Power up Your Savings: Exploring New York EV Tax Credits & Charging Incentives

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Content Table

New York Electric Vehicle Tax Credits, Rebates and Incentives

New York EV Charger Rebates

EV Charging Rates in New York

Home Electrification Incentives in New York

Photo by:Mobileye

Welcome to your one-stop resource for navigating the electrifying world of EV in New York! As the state gears up for a greener future, with a mandate for all new vehicles sold to be zero-emission by 2035, now is the perfect time to dive into what New York offers to make EV ownership not just environmentally friendly but financially rewarding.

This blog aims to keep you updated with the latest on EV incentives, from rebates and tax credits to charging infrastructure developments. Whether you're considering your first EV, looking to upgrade your charging setup, or just curious about the green wave sweeping New York, we've got you covered. Stay tuned as we explore each incentive in depth, provide real-world tips, and keep you abreast of any new policies or adjustments that could affect your electric vehicle journey. Let's drive into the future together, with savings and sustainability in the forefront!

New York Electric Vehicle Tax Credits, Rebates and Incentives

New York State plans to phase out the sales of internal combustion engine (ICE) vehicle by 2035. To support EV adoption, the state and utilities have launched several programs to make EVs and EV charging services more accessible to New York residents and businesses.

In this guide, we will explore electric vehicle tax credits, rebates, and incentives in The Empire State and how residents can benefit from existing initiatives to support electrification.

New York Drive Clean Rebate for Electric Vehicles

If you're in the market for a battery electric or a plug-in hybrid vehicle, you should know that over 60 models qualify for a New York state rebate of up to $2,000 through the NY Drive Clean Program.

Participating dealers can offer you a rebate at the time of purchase or lease, and then you must register in New York State. Rebate amounts vary based on the vehicle's MSRP and all-electric range.

In order to receive a full rebate, you must purchase an EV with a range of 200 miles or more or sign a 36-month lease. If the range is between 40 and 199 miles, you'll qualify for a $1,000 rebate. For models with a shorter range or an MSRP of more than $42,000, the Drive Clean rebate is $500. For more information, click here for a list of eligible models.

The New York EV rebate does not include used vehicles. Only new vehicle purchases or signed leases with a term of 36 months or longer are eligible.

High Occupancy Vehicle (HOV) Lane Exemption

The New York State Department of Motor Vehicles allows eligible plug-in electric vehicles (PEVs) and plug-in hybrid electric vehicles (PHEVs) to use the Long Island Expressway (LIE) HOV lanes, regardless of the number of passengers in the vehicle. Vehicles must display a Clean Pass vehicle sticker and there is no fee to apply.

For more information, visit the Clean Pass Stickers section of the NY Department of Motor Vehicle website.

Federal Tax Credits For Electric Vehicles

In addition to the New York State incentives for EVs described above, purchasers may be eligible for federal tax credits such as the Clean Vehicle Tax Credit of up to $7,500 for new vehicles and up to $4,000 for used clean vehicles. 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.

Zero Emission Vehicle Grants For New York Municipalities

The New York State Department of Environmental Conservation's (NYSDEC) Municipal ZEV Program offers rebates to cities, towns, villages, counties, and New York City boroughs for the purchase or lease of eligible zero-emission vehicles. Rebates of up to $7,500 are available, based on the vehicle's all-electric range and gross vehicle weight rating. Municipalities may apply for multiple ZEV rebates up to $375,000.

For more information, including eligibility requirements, see the NYSDEC Grants For Climate Action page.

New York EV Charger Rebates

In some areas of the United States, state government and local utilities offer rebates to drivers who purchase and install Level 2 EV chargers.

Unfortunately, New York homeowners are not able to take advantage of any state or utility programs that provide access to an upfront rebate for home charging stations. However, you can take advantage of a 30% federal tax credit and participate in the time-of-use programs discussed below to save on your electric bill for EV charging.

Charge Ready NY 2.0 EV Charger Rebate

The New York State Energy Research and Development Authority's (NYSERDA) Charge Ready NY 2.0 program provides rebates to public, private, and nonprofit organizations that install Level 2 EV charging stations at workplaces, multi-unit dwellings (MUD's) or public parking facilities. NYSERDA offers different incentives on a per-port basis, depending on the type of site and whether or not it is located in a Disadvantaged Community (DAC):

• $4,000 per charging port installed at a public facility (must be located in a DAC)
• $2,000 for each charging port installed at a workplace or multi-unit dwelling location.

An additional $500 incentive per charging port may be awarded for eligible charging devices installed at a workplace or MUD location if located in the DAC.

For fleet owners, the Charge Ready 2.0 program includes a $1,000 rebate per port.

For more information on eligibility requirements and more, see the Charge Ready NY 2.0 page.

New York State Tax Credit For EV Charging Stations

In New York, businesses that install qualifying EV chargers may be eligible for a state tax credit of up to $5,000 per charging station, or 50% of the cost of the property, whichever is less.

For more information, including eligibility requirements, see the Alternative Fuels and Electric Vehicle Recharging Property Credit page.

