Government incentives for plug-in electric vehicles
Encyclopedia
Government incentives for plug-in electric vehicles have been established by several national and local governments around the world as a financial incentive for consumers to purchase a plug-in electric vehicle
.
The amount of these incentives usually depends on battery size and the vehicle all-electric range
, and some countries extend the benefits to fuel cell vehicle
s, and electric vehicle conversion
s of hybrid electric vehicle
s and conventional internal combustion engine
vehicles.
established a rebate between (4 kWh battery) to (17 kWh or more) (~ to ), depending on battery size, for purchasing or leasing a new plug-in electric vehicle after July 1, 2010. The rebates will be available to the first 10,000 applicants who qualify.
The province will also introduce green-coloured licence plates
for exclusive use of plug-in hybrids and battery electric vehicle
s. These unique green vehicle
plates will allow PEV owners to travel in the province's carpool lanes until 2015 regardless of the number of passengers in the vehicle. Also, owners are eligible to use recharging stations at GO Transit
and other provincially-owned parking lots.
Quebec
will offer rebates of up to beginning on January 1, 2012, for the purchase of new plug-in electric vehicles equipped with a minimum of 4 kWh battery, and new hybrid electric vehicle
s are eligible for a rebate. All-electric vehicles with high-capacity battery packs will be eligible for the full C$8,000 rebate, and incentives are reduced for low-range electric cars and plug-in hybrids. Quebec's government earmarked for the program, and the maximum rebate amount is slowly reduced every year until a maximum of in 2015, but the rebates will continue until the fund runs out. There is also a ceiling for the maximum number of eligible
vehicles: 10,000 for all-electric vehicles and plug-in hybrids, and 5,000 for conventional hybrids.
The Government of British Columbia
announced the LiveSmart BC program which will start offering rebates of up to per eligible clean energy vehicle commencing on December 1, 2011. The incentives will be available until March 31, 2013 or until available funding is depleted, whichever comes first. Available funds are enough to provide incentives for approximately 1,370 vehicles. Battery electric vehicles, fuel cell vehicles and plug-in hybrids with battery capacity of 15.0 kWh and above are eligible for a incentive. Also effective December 1, 2011, rebates of up to per qualifying electric vehicle charging equipment will be available to B.C. residents who have purchased a clean energy vehicle.
government announced a trial program to provide incentives up to 60,000 yuan
(~ in June 2011) for private purchase of new battery electric vehicle
s and 50,000 yuan (~ in June 2011) for plug-in hybrids in five cities. The cities participating in the pilot program are Shanghai
, Shenzhen
, Hangzhou
, Hefei
and Changchun
. The subsidies are paid directly to automakers rather than consumers, but the government expects that vehicle prices will be reduced accordingly. The amount of the subsidy will be reduced once 50,000 units are sold.
In addition to the subsidy, the Chinese government is planning to introduce, beginning on January 1, 2012, an exemption from annual taxes for pure electric, fuel-cell, and plug-in hybrid vehicles. Hybrid vehicles will be eligible for a 50% reduction only.
, which includes all Western Europe
an countries plus the Czech Republic
and Romania
. Also 17 countries levy carbon dioxide related taxes on passenger cars as a disincentive. The incentives consist of tax reductions and exemptions, as well as of bonus payments for buyers of PEVs, hybrid vehicles
, and some alternative fuel vehicle
s.
s and other alternative fuel vehicle
s benefit from a fuel consumption tax that pays bonuses to passenger cars with low carbon dioxide output. Alternative fuel vehicles, including hybrids, qualify for as much as (around ) in annual bonuses. This bonus is valid from 1 July 2008 until 31 August 2012.
of a new electric vehicle, up to €9,000. Plug-in hybrids are not eligible. There is also available a tax deduction up to 40% for investments in external recharging stations publicly accessible, to a maximum of €250. The Wallonia regional government has an additional eco-bonus for cars registered before December 31, 2011.
