off-peak usage. You can earn up to 2 cents per kilowatt-hours consumed when charging your vehicle.
EVSE system installation rebate is available up to $300 under various programs run by different governing bodies and utility companies such as Potomac Edison, Baltimore Gas & Electric, and Delmarva Power.
Massachusetts
There are various rebates available here under the MOR-EV program. The refunds available here can go up to $2500 for FCEVs and BEVs and $1500 for PHEVs that must be under $50,000.
The state grants exemptions from exemption inspections. Plus, you can avail yourself of $8 per month as your bill credit through the EV reward program governed by Braintree Electric Light Department. This department also offers a rebate of $250 on buying a level 2 charger under the program.
You can avail of EVSE installation incentives, and non-residents can enjoy this benefit by installing level 2 and DC fast charging. Mass Energies Drive Green program will reward you with EV discounts too.
Michigan
The state has a couple of programs that DTE Energy and Consumer Energy PowerMIDrive direct. These programs provide the customer with rebates of up to $500 and $400, respectively. But you are not going to get any rebates on new vehicle procurement.
Minnesota
The state is currently piloting a program that targets electric vehicles on Tolls. PHEVs are eligible for a credit of $125, and BEVs are eligible for $250. There are discounts in EVSE installation and charging rates too under Dakota Electric and Connexus Energy.
Lake Region Electric Co also gets reduced electricity rates based on time-of-use. Furthermore, Otter Tail Power Co, Runestone Electric Association, and Xcel Energy also have different customer rebates.
Nebraska
Omaha Public Power District has a program running that provides rebates of up to $2500 for buying new and getting a level 2 charger with a rebate of $500. Nebraska Public Power District is also running a similar program that covers commercial usage.
Furthermore, Southern Public Power District focuses on residential consumers and offers rebates of up to $4500 on EVSE and EV. If you go for a qualified charger, you will get an additional rebate of $500 and an additional $100 if you choose a pre-wired model.
Nevada
Nevada provides you with an exemption from your emissions inspections and will reduce your TOU rates if you go for chagrin during off-peak times. There are different rebate rates, the type of infrastructure, and the project.
New Hampshire
There are EV and EV rebates available along with TOU-based charging states from the New Hampshire Electric Cooperative.
These rebates can go up to $1000 for purchasing or leasing BEVs and $600 for purchasing or leasing PHEVs. There is a $300 rebate available for buying a level 2 charger.
New Jersey
There are different EVSE grants and rebates that the state of New Jersey provides you with. These can reach up to $5000 for buying or leasing a new electric vehicle. The state is also running a toll discount program for electric-powered vehicles.
New York
They have a rebate program running that can provide you with rebates of up to $2000 on buying a new EV.
Another program named Charge Ready NY can cover up to $4000 in rebates per port. They also provide you with emissions inspection exemption and various other TOU-based rate reductions.
North Carolina
The state grants you emissions inspection exemption. You can also go for TOU-based rate reduction and EVSE rebate, which can be up to $100 for level 2 charger installation.
Ohio
Ohio also has vehicle emissions inspection exemption in the palace for EV users. But they have introduced EVSE incentives that American Electric Power Ohio governs. You will get incentives for the installation of DC fast chargers and Level 2 chargers.
Oklahoma
The Oklahoma State Government has a tax credit for alternative fuel infrastructure. But for lightweight vehicles and electric motorcycles, there are only rebates available on EVSE. With this rebate, you will be eligible for a $250 discount if you go for a level 2 Energy Star charger.
Oregon
They have a rebate of up to $2500and you can also get a discounted EVSE installation. There is a discount on EV registration, and you will get TOU-based rates discounts too.
Pennsylvania
EV rebates of up to $50 are available through PECO on purchasing new electric vehicles. Duquesne Light Company offers a $60 bill credit on buying or leasing an EV or an electric bike.
