Plugged In: How The North Carolina EV Incentives & Rebates Work
North Carolina is making impressive strides to incorporate EVs throughout the state. Electric vehicles present many promising economic opportunities for North Carolina, and many public transport modes and school buses are being replaced by electric versions of these vehicles.
At A Glance:
1️⃣ The governor of North Carolina aims to have 1.25 million plug-in hybrid electric vehicles registered and ready to use within the next ten years.
2️⃣ The biggest goal North Carolina has is to become carbon neutral by 2050.
3️⃣ Congress has put $5 billion towards charging infrastructure, and those who purchase an EV get a $7500 tax credit for buying a new electric car.
In this article, we’ll explore the EV incentives and rebates in North Carolina and how residents can benefit from switching to EVs.
Overview Of North Carolina’s Electric Vehicle Incentives
North Carolina recognizes the benefits of using EVs and offers residents a few different incentives.
There is a significant focus on transitioning from electric medium to heavy-duty vehicles and moving towards making the majority of cars in the state electric.
The incentives offered by North Carolina for EVs include the following:
- A home charger incentive is offered by Duke Energy for electrical upgrades that support fast charging.
- The pre-owned electric vehicle tax credit is available for individuals that purchase a pre-owned electric vehicle.
- Qualifying newly purchased EVs are eligible for a tax credit of $2500 – $7500
- Battery components are another portion of the tax credit that residents can benefit from, and this is usually up to $3750.
- The critical minerals tax credit is also up to $3750.
Let’s explore how you can get the most out of EV incentives and what the restrictions are.
Home Charger Incentive
Rebates are available for those with home charging stations for their electric vehicles. Companies like Duke Energy offer customers a $1,133 rebate to make electrical upgrades to support EV charging.
There are no qualifying criteria requirements for this incentive besides being a paying customer of Duke Energy. The maximum qualifying amount that residents are entitled to receive is $1,133.
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Pre-Owned Electric Vehicle Tax Credit
An EV tax credit of up to $4000 is available for residents in North Carolina that purchase a pre-owned electric vehicle.
To be eligible to receive this tax credit, the pre-owned EV must be no older than two years before the year of purchase and cannot have a purchase price higher than $25,000.
There is also a gross income cap on annual income for eligibility for the tax credit; this includes:
- $75,000 for single tax filers
- $112,500 for the head of house filers
- $150,000 for joint tax filers
Newly Purchased EV Credit
Newly purchased EVs can qualify for a federal tax credit from $2500 to $7,500, provided it meets the eligibility criteria.
📖 Read Next: How The EV Tax Credit Works
Eligibility criteria for this tax credit include the following:
- It must be a newly qualified EV that draws propulsion using a traction battery
- The traction battery in the EV has at least 5 kWh of capacity
- The EV has to use an external source of energy to charge the battery
- The EV has to meet emission vehicle standards and has a weight rating of up to 14,000 pounds
- The tax credit is also available to future EV owners with a written contract stating their intent to purchase the EV
Battery Components Tax Credit
The battery components tax credit is $3750 (minimum and maximum value tax credit).
To be eligible for this tax credit, residents that have sport utility vehicles or pick-up trucks, and need to have an EV that has a retail selling price above $80,000.
All other cars should have a suggested retail price below $55,000.
Threshold limits also apply for residents that want to claim this tax credit. These thresholds are as follows:
- $150,000 for single tax filers
- $225,000 for the head of house tax filers
- $300,000 for joint tax filers
Critical Minerals Tax Credit
The critical minerals tax credit amounts to $3750. The only eligibility criteria for this is that critical minerals extracted in the U.S. or a free trade agreement partner must increase according to a percentage schedule.
- For 2023 the minimum critical minerals percentage value is 40%
- For 2024 the minimum critical minerals percentage value is 40%
- For 2025 the minimum critical minerals percentage value is 40%
- For 2026 the minimum critical minerals percentage value is 40%
- For 2027 and beyond, the minimum critical minerals percentage value is 40%
How To Take Advantage Of North Carolina’s EV Incentives
To take advantage of the EV incentives and rebates, residents in North Carolina need to complete various forms and meet the eligibility requirements.
Most of this information is available on the IRS website, and those looking to claim can find more in-depth information on these incentives here.
Claiming For Tax Incentives For EVs In North Carolina
|Type of incentive||How To Claim|
|Home charger incentive||To install a level 2 charger and claim the rebate, residents need to apply for this through the Duke Energy website.|
|Pre-owned electric vehicle tax credit||To claim this credit, complete form 8936 with your tax return and include the vehicle’s VIN number.|
|Newly purchased EV credit||To claim the newly purchased EV credit, complete form 8936 with your tax return and include the vehicle’s VIN number.|
|Battery components tax credit||Completion of form 8936|
|Critical minerals tax credit||Completion of form 8936|
The Benefits Of North Carolina’s EV Incentives
There are numerous benefits to introducing EV incentives for North Carolina. With rebates and incentives, consumers get a tax credit and are supported by companies like Duke Energy to install electric vehicle supply equipment (EVSE) at home.
These companies offer to subsidize some of the costs and also save money by not having to purchase gas.
Rebates help offset the purchase price of EVs and encourage automotive manufacturers to offer more electric vehicles.
North Carolina is leading from the front in the southwest regarding EV and battery manufacturing investments, with a $3.3 billion investment in this industry and an impressive 9430 new job opportunities.
By moving from gas which is imported, to electric vehicles, North Carolina could potentially save $7.7 billion.
What Counties In North Carolina Do Not Require Emissions Testing?
A few counties no longer require emissions testing in North Carolina. These counties are Lee, Onslow, Rockingham, and a few others. Emissions testing only applies to Franklin, Guilford, Alamance, Iredell, Buncombe, Cabarrus, Union, Wake, Cumberland, Randolph, Rowan, Davidson, Durham, Forsyth, Lincoln, and Mecklenburg.
Does N.C. Require EV Inspection?
Battery electric vehicles in North Carolina must undergo a safety inspection but not undergo emission tests unless they are hybrid vehicles. However, safety inspections are necessary to keep a valid North Carolina vehicle registration.
North Carolina offers incentives that follow Federal guidance. Residents can also benefit from perks like full BEVs, and alternative fuel vehicles may use North Carolina HOV lanes regardless of occupancy.
The key points to remember from the article are:
- North Carolina offers tax credits for pre-owned and new electric vehicles
- Energy companies like Duke Energy offer home charging incentives
- Battery and critical minerals tax credits are also available to residents that purchase EVs
Next, I’d recommend reading these resources below to find out more about how you can benefit:
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