Washington State EV Incentives: Go Green, Save Green!
Washington offers several tax incentives for electric vehicles (EVs) to encourage their adoption as clean and energy-efficient transportation options. Here’s a quick snapshot of the major tax benefits for EVs in the state:
At A Glance:
1️⃣ Federal Tax Credit
2️⃣ Property Sales Tax Exemption
3️⃣ Tax Credit for Electric Vehicle Conversion
4️⃣ Tax Credit for Electric Vehicle Charging Equipment
5️⃣ Several Incentives For Businesses That Choose Electric Vehicles
Note that in Washington, these incentives are subject to change and may be altered or discontinued at any time.
This article will cover everything you need to know and understand about the types of incentives offered by the State of Washington regarding electric vehicles.
Overview Of Washington State’s Incentives for Electric Vehicles
If you buy an EV or equipment like a charger or level 2 EV charging station, you don’t have to pay any sales tax.
Plus, buying a new electric vehicle can potentially get a $1,500 tax credit. Additionally, if you drive an EV, you can drive solo in the carpool lane for free.
These incentives aim to get more people to switch to EVs, reduce our dependence on fossil fuels, and make the air we breathe cleaner.
Let’s discuss some of the more important incentives in more detail.
Federal EV Tax Credit
There is a federal special tax break for people who buy electric cars. This tax break is meant to make electric cars more affordable for buyers. The amount of the tax break depends on the size of the electric car’s battery.
The Tax credit applies to any clean vehicle, including FCEVs (Fuel Cell Electric Vehicles), PHEVs (Plug-in Hybrid Electric Vehicles), and some commercial vehicles and SUVs.
To get the tax break, you must buy a new or used electric car and have enough money owed in taxes to get the tax break.
The tax break might go away or become smaller in the future. To ensure you get the correct tax break, it’s best to talk to your tax consultant.
💡 Related Article: How The EV Tax Credit Can Benefit You
Washington State EV Rebates
Clark Public Utilities: provides a rebate of up to $2,000 to low-income residential customers who buy a second-hand electric vehicle (EV).
The EV’s purchase price should not exceed $20,000, and it must be registered in Clark County. To learn more about this program, visit the CPU Electric Vehicle Program website.
Sales Tax Exemption
In Washington, you don’t have to pay the state sales tax when you buy an electric vehicle (EV).
The deal applies to all-electric vehicles and plug-in hybrid vehicles that can drive at least 30 miles without gas. The state wants to encourage people to buy EVs to help the environment and reduce dependence on oil.
But don’t wait too long to start taking advantage of the tax break – it’s set to end in July 2025.
To qualify for the sales tax exemption on EVs in Washington, you need to purchase a qualifying vehicle that meets the following criteria:
- It must be a fully electric vehicle or a plug-in hybrid with a minimum all-electric range of 30 miles.
- The vehicle must be purchased in Washington.
- The vehicle must be used primarily in Washington.
- If you meet these criteria, you are eligible for the sales tax exemption
Electric Vehicle Conversion
In Washington, a tax incentive program is in place to encourage converting conventional gasoline-powered vehicles into electric vehicles (EVs). The program offers a sales tax exemption on the parts and labor required for the conversion process.
Individuals who convert their vehicles into EVs can save money on the taxes they would otherwise have to pay on the materials and services needed for the conversion.
Washington State Incentives For EV Charging Stations
Federal EV Charging Station Tax Credit
The Washington State Federal Alternative Fuel Infrastructure Tax Credit is a program to help people and businesses pay for alternative fuel stations, like electric vehicle charging stations, hydrogen fueling stations, and propane dispensers. To get the credit, the following must be true:
- You must install the station in Washington
- The station must meet state and federal safety standards
- The station must be installed by December 31, 2027
The tax credit covers up to 30% of the cost but is limited to $1000.
💡 Related Article: The Federal EV Charger Tax Credit: What You Need To Know
Washington State Incentives For EV Charging Stations
Snohomish Public Utility District: provides a $500 rebate to residential customers who buy and install Level 2 EV chargers. Please visit the Snohomish PUD EV website for more details on this program.
Tacoma Public Utility (TPU): provides a $400 bill credit rebate to residential customers who install a Level 2 electric vehicle (EV) charging station, a smart splitter, or a 240-volt outlet.
The reimbursement is limited to one per installation, with a maximum of $600. To learn more about this program, visit the TPU EV Charging website.
Clark Public Utilities (CPU): provides rebates to customers who buy and install Level 2 electric vehicle (EV) charging stations. The rebates are available in the following amounts:
|Eligible Customers||EV Charging Station Type||Rebate Amount|
|Residential||Non-ENERGY STAR certified; not Wi-Fi enabled||$100|
|Residential||Mobile connector for 240V outlet||$100|
|Residential, Commercial, and Industrial||ENERGY STAR certified; Wi-Fi enabled||$500|
🎓 Source: Alternative Fuels Data Center
How To Take Advantage Of Washington State’s EV Incentives
Here’s what you need to do to apply for these electric vehicle incentives:
- Pick an eligible vehicle: Make sure the EV you want qualifies for the incentives by checking the list of eligible vehicles.
- Contact the Washington State Department Of Transport.
- Contact your utility providers.
- You may also ask the EV dealer if they handle any rebate opportunities.
Unlike other states, it is important to contact the relevant organizations in Washington.
Finding online applications is challenging, so getting in touch is best.
The Benefits Of Washington State’s EV Incentives
There are multiple benefits that these incentives promote. Let’s take a deep dive:
- Save money: EVs are already more affordable to run than gas-guzzlers, and tax incentives can make buying one even more of a no-brainer by lowering the upfront cost.
- Clean air: EVs produce much less pollution than gas cars, so if more people drive them, our cities and communities can breathe more easily.
- Support local: Tax incentives for EVs can help boost the growth of the domestic EV manufacturing industry and support jobs.
- Job growth: With more demand for EVs, the government can help create new jobs in the auto and battery manufacturing industries.
- Good for the economy: Lowering the cost of EVs can stimulate demand and boost the economy.
In short, EV tax incentives make EVs more affordable, reduce dependence on oil, improve air quality, support local manufacturing, create jobs, and benefit the economy.
How Much Does It Cost To Register A Tesla In Washington State?
You can expect to pay approximately $250 to register a Tesla in Washington State.
How Much Does It Cost To Register An Electric Car In Washington State?
There is no difference between registering a Tesla or any other plug-in electric vehicle in the state of Washington. So, you can expect to pay around $250.
Washington State offers incentives for switching to electric vehicles, including tax credits, rebates, and exemptions.
However, eligibility requirements should be checked, and relevant organizations contacted. These incentives promote EV use, which can save money, reduce pollution, and create a sustainable future.
- Some states in the US have more incentives, and claiming them is more straightforward.
- Washington State offers two stand-out programs; the sales tax exemption and the charging station incentive.
Incentive Schemes By State:
Arizona’s EV Incentives
California’s EV Incentives & Rebates
Colorado’s EV Incentives
Florida’s EV Incentives & Rebates
Illinois’ EV Incentives & Rebates
Indiana’s EV Incentives
Michigan’s EV Incentives
Nevada’s EV Incentives & Rebates
New York’s EV Incentives
North Carolina’s EV Incentives
Ohio EV Incentives
Texas’ EV Incentives
Utah’s EV Incentives