End of Federal Support
The federal incentive program for electric vehicle buyers has come to an end. As of September 30, 2025, the US government officially stopped funding your next electric car, causing concern among automakers about a sharp drop in demand.
State Alternatives
However, this does not necessarily mean a complete absence of any assistance. Depending on where you live, your state may still support you with its own tax credit scheme.
Who Continues to Support?
Some states remain extremely tight-fisted with funds, meaning there is no universal discount like the former federal assistance of $7,500. According to new data from the Tax Foundation, the situation at the state level resembles a patchwork mosaic of benefits, penalties, and bureaucracy.
While some states still roll out the red carpet for electric vehicles, others quietly burden owners with new registration fees to compensate for lost fuel tax revenue, highlighting the differing attitudes towards green policy across the country.
Ford and General Motors canceled an electric vehicle tax credit loophole after allegations of fraud with taxpayer funds.
Several states remain firmly on the buyer’s side, including Colorado, which from November this year will provide subsidies of up to $9,000 to low- and middle-income families who trade in an old gasoline car for a new electric vehicle, and up to $6,000 for a supported one.
Oregon and Maine offer credits of $7,500, Oklahoma provides up to $5,500, and Connecticut and Vermont will reduce the price of your electric vehicle by $5,000. Illinois, Kansas, and New Jersey make $4,000 available, and various other states will add from $1,500 to $3,500 to encourage you to switch to electric transport.
Where Electric Vehicles Cost More
Then come the less friendly states. Georgia has no electric vehicle incentives at all, and drivers pay $235 per year just to register their electric vehicle. Indiana is likely even worse: there are also no electric vehicle incentives, a $230 fee is charged for registering such a vehicle, and $77 for registering a hybrid.
Perhaps unexpectedly, given its history of leadership on environmental issues, California no longer offers state assistance to electric vehicle buyers. Governor Gavin Newsom recently stated that it is currently economically unviable to provide assistance, although his office later suggested that a scheme could be introduced next year.
Some states not only rely on electric vehicle registration fees to help compensate for lost gasoline sales revenue but also add a tax on the cost of charging at public charging stations. Such states include Georgia, Iowa, Kentucky, and Oklahoma, reports the Tax Foundation, also noting a flaw in their plan: drivers who charge at home avoid this fee.
Electric Vehicle Tax Credits by State
| State | Electric Vehicle Purchase Tax Credit | Annual Electric Vehicle Registration Fee | Annual Hybrid Registration Fee |
| Alabama | 0 | $203 | $103 |
| Alaska | 0 | 0 | 0 |
| Arizona | 0 | 0 | 0 |
| Arkansas | 0 | $200 | $100 |
| California | 0 | $118 | 0 |
| Colorado | $3500 | $60.05 | 0 |
| Connecticut | $750-$5000 | 0 | 0 |
| Delaware | $1000-$2500 | 0 | 0 |
| Florida | 0 | 0 | 0 |
| Georgia | 0 | $234.97 | 0 |
| Hawaii | 0 | $50 | 0 |
| Idaho | 0 | $140 | $75 |
| Illinois | $4000 | $100 | 0 |
| Indiana | 0 | $230 | $77 |
| Iowa | 0 | $130 | $65 |
| Kansas | Up to $4000 | $165 | $70 |
| Kentucky | 0 | $120 | $60 |
| Louisiana | 0 | $110 | $60 |
| Maine | Up to $7500 | 0 | 0 |
| Maryland | $3000 | $125 | $100 |
| Massachusetts | Up to $3500 | 0 | 0 |
| Michigan | 0 | $160 | $60 |
| Minnesota | 0 | $75 | 0 |
| Mississippi | 0 | $150 | $75 |
| Missouri | 0 | $135 | $67.5 |
| Montana | 0 | $130-190 | $70-100 |
| Nebraska | 0 | $150 | $75 |
| Nevada | 0 | 0 | 0 |
| New Hampshire | 0 | $100 | $50 |
| New Jersey | Up to $4000 | $260 | 0 |
| New Mexico | Up to $3000 | 0 | 0 |
| New York | Up to $2000 | 0 | 0 |
| North Carolina | 0 | $214.5 | $107.25 |
| North Dakota | 0 | $120 | $50 |
| Ohio | 0 | $200 | $150 |
| Oklahoma | Up to $5500 | $110 | $82 |
| Oregon | Up to $7500 | $115 | $35 |
| Pennsylvania | Up to $3000 | $200 | $50 |
| Rhode Island | Up to $1500 | $200 | $100 |
| South Carolina | 0 | $60 | $30 |
| South Dakota | 0 | $50 | 0 |
| Tennessee | 0 | $200 | $100 |
| Texas | 0 | $200 | 0 |
| Utah | 0 | $130.25 | $56.5 |
| Vermont | Up to $5000 | $89 | $44.5 |
| Virginia | $2500 | $131.88 | 0 |
| Washington | 0 | $150 | $75 |
| West Virginia | 0 | $200 | $100 |
| Wisconsin | 0 | $175 | $75 |
| Wyoming | 0 | $200 | 0 |
Tax Foundation
We have simplified this table from the Tax Foundation. The original contains notes about which states offer other assistance, such as sales tax exemptions or a mileage-based taxation option instead of paying a registration tax.
The conclusion is that the cancellation of federal tax credits by the government does not necessarily mean you can no longer afford this electric vehicle. You just need to check what position your state takes on this issue. The difference in approaches between states can be very significant – from thousands of dollars in assistance to hundreds of dollars in additional annual costs, making geographic location one of the key factors when buying electric transport in modern conditions.