Plug into Profits: Exploring Washington State EV Tax Credits & Charging Incentives

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Washington State Electric Vehicle Tax Credits, Rebates and Incentives

Washington State EV Charger Rebates

EV Charging Rates in Washington State

Home Electrification Incentives in Washington State

As the demand for electric vehicles (EVs) continues to rise, Washington State is leading the way in promoting green transportation with an array of attractive tax credits and incentives. Whether you're considering making the switch to an EV or already own one, these financial benefits can significantly reduce the upfront costs of purchasing a vehicle and installing charging infrastructure. In this blog, we'll walk you through Washington's EV tax credits and charging incentives, so you can take full advantage of the state's commitment to sustainable transportation. From rebates for EV purchases to grants for home charging stations, there’s never been a better time to go electric in the Evergreen State.

Washington State Electric Vehicle Tax Credits, Rebates and Incentives

New grants will help communities statewide build and update charging EV infrastructure. 

Washington State's Instant Electric Vehicle Rebate Program for New and Used Vehicles

As a Washington State resident, you may be eligible for a range of incentives and rebates for new and used electric vehicle purchases or leases. Starting in August 2024, rebates of up to $9,000 are available for signing a three-year lease for a new EV.

New vehicle purchases and two-year leases are eligible for a separate $5,000 rebate.

A $2,500 rebate is available for purchasing and leasing a used EV.

Funding for the Washington EV initiative is from the state’s general fund, and certain income restrictions apply. For more information, visit the Washington EV Instant Rebate Program page.

Washington State Sales Tax Exemption for EVs
In addition, new or used clean alternative fuel and certain plug-in hybrid vehicles are eligible for sales and use tax exemptions from the Washington State Department of Licensing. The sales or use tax exemption is up to $16,000 of the sales or lease price for used vehicles and up to $15,000 of the sales or lease price for new vehicles.

The exemption is applied to the sales price or fair market value when you purchase or lease a passenger car, light duty truck, or medium duty passenger vehicle that is powered exclusively by a clean alternative fuel or capable of traveling at least 30 miles using only battery power.

For more information, see the Renewable Energy/Green Incentives section of the Washington Department of Revenue’s Incentives Programs website.

Federal Tax Credits For Electric Vehicles

Notably, purchasers may also be eligible for federal tax credits, such as up to $7,500 for the Clean Vehicle Tax Credit and up to $4,000 for the Used Clean Vehicle Tax Credit. Income limits as well as battery component and critical mineral limits may apply. Always consult a qualified CPA or tax professional to confirm your eligibility.

Utility Rebates For New & Used Electric Cars

Washington utilities have developed their own electrification programs for energy transition technologies such as electric vehicles.

For example, Clark Public Utilities (CPU) offers rebates of up to $2,000 to low-income residential customers for the purchase of a used EV. The vehicle purchase price may not exceed $20,000 and must be registered in Clark County. For more information, visit the CPU Electric Vehicle Program website.

Be sure to check with your local utility to find out what programs or products are available in your area.

Washington State EV Charger Rebates

In addition to the above incentives that are offered for purchasing an EV, Washington residents can also apply for a rebate, ranging from $100 to $1,000, for purchasing and installing Level 2 EV chargers.

Scroll down for more details on specific utility providers in Washington State.

Washington Utility Rebates for Level 2 EV Chargers & Installation

Clark Public Utilities (CPU) is offering rebates for residential customers who purchase and install a Level 2 EV charger, ranging from $100 to $500, with higher rebates for ENERGY STAR-certified chargers with Wi-Fi capabilities. For more information, including funding availability, visit the Electric Vehicle Program page on the Clark Public Utilities website.

Snohomish Public Utility District (PUD) is offering a $200 rebate to residential customers who purchase and install an eligible Level 2 ENERGY STAR-certified EV charger. Limit one rebate per household. For more information, see the Rebates for EV Chargers page on the Snohomish County PUD website.

Tacoma Public Utilities (TPU) offers a $400 rebate, in the form of a bill credit, to residential customers who install a Level 2 EV charger, a smart splitter, or a 240-volt outlet. Applicants are eligible for one rebate per installation, up to a total of $600. For more information, visit the EV charging page on the Tacoma Public Utilities website.

Non-Residential Utility Rebate Programs for EV Charging Stations

Clark Public Utilities (CPU) is also offering a rebate of up to $500 for commercial and industrial customers who purchase and install a Level 2 EV charger. Chargers must be Energy Star-certified and Wi-Fi enabled.