79,000 (around ) and 180% if the price is above DKK79,000. The government also grants free parking in downtown Copenhagen
for EVS. This exemption does not apply to hybrid electric vehicles.
system, is granted in France
up to €5,000 for the purchase of new cars with CO2 emissions of 60 gr/km or less which benefits all-electric cars
and any plug-in hybrid with such low emissions. Vehicles emitting up to 125 gr/km or less, such as hybrids
and natural gas vehicle
s, are granted up to €2,000. The incentive cannot exceed 20% of the sales price including VAT
, increased with the cost of the battery if it is rented. The incentive is available for purchases through 2012.
offers a government grant of €5,000 for the purchase of a new electric cars. Also electric and hybrid vehicles benefit from a reduction of up to €2,500 of the registration tax. The latter benefit is valid until December 31, 2010.
the date of their first registration. Thereafter, EVs benefit from a 75% reduction of the tax rate applied to equivalent gasoline-powered vehicles.
.
vehicles including hybrid vehicles are also exempt from these taxes if they emit less than 95 g/km for diesel-powered vehicles, or less than 110 g/km for gasoline-powered vehicles.
Buyers will also have access to parking spaces in Amsterdam
reserved for battery electric vehicle
s, so they will avoid the current wait for a parking place in Amsterdam, which can reach up to 10 years in some parts of the city.
, all electric vehicles are exempt from all non-recurring vehicle fees, including sales tax
. Electric vehicles are also exempt from the annual road tax
, all public parking fees
, and toll payments
, as well as being able to use bus lane
s.
established a government subsidy of €5,000 for the first 5,000 new electric cars sold in the country. In addition, there is in place a €1,500 incentive if the consumer turn in a used car as part of the down payment for the new electric car. Electric cars are also exempt from the registration tax.
offers a government grant of up to 25% of the price (or max. €5,000) for the purchase of a new electric car. Furthermore, through the cash-for-clunkers program (scrappage program
), those who wish to purchase an electric car will receive six vouchers of over €5,000 (as of 2011) in return for their used car.
s including electric and hybrid vehicles. In Aragón
, Asturias
, Baleares
, Madrid
, Navarra, Valencia, Castilla-La Mancha, Murcia
, Castilla y León electric vehicles are eligible to a €6,000 tax incentive and hybrids to €2,000.
There is also an exemption from the annual circulation tax for the first five years from the date of their first registration that benefits owners of electric vehicles with an energy consumption of 37 kWh per 100 km or less, and hybrid vehicles with emissions of 120 g/km or less. In addition, for both electric and hybrid vehicles, the taxable value of the car for the purposes of calculating the benefit in kind of a company car under personal income tax is reduced by 40% compared with the corresponding or comparable gasoline or diesel-powered car. The reduction of the taxable value has a cap of per year.
The scheme was first announced in January 2009 by the Labour Government. The coalition government, led by David Cameron
, took office in May 2010 and confirmed their support of the grant on 28 July 2010. This confirmed that million would be available for the first 15 months of the scheme, with the 2011 Spending Review confirming funding for the programme for the lifetime of the Parliament of around million. The level of the consumer incentive will be reviewed at regular points, with the first in January 2012.
Vehicles eligible for the subsidy must meet the following criteria:
As of July 2011 the following cars are eligible for the grant: Mitsubishi i-MiEV, Peugeot iOn, Citroen C-ZERO
, Smart Fortwo electric drive, Nissan Leaf
, Tata Vista, Vauxhall Ampera, Chevrolet Volt
, Toyota Prius Plug-in Hybrid, and Renault Fluence ZE. Despite meeting all the technical criteria for the grant and being available before the grant program started, the Tesla Roadster
is not included on the government's plug-in electric car grant list of eligible vehicles. Tesla stated that the company applied for the scheme, but has not completed its application.. As of 30 September 2011, 786 claims have been made through the Plug-In Car Grant scheme, with Society of Motor Manufacturers and Traders (SMMT) data showing that 910 cars eligible for the Grant were registered over the same period.
Plugged-in Places
The Government is supporting the ‘Plugged-In Places’ programme to install vehicle recharging points across the UK. The scheme offers match-funding to consortia of businesses and public sector partners to support the installation of electric vehicle recharging infrastructure in lead places across the UK . There are eight Plugged-In Places: East of England; Greater Manchester; London; the Midlands; Milton Keynes; North East; Northern Ireland and Scotland. The Government also published Making the Connection: the Plug-In Vehicle Infrastructure Strategy in June 2011.
ese government introduced the first electric vehicle incentive program in 1996, and it was integrated in 1998 with the Clean Energy Vehicles Introduction Project, which provided subsidies and tax discounts for the purchase of electric
, natural gas
, methanol
and hybrid electric vehicle
s. The project provided a purchase subsidy of up to 50% the incremental costs of a clean energy vehicle as compared with the price of a conventional engine vehicle. This program was extended until 2003.
