state incentives for green cars


Electric cars are available today and they are great for the environment. The only problem is not all people who are willing to buy a car would prefer to buy an electric one. There are many benefits of having and using green cars. There is even a positive effect on auto insurance premiums.

To make electric cars more tempting for buyers, the US government gives incentives to those who own an electric car. A tax credit of $2500 up to $7500 is given to every new purchase of an electric vehicle throughout the United States. The tax credit varies and will depend on various factors like battery capacity and vehicle size. 

Apart from the tax credit, other states offer more incentive for electric car buyers. Here is a list of the states that offer the best incentives whenever you purchase an electric vehicle. 


Topping the list is the state of Colorado. Here, you can purchase a Volt for only $22,000 when it is regularly priced at $34,995. Residents can receive a tax credit of $7500 plus additional $6000 credit from the state. 

The $6000 tax credit from Colorado is given to those whose car makes use or is converted to use alternative fuel. Hybrid electric cars fit into this category. 

Additionally, those who buy for their fleet can also take advantage of the Colorado Energy Office plus Regional Air Quality Council’s program


Connecticut shows that even if they are a small state, they still have big ideas with their cash on the hood rebate. With this, they instantly cut the sales price of the car so you don’t need to wait for a check or a tax credit. The price cut will depend on the car that’s purchased. 

Additionally, a reduction of the registration fee is also given. There are even some parts that give free parking for registered vehicles that use alternative fuel. 


Known as the land that’s rich in cultural uniqueness, Louisiana is also taking a step towards helping the environment through their 30% income tax credit for vehicles that use or are converted to use green fuel. Provisions of the said incentive are discussed in detail here


Tax credit against imposed excised tax is available for up to $3000 in the state of Maryland. There is a limit to this and is only available on a first-come, first-served basis. 

Additionally, a 40% rebate is also given for installing or getting a qualified EVSE or Electric Vehicle Supply Equipment. Before it is given, the applicants should be able to prove compliance with the laws regarding the installation of their qualified EVSE. 

Other States

These 4 are only the top of the list but there are also incentives offered by other states. If you wish to check what incentives are offered by the state you currently reside in, you can find them at the US Department of Energy website