EV Charger Rebates From New York Utilities

Additional incentives for commercial and public charging programs are available through New York utilities. In fact, all the New York utilities participate in the EV Make-Ready Program, a plan with provisions for supporting fleet electrification, making it more affordable to install Level 2 and DC fast chargers, and prioritizing EV charging in disadvantaged communities.

Under the EV Make-Ready Program, if you deploy a DC fast charger or Level 2 charger in a disadvantaged community and meet some of the requirements for the type of plug used, you may qualify for a rebate of up to 100%.

If you are not in a disadvantaged community, but the charger will be available to the public, the EV charger rebate can be up to 90% of the total cost.

Other programs, such as workplace EV charging, multi-family EV charging with restricted access, and private pay-to-park lots, can be funded up to 50%.

Central Hudson EV Charger Rebate

The Central Hudson EV Make Ready Program provides installation and financial support to business and municipal customers to install qualifying Level 2 or DC fast EV charging stations. Additional funding is available for eligible projects located in underserved communities.

For more information, including terms and conditions, visit the EV Infrastructure Make-Ready Program page on the Central Hudson website.

ConEdison EV Charger Rebate

The ConEdison PowerReady EV Charging Infrastructure Program provides installation and financial support for business and municipal customers to install qualifying Level 2 or DC fast EV charging stations. Additional funding is available for eligible projects located in underserved communities.

For more information, including terms and conditions, see the PowerReady EV Program page on the ConEdison website.

National Grid EV Charger Rebate

The National Grid Electric Vehicle Charging Station Program provides installation and financial support to non-residential customers in Upstate New York to install approved Level 2 or DC fast EV charging stations at businesses, multi-family dwellings, and workplaces. Additional funding is available for eligible projects located in underserved communities.

For more information, including incentive eligibility levels, see the Commercial and Fleet EV Charging Programs page on the National Grid website.

NYSEG EV Charger Rebate

The New York State Electric and Gas (NYSEG) Level 2 and Direct Current (DC) Fast Charger Make Ready Program provides installation and financial support for business and municipal customers to install approved Level 2 or DC fast electric vehicle charging stations. Additional funding is available for eligible projects located in underserved communities.

For more information, including incentive eligibility levels, see the Electric Vehicle  Charger Make-Ready page on the NYSEG website.

Orange & Rockland Utilities EV Charger Rebate

The Orange & Rockland POWERREADY EV Program provides installation and financial support for commercial customers to install approved Level 2 or DC fast EV charging stations. Additional funding is available for eligible projects in underserved communities.

For more information, including incentive eligibility levels, see the POWERREADY EV Program page on the Orange & Rockland website.

PSEG Long Island EV Charger Rebate

Public Service Enterprise Group (PSEG) Long Island offers incentives to customers to own and operate DC Fast Charging Stations (DCFC). The amount of the incentive depends on eligibility year, DCFC power rating and charging equipment configuration. Funds are awarded on a first-come, first-served basis.

For more information, see the DC Fast Charge page on the PSEG Long Island website.

Rochester Electric & Gas EV Charger Rebate

Rochester Gas & Electric (RG&E) Level 2 and DC Fast Charger Make Ready Program provides installation and financial support for business and municipal customers to install approved Level 2 or DCFC charging stations. Additional funding is available for eligible projects located in underserved communities.

For more information, including incentive eligibility levels, see the Electric Vehicle Charger Make-Ready page on the RG&E website.

EV Charging Rates in New York

New York's utilities also offer special time-of-use (TOU) and off-peak rates for EV drivers, designed to encourage charging of vehicles at specific times of the day.

Below is a list of TOU rate plans offered by New York's major utilities.

ConEdison TOU Incentives For EVs

ConEdison offers two options for saving money on EV charging electricity rates. The first is a switch from standard billing to the utility's Time-of-Use program. Rates vary based on demand and production, and if you charge your EV between midnight and 8 A.M., you'll pay as little as $0.02 per kWh.

Another option is to join ConEdison's SmartCharge program. You'll need to install a separate smart meter for your EV. Once you're enrolled, you can earn and stack a variety of rewards, including $25 after your first three months of smart charging, a rebate of $0.10 per off-peak kWh used for EV charging, and a $35 monthly bonus from June 1st to September 30th if you don't charge between 2 P.M. and 6 P.M on weekdays. If you successfully avoid charging during all these peak periods, ConEdison will reward you with another $35.

For more information, including how to sign up, visit the EV Rates page on the ConEdison website.

Central Hudson TOU Rate For EVs

Central Hudson offers a TOU rate for residential customers that own or lease an eligible EV. Designed for residents who own electric vehicles, the EV Time-of-Use Rate allows owners to purchase electricity at a lower rate during the hours when home vehicle charging is expected to be most frequent - after 7 P.M. and before 2 P.M. This optional billing method converts your residential electric account to a time-based rate, billing you at a higher cost during peak demand hours (2 to 7 P.M.) and at a lower cost at other times.

By charging your car during lower-demand hours and shifting most of your other energy use to the same time structure (when the Whole Home option is selected), you may benefit from a lower bill.