In May 2009 the Japanese Diet passed the "Green Vehicle Purchasing Promotion Measure" that went into effect on June 19, 2009, but retroactive to April 10, 2009. The program established tax deductions and exemptions for environmentally friendly
and fuel efficient vehicles, according to a set of stipulated environmental performance criteria, and the requirements are applied equally to both foreign and domestically produced vehicles. The program provides purchasing subsidies for two type of cases, consumers purchasing a new passenger car without trade-in (non-replacement program), and for those consumers buying a new car trading an used car registered 13 years ago or earlier (scrappage program
).
s, plug-in hybrids, hybrid electric vehicle
s, clean diesel and natural gas vehicle
s are exempted from both the acquisition tax and the tonnage tax. Other fuel efficient and low emission passenger cars, mini cars, and heavy-duty vehicles have a tax reduction that vary between 50 to 75% depending on the compliance of the new vehicle as compared to 2010 fuel efficiency standards and their improvement with respect to 2005 emissions standards. Acquisition taxes on used vehicles will be reduced by 1.6% to 2.7%, or between 150,000 yen (~US$1,600) and 300,000 yen (~US$3,200). Electric and fuel cell vehicles have a 2.7% reduction while plug-in hybrids have a 2.4% reduction.
These incentives are in effect from April 1, 2009 until March 31, 2012 for the acquisition tax which is paid once at the time of purchase. The tonnage tax reductions are in effect from April 1, 2009 until April 30, 2012 and the incentive is applicable once, at the time of the first mandatory inspection, three years after the vehicle purchase. As an example, the amount exempted for the purchase of a new next generation vehicle is 81,000 yen (~US$975) corresponding to the acquisition tax, and 22,500 yen (~US$271) for the tonnage tax, for a total of 103,500 yen (~US$1,246).
. Subsidies for purchasing trucks and buses meeting the stipulated fuel efficiency and emission criteria vary between 200,000 yen (~US$2,100) to 900,000 yen (~US$9,600).
Subsidies for purchases of new environmentally friendly vehicles in the case of owners scrapping a 13 year or older vehicle are 250,000 yen (~US$2,700) for the purchase of a standard or small car, and 125,000 yen (~US$1,300) for the purchase of a mini or kei vehicle. Subsidies for purchasing trucks and buses meeting the stipulated fuel efficiency and emission criteria vary between 400,000 yen (~US$4,300) to 1,800,000 yen (~US$19,000).
All incentives for new purchases with or without trading were applicable in Japan's fiscal year 2009, from April 1, 2009 through March 31, 2010.
(ARRA) also authorized federal tax credits for converted plug-ins, though the credit is lower than for new PEVs.
The new qualified plug-in electric vehicle credit phases out for a PEV manufacturer over the one-year period beginning with the second calendar quarter after the calendar quarter in which at least 200,000 qualifying vehicles from that manufacturer have been sold for use in the United States. For this purpose cumulative sales are accounted after December 31, 2009. Qualifying PEVs are eligible for 50% of the credit if acquired in the first two quarters of the phase-out period, and 25% of the credit if bought in the third or fourth quarter of the phase-out period. Both the Nissan Leaf
electric vehicle and the Chevrolet Volt
plug-in hybrid, launched in December 2010, are eligible for the maximum $7,500 tax credit. The Toyota Prius Plug-in Hybrid
, scheduled for 2012, is eligible for a $2,500 tax credit due to its smaller battery capacity of 5.2 kWh.
with a maximum credit of for each station. Businesses qualify for tax credits up to $50,000 for larger installations. These credits expired on December 31, 2010, but were extended for one year with a reduced tax credit equal to 30% with a maximum credit of up to for each station for individuals and up to for commercial buyers.
who reintroduced the "Charging America Forward Act." This bill was originally introduced in August 2010 but was not voted by the full Senate
. The bill will turn the tax credit into a rebate worth up to $7500 for plug-in electric vehicles and also provide businesses with a tax credit for purchasing medium or heavy duty plug-in hybrid trucks. The other initiative is from the Obama Administration that was included in the submitted FY 2012 Budget as a provision to transform the existing credit into a rebate that will be claimable by dealers and passed along to the consumers.