In addition, commercial and industrial customers who deploy a Level 3/DC Fast EV charger is eligible for an annual account credit of $1,500 per Level 3 charger. The Level 3 charger must be on Rate Schedule 134 (Rate Schedule 434 is not eligible for the demand charge bill credit incentive).

For more information, see the Electric Vehicle Program page for business customers on the Clark Public Utilities website.

Washington State EV Charger Grants

The Washington State Department of Ecology offers grants for the purchase and installation of Level 2 EV chargers for use at public, workplace, tribe, and multifamily housing locations. The maximum grant award is $10,000 per plug, up to 10 plugs. Eligible applicants include multifamily housing, nonprofit organizations, state and local government entities, businesses, and tribal governments. Applicants located in environmental justice communities will be given funding priority.

Additional terms and conditions apply. The program is funded by the Washington’s portion of the Volkswagen Environmental Mitigation Trust. For more information, including application guidelines, visit the Washington State Department of Ecology Volkswagen Enforcement Action Grants website.

EV Charging Rates in Washington State

Time-of-Use (TOU) rate plans offer lower electricity costs during off-peak hours like overnight. Below is a list of TOU rate plans offered by Washington's major utilities.

Special EV Charging Rates from Washington Utilities

Pacific Power offers residential, commercial and irrigation customers a TOU rate for charging EVs. You can save money by using energy during off-peak hours, when electricity demand is lower. Explore the options and choose the one that works best for you.

For more information, including pricing and eligibility and more, visit the Time of Use page on the Pacific Power website.

Puget Sound Electric (PSE) customers can earn rewards by adjusting their electric vehicle charging on days when demand for energy is forecast to peak. Sign up for PSE Flex EV and receive $50 upfront. In addition, you'll earn $0.50 for every kilowatt-hour of electricity saved during the Flex events. Plus, every month (except October and April), you'll be automatically entered to win one of two $250 gift cards just for enrolling.

For more information, including pricing and eligibility, visit the PSE Flex EV page.

Home Electrification Incentives in Washington State

In 2024, Washington State is expected to provide home energy rebates funded through the Inflation Reduction Act, making $82.7 million for home efficiency rebates and $166 million for home electrification funding available for appliance rebates, insulation and air sealing, heat pumps for space and water heating, and upgrades to the smart electrical panels necessary to enable those retrofits.

Combining EV ownership with other electrification projects, such as upgrading your home with solar panels & battery storage, or investing in a heat pump, will help you save even more while reducing your environmental impact.

In Washington, in addition to the U.S. federal government, you may qualify for home electrification incentives through your electricity provider. Scroll down to read details about rebates and incentives for specific home electrification technologies.

Battery Storage

Currently, there are no state or utility incentives for battery storage in Washington. However, the 25D Residential Clean Energy Tax Credit provides a 30% federal tax credit on the cost of new battery storage systems size 3 kWh and larger.

Electrical Panels

The 25C Energy Efficient Home Improvement Tax Credit provides a federal tax credit (up to 30% of project costs, capped at $600) for electrical panel upgrades needed to complete electrification projects such as heat pumps and heat pump water heaters. The 25C tax credits are available to renters and homeowners making upgrades to their primary or secondary home.

Qualifying electrical panels must meet the National Electrical Code (NEC) standards and have a capacity of 200 amps or more. This means that your new/upgraded electrical panel must be able to serve a load of at least 200 amps, but you do not need 200 amps of incoming utility service. Smart panels may qualify if they can serve a 200 amps load for you.

If you are applying for 25D for a residential solar or battery storage project and the installation process required you to upgrade your main panel, you can also apply the 25D to electrical panel costs as well.

Heat Pumps & Heat Pump Water Heaters

The 25C Energy Efficient Home Improvement Tax Credit also applies to heat pumps and heat pump water heaters. A 30% federal tax credit (capped at $2,000) is available. Eligible technologies must meet certain energy efficiency requirements.

Solar Panels

The 25D Residential Clean Energy Tax Credit also provides a 30% federal tax credit on the cost of photovoltaic (PV) solar panel systems.

With the combination of generous tax credits, rebates, and charging incentives, Washington State makes it easier than ever to transition to electric vehicles. These incentives not only help lower the cost of going green but also contribute to a cleaner environment by reducing carbon emissions and promoting sustainable energy practices. Whether you're planning to buy your first EV or upgrade to a more energy-efficient model, now is the perfect time to take advantage of Washington's financial support for electric vehicles. Be sure to stay up to date on the latest changes in policies and programs, and start driving towards a cleaner, more sustainable future today.