For more information, including how to sign up, visit the Electric Vehicle Time of Use Rate page on the Central Hudson website.

National Grid EV TOU Rate

National Grid customers have access to the innovative TOU program, which uses a tier-based model rather than a per-kWh charge. You can enroll in Tier 1 and pay $20 for a 225 kWh charge between 11 P.M. and 7 A.M., or enroll in Tier 2 and pay $30 for a 365 kWh charge. These two options translate to paying about $0.08 per kWh. It's important to note that participation in the program requires an EV or EVSE that is  compatible with the National Grid app.

For more information, including how to enroll, visit the Charge Smart NY page on the National Grid website.

Orange & Rockland Utilities EV TOU Rate

As an Orange & Rockland customer, you can earn a $25 bonus if you enroll in the utility's SmartCharge program, which pays $0.07 per kWh if you charge between midnight and 8 A.M. You’ll earn $35 per month if you avoid charging between 2 P.M. and 6 P.M. from June to September.

Orange & Rockland also offers a TOU program. It includes a lower monthly service charge, and rates are as low as $0.02 if you charge between 9 P.M. and 10 A.M.

NYSEG OptimizEV Off-Peak Rate Programs

NYSEG's OptimizEV program offers two tiers of participation for different home EV charging routines.

In the Baseline Tier, if you shift 80% or more of your home charging to off-peak hours, you can earn a $25.00 one-time enrollment incentive and a monthly ongoing incentive.

In the Advanced Tier, you can earn a $150.00 one-time enrollment incentive for scheduling smart charging periods that include the amount of charging you need and when you need it by, and allowing NYSEG to manage the amount of power your EV receives during scheduled charging periods to maximize the benefits to the grid.

Learn more at the OptimizEV page and the Time of Use Program Calculator page.

Home Electrification Incentives in New York

In 2024, New York is expected to provide home energy rebates through the Inflation Reduction Act, making $159.3 million in home energy efficiency rebates and $158.4 million in home electrification rebates available for appliance rebates, insulation and air sealing, heat pumps for space and water heating, and upgrades these 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 environment impact.

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

EmPower+ Home Electrification Incentives and Rebates

EmPower+ helps low- and moderate- income households save energy and money on energy improvements made to their primary residence. Eligible energy-saving improvements include insulation, air sealing, health and safety items, and replacement of inefficient refrigerators/freezers units.

• Low-income, single-family households are eligible for free energy efficiency improvements up to a maximum of $10,000 per project.
• Moderate-income single-family homes are eligible for freeenergy efficiency improvements up to a maximum of $5,000 per project.

In addition to EmPower+, New Yorkers are also eligible for Home Electrification Appliance Rebate (HEAR) funding. The total amount of HEAR incentives a household is eligible to receive is based on the combination of energy efficiency improvements. The maximum incentive limits for each improvement are listed below:

• Air sealing, insulation and ventilation: $1,600
• Electrical service upgrades (panel boxes): $4,000
• Electrical wiring upgrades: $2,500
• Heat pump water heaters: $1,750
• Heat pumps: $8,000

EmPower+ contractors can help determine necessary improvements and what households are eligible for through a home energy assessment.

Battery Storage

Currently, there are no state or utility incentives for battery storage in New York. 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 the 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 residence.

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 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 may be able to apply 25D to electrical panel costs as well.

Heat Pumps & Heat Pump Water Heaters

The New York State Clean Heat Incentive offers homeowners the opportunity to switch to heat pumps and other clean, efficient energy solutions, such as electric panel upgrades and home weatherization measures. The amount of the New York State Clean Heat Incentive may vary depending on your area and electric utility.

• Cold-Climate Air Source Heat Pumps: up to $3,000 NYS Clean Heat Incentives for whole home solutions
• Geothermal (Ground Source) Heat Pumps: up to $9,000 NYS Clean Heat incentives for whole home solutions
• Heat Pump (Hybrid) Water Heaters: up to $1,000 NYS Clean Heat incentive for whole home solutions

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

New York’s state tax credit for solar is worth 25% of the total system cost, up to a maximum of $5,000. The system must be installed and used at your principal residence in New York State.

In addition, New York's Megawatt Block Incentive offers upfront solar rebates of up to $800 per kilowatt (kW) for both commercial and residential systems. The amount of your solar rebate depends on the size of your system, your region, and your income.

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

As we’ve explored, New York is making significant strides to encourage electric vehicle adoption through a variety of tax credits, rebates, and charging incentives. Whether you’re a first-time buyer or considering an upgrade, taking advantage of these programs can lead to substantial savings and contribute to a cleaner environment.

By leveraging these incentives, not only can you reduce the upfront costs of purchasing an EV, but you can also benefit from lower operating costs in the long run. Plus, the growing network of charging stations throughout the state makes it easier than ever to embrace electric driving.

As policies evolve and more incentives are introduced, staying informed is crucial. Be sure to check state resources and local programs regularly to maximize your benefits.

In conclusion, transitioning to an electric vehicle in New York isn’t just a smart financial move; it’s a step toward a more sustainable future. Power up your savings and join the growing community of EV drivers making a positive impact on our planet!