Another change to the law governing the plug-in tax credit was introduced by Senator Carl Levin
and Representative Sander Levin who are proposing to raise the existing cap on the number of plug-in vehicles eligible for the tax credit. The proposal raises that limit from the existing 200,000 PEVs per manufacturer to 500,000 units.
’s Air Resources Board (ARB), was established in order to promote the production and use of zero-emission vehicles (ZEVs), including plug-in electric and fuel cell vehicle
s. The program was created from Assembly Bill 118 that was signed by Governor Schwarzenegger
in October 2007. The funding will be provided on a first-come, first-served basis, and the project is expected to go through 2015.
Eligible vehicles include only new ARB-certified or approved zero-emission or plug-in hybrid electric vehicles. Among the eligible vehicles are neighborhood electric vehicle
s, battery electric
, plug-in hybrid electric, and fuel cell
vehicles including cars, trucks, medium- and heavy-duty commercial vehicles, and zero-emission motorcycles. Vehicles must be purchased or leased on or after March 15, 2010. Rebates of up to $5,000 per light-duty vehicle are available for individuals and business owners who purchase or lease new eligible vehicles. Certain zero-emission commercial vehicles are also eligible for rebates up to $20,000.
According to the Clean Vehicle Rebate Program a total of $1.4 million were distributed in 2010 for 213 plug-in vehicles that received the rebate, leaving $2.3 million available for 2011. In January 2011 the California Energy Commission
(CEC) allocated a $2 million contribution for the program, and considering the $5 million coming in second year funding, funds available for the rebates will amount to $9.3 million in 2011. The additional $2 million provided by CEC are reserved for rebates of vehicles capable of carrying four passengers and highway driving, providing enough money for 400 more buyers of such plug-in vehicles to benefit from the program. Once these funds were exhausted, the 2011-2012 program offered a lower rebate of up to $2,500. An additional $15 million was allocated for the 2011-2012 year program. Current availability of CVRP funds can be checked on the California Center for Sustainable Energy web site.
The 2011 Chevrolet Volt
was not submitted for application to the Clean Vehicle Rebate Project rebate and therefore is not eligible for the $5,000 rebate. The reason is that the Volt does not meet the 10-year 150 miles (241.4 km) battery warranty requirement for partial zero-emissions vehicle
s (Enhanced AT-PZEV). The Volt team explained that for the launch GM decided to go with a common national package which includes an 8-year 100000 miles (160,934 km) battery warranty. A configuration which qualifies for the CARB Enhanced AT-PZEV package is scheduled for the model year 2013, expected by mid 2012.
s and PHEVs, and other non-monetary incentives, as detailed in the following table:
Other states considering similar incentives are Connecticut
, Massachusetts
, New York
, and Texas
.
Plug-in electric vehicle
A plug-in electric vehicle is any motor vehicle that can be recharged from any external source of electricity, such as wall sockets, and the electricity stored in the rechargeable battery packs drives or contributes to drive the wheels...
.
The amount of these incentives usually depends on battery size and the vehicle all-electric range
All-electric range
All-electric range is the driving range of a vehicle using only power from its electric battery pack to traverse a given driving cycle. In the case of a battery electric vehicle, it means the total range per charge. For a plug-in hybrid , it means the range of the vehicle in charge-depleting mode...
, and some countries extend the benefits to fuel cell vehicle
Fuel cell vehicle
A Fuel cell vehicle or Fuel Cell Electric Vehicle is a type of hydrogen vehicle which uses a fuel cell to produce electricity, powering its on-board electric motor...
s, and electric vehicle conversion
Electric vehicle conversion
An electric vehicle conversion is the modification of a conventional internal combustion engine vehicle to electric propulsion, creating an all-electric or plug-in hybrid electric vehicle.-Elements of a conversion:...
s of hybrid electric vehicle
Hybrid electric vehicle
A hybrid electric vehicle is a type of hybrid vehicle and electric vehicle which combines a conventional internal combustion engine propulsion system with an electric propulsion system. The presence of the electric powertrain is intended to achieve either better fuel economy than a conventional...
s and conventional internal combustion engine
Internal combustion engine
The internal combustion engine is an engine in which the combustion of a fuel occurs with an oxidizer in a combustion chamber. In an internal combustion engine, the expansion of the high-temperature and high -pressure gases produced by combustion apply direct force to some component of the engine...
vehicles.