Rhode Island
This state only has an EVSE installation program that promotes level 2 chargers and an exemptions scheme from emissions inspection.
Texas
They have multiple EVSE rebate programs governed by United Cooperative Services, Southwestern Electric Power Co, Entergy, Austin Energy, and CPS. With these programs, you will get rebates of up to $1200 on purchasing or leasing EVs and installing a level 2 charger.
Utah
All-electric vehicles are exempt from emissions inspections. They also provide a $200 rebate on EVSE installation and have TOU-based discounted rates.
Vermont
Various programs are running in this state that govern tax benefits to EV users. These include the likes of Green Mountain Power, Burlington Electric Department, Vermont Public Power Supper Authority, Stowe electric, and Vermont Electric Cooperation.
The rates are available up to $1000 on purchase and lease of EVs along with bill credits EVSE rebates.
Virginia
Virginia has Appalachian Power Co and Dominion Energy, which are currently providing rebates to their costumes in terms of EVSE incentives and EV TOU rates.
Washington
Various grant programs are running, including the one that the Washington State Department of Transportation spearheads. They exempt the EV users from the Sales and use tax applied on EVSE and EV.
Wisconsin
Pierce Pepin Co, Riverland Energy, Price Electric, East Central, Chippewa Valley Electric, Barron Electric, Madison Gas & Electric, and Alliant Energy provide incentives and benefits to EV users the residents of these states.
District of Columbia
The state provides an exemption in excise tax title of your, and you will also get a reduction in the registrations fee on your EV.
List of States Where Legislation on Tax Incentives is in Progress
The following list of states have some incentives in place and are planning to introduce more for the EV users:
- Idaho
- Mississippi
- Missouri
- Montana
- Tennessee
List of States with No Incentives
Here’s the list of the states that don’t have any incentives on offer to electric vehicle owners, either small or large, or commercial or residential.
- Alabama
- Kansas
- Kentucky
- New Mexico
- South Carolina
- South Dakota
- West Virginia
- Wyoming
FAQs
Is there any difference between a rebate and a tax credit?
The tax credit on electric motorcycle is the amount that a taxpayer can minus from their taxes that s/he owes to the government. At the same time, a rebate is the return of a smaller portion of the purchase price. Both are benefits, but they have different treatments in a taxpayer’s book.
Are federal incentives applicable in states that don’t have any EV incentives?
Yes, federal incentives are applicable in the states where there are no EV incentives in place.
You are eligible for a 10 percent credit (up to $2500) with the federal tax credit on electric motorcycle if you own an electric motorcycle that can go at least 45 miles an hour. You are also eligible for a $1000 rebate for EVSE systems at your home, as per federal laws
When will I receive my tax credit on electric motorcycle?
You will file this tax credit on electric motorcycle with your tax return for the fiscal year you have purchased your electric vehicle or motorcycle. You can consult a tax expert if you need more assistance in this regard.
Which state has the most benefits on offer for EV users?
California is leading the way with most incentives for electric motorcycle users, but some other states offer similar benefits. They include Massachusetts, New York, Colorado, and Delaware.
What is the purpose of tax credit on electric motorcycle and rebate serving?
These tax credit on electric motorcycle and rebates are there to promote the sales of these electric motorcycles and vehicles. Being newer to the world, these electric vehicles are expensive upfront, but their maintenance is cheaper than conventional vehicles.
Therefore, governments and corporations are bringing the consumers towards using these electric motorcycles and vehicles to reduce environmental impact. And hence, they provide them with different tax credits and rebates.
Conclusion
Most of the states in the US are focusing on introducing different tax incentives to electric vehicle owners. Some states like California, Delaware, Massachusetts, Colorado, and New York have already passed the benefits to electric vehicle users.
While others are joining in pretty thick and fast. But some states like Alabama, Kansas, Kentucky, and Wyoming are still to make any progress in this regard. With the issue of global warming getting ever so important, they can’t just hold out for long.
