Electric Vehicle Incentives
There are valuable Federal, state and utility incentives* that can help you pay for your electric vehicle and home charging. From the ITC credits you’ll receive for the purchase of an EV, solar and storage to local state and utility rebates, now is a great time to use sustainable energy for your home and car!
Federal Investment Tax Credit
Beginning January 1, 2023, if you buy a qualified used electric vehicle (EV) or fuel cell vehicle (FCV) from a licensed dealer for $25,000 or less, you may be eligible for a used clean vehicle tax credit (also referred to as a previously owned clean vehicle credit). The credit equals 30% percent of the sale price up to a maximum credit of $4,000.
The credit is nonrefundable, so you can’t get back more on the credit than you owe in taxes. You can’t apply any excess credit to future tax years. Learn more.
Electric Vehicle Chargers do will qualify for ITC credits when combined with a home residential solar system or storage installation. Make sure to include all your energy efficiency upgrades as part of your SUNSOLAR SOLUTIONS contract to receive the greatest value.
Local Utility Incentives
The state of Arizona has a plethora of favorable laws, incentives, regulations, funding opportunities, and other initiatives related to alternative fuels and vehicles, advanced technologies, or air quality. Below outlines the Utility incentives.
Arizona Public Service Company (APS)
- Electric Vehicle (EV) Time-Of-Use (TOU) Rate – APS offers a TOU rate for residential customers that own an EV. For more information, see the APS EVs and Rates, Schedules and Adjustors websites.
- Electric Vehicle (EV) Charging Station Rebate – APS offers residential customers a $250 rebate for the purchase of a qualifying Level 2 EV charging station. Additionally, customers who enroll in the APS Smart Charge Program may earn an $85 bill credit every year. For more information, including eligibility requirements, see the APS EV Smart Charger Rebate and SmartCharge Rewards websites.
- Electric Vehicle (EV) Charging Station Pilot Program – APS offers free EV charging stations, installation, maintenance, and educational services to its workplace, fleet, and multi-unit dwelling customers through the Take Charge AZ pilot program. For more information, including eligibility, see the APS Take Charge AZ website.
Salt River Project (SRP)
- Residential Electric Vehicle (EV) Charging Station Rebate –SRP offers residential customers a $250 rebate for the purchase of a qualifying Level 2 EV charging station. A $50 bill credit is available for customers who join the SRP EV Community. For more information, including eligibility requirements, see the SRP EV Benefits and Savings website.
- Electric Vehicle (EV) Time-Of-Use (TOU) Rate – SRP offers a TOU rate for residential customers that own or lease an EV. For more information, including how to enroll, see the SRP EV Price Plan website.
- Commercial Electric Vehicle (EV) Charging Station Rebate – SRP offers rebates to commercial customers who install networked Level 2 or direct current fast charging (DCFC) stations. Government, non-profit, school, and multifamily customers are eligible for higher rebate amounts.
| EV Charging Station Type | Standard Rebate | Increased Rebate |
|---|---|---|
| Networked Level 2 | $1,500 per port; up to 75 ports | $4,000 per port; up to 75 ports |
| DCFC | $15,000 per port; up to three ports | $20,000 per port; up to three ports |
EV charging stations must be installed between May 1, 2022, and April 30, 2023. Rebates are available on a first-come, first-served basis. For more information, including how to apply, see the SRP Business EV Charger Rebate website.
Commercial Electrification Rebates
SRP offers commercial customers rebates for the purchase or lease of electric forklifts, electric truck refrigeration units (TRUs) charging infrastructure, truck charging bays, electric vehicle (EV) charging stations, and custom electrification projects. Equipment must be installed between May 1, 2021 and April 30, 2022. Rebate amounts for each technology type are as follows:
| Technology | Rebate Amounts |
|---|---|
| Class 1 or 2 Electric Forklift | Up to $2,000 per forklift |
| Electric Forklift Charger | $150 per charger |
| Scrubbers and Sweepers | $450 per scrubber or sweeper |
| Scissor and Boom Lift | $750 per scissor or boom lift |
| Electric TRU Charger | $1,000 per port |
| Truck Stop and Truck Fleet Charging Bay | $1,000 per bay |
| Custom Electrification Project | $0.10 per annual kilowatt-hour load added by each piece of medium- or heavy-duty equipment |
Applicants may receive up $50,000 in rebates. For more information, including eligibility requirements, see the SRP Electrification Rebates website.
Commercial Electrification Assessment Incentives
SRP offers commercial customers rebates of up to $20,000 for completing an electrification fleet assessment through the Fleet Advisory Services Program. Eligible fleets include may include light-, medium-, and heavy-duty vehicles. Rebate amounts vary by fleet size and vehicle classification. For more information, including eligibility requirements, visit the Electrification Rebates and Business EV Charger Rebate website.
Tucson Electric Power (TEP)
- Electric Vehicle (EV) Charging Station Rebate – TEP offers residential customers a rebate of up to $500 for the purchase of a Level 2 or direct current fast charging (DCFC) station. Rebate amounts vary by EV charging station amperage. For more information, including how to apply, see the TEP EV Rebates website.
- Electric Vehicle (EV) Charging Rates – TEP offers three time-of-use (TOU) rates for residential customers with EVs. For more information, see the TEP Rates for EV Owners website.
- Commercial Electric Vehicle (EV) Charging Station Rebate (TEP) – TEP offers rebates and technical support to businesses, multifamily dwellings, and non-profit customers that purchase and install between two to six EV charging station ports. TEP will evaluate the electrical capacity and supporting EV charging station infrastructure at locations that install six or more ports on a case-by-case basis. Higher rebates are available for commercial customers located in low-income areas. Low-income areas are defined as U.S. Census tracts where the average household income does not exceed 80% of the median Arizona household income. Rebates are available in the following amounts:
| EV Charging Station Type | Location | Rebate | Low-Income Area Rebate |
|---|---|---|---|
| Level 2 | Workplace | $4,000 per port; up to 75% of project cost | $6,000 per port; up to 75% of project cost |
| Level 2 | Multi-Family Dwelling or Non-profit Organization | $5,400 per port; up to 85% of project cost | $9,000 per port; up to 85% of project cost |
| Direct Current (DC) Fast Charger | All | $20,500 per port; up to 75% of project cost | $40,000 per port; up to 75% of project cost |
For more information, including project eligibility and how to apply, see the TEP Smart EV Charging Program website.
Mohave Electric Cooperative (MEH)
- Electric Vehicle (EV) Charging Station Rebate – MEH offers residential and commercial customers rebates for the purchase of networked Level 2 or direct current fast charging (DCFC) stations. Residential and commercial customers are eligible for rebates of $1,000 and $2,750, respectively. For more information, see the MEH EV Charging Rebate website.
Manufacturers Discounts
If you bought and placed in service a new qualified plug-in electric vehicle (EV) or fuel cell vehicle (FCV) on January 1, 2023 or later and meet certain income limitations, you may be eligible for a clean vehicle tax credit up to $7,500 under Internal Revenue Code Section 30D.
Qualified Manufacturers of the vehicles listed below have indicated that the vehicles are currently eligible for a credit provided other requirements are met. Check back for additions to this list.
For vehicles purchased in 2022 or before, credit eligibility was determined under different criteria.
*Ask your representative about which incentive you’re eligible to receive. Please consult a tax advisor on your ability to claim these nonrefundable tax credits.