Canada
OntarioOntario
Ontario is a province of Canada, located in east-central Canada. It is Canada's most populous province and second largest in total area. It is home to the nation's most populous city, Toronto, and the nation's capital, Ottawa....
established a rebate between (4 kWh battery) to (17 kWh or more) (~ to ), depending on battery size, for purchasing or leasing a new plug-in electric vehicle after July 1, 2010. The rebates will be available to the first 10,000 applicants who qualify.
The province will also introduce green-coloured licence plates
Vehicle registration plates of Ontario
The province of Ontario first required its residents to register their vehicles and display licence plates in 1903. Along with regular series plates, the province also offers graphic plates and vanity plates with a maximum of 8 digits...
for exclusive use of plug-in hybrids and battery electric vehicle
Battery electric vehicle
A battery electric vehicle, or BEV, is a type of electric vehicle that uses chemical energy stored in rechargeable battery packs. BEVs use electric motors and motor controllers instead of, or in addition to, internal combustion engines for propulsion.A battery-only electric vehicle or...
s. These unique green vehicle
Green vehicle
A green vehicle or environmentally friendly vehicle is a road motor vehicle that produces less harmful impacts to the environment than comparable conventional internal combustion engine vehicles running on gasoline or diesel, or one that uses alternative fuels...
plates will allow PEV owners to travel in the province's carpool lanes until 2015 regardless of the number of passengers in the vehicle. Also, owners are eligible to use recharging stations at GO Transit
GO Transit
GO Transit is an inter-regional public transit system in Southern Ontario, Canada. It primarily serves the Greater Toronto and Hamilton Area conurbation, with operations extending to several communities beyond the GTHA proper in the Greater Golden Horseshoe...
and other provincially-owned parking lots.
Quebec
Quebec
Quebec or is a province in east-central Canada. It is the only Canadian province with a predominantly French-speaking population and the only one whose sole official language is French at the provincial level....
will offer rebates of up to beginning on January 1, 2012, for the purchase of new plug-in electric vehicles equipped with a minimum of 4 kWh battery, and new hybrid electric vehicle
Hybrid electric vehicle
A hybrid electric vehicle is a type of hybrid vehicle and electric vehicle which combines a conventional internal combustion engine propulsion system with an electric propulsion system. The presence of the electric powertrain is intended to achieve either better fuel economy than a conventional...
s are eligible for a rebate. All-electric vehicles with high-capacity battery packs will be eligible for the full C$8,000 rebate, and incentives are reduced for low-range electric cars and plug-in hybrids. Quebec's government earmarked for the program, and the maximum rebate amount is slowly reduced every year until a maximum of in 2015, but the rebates will continue until the fund runs out. There is also a ceiling for the maximum number of eligible
vehicles: 10,000 for all-electric vehicles and plug-in hybrids, and 5,000 for conventional hybrids.
The Government of British Columbia
British Columbia
British Columbia is the westernmost of Canada's provinces and is known for its natural beauty, as reflected in its Latin motto, Splendor sine occasu . Its name was chosen by Queen Victoria in 1858...
announced the LiveSmart BC program which will start offering rebates of up to per eligible clean energy vehicle commencing on December 1, 2011. The incentives will be available until March 31, 2013 or until available funding is depleted, whichever comes first. Available funds are enough to provide incentives for approximately 1,370 vehicles. Battery electric vehicles, fuel cell vehicles and plug-in hybrids with battery capacity of 15.0 kWh and above are eligible for a incentive. Also effective December 1, 2011, rebates of up to per qualifying electric vehicle charging equipment will be available to B.C. residents who have purchased a clean energy vehicle.
China
On June 1, 2010, the ChinesePeople's Republic of China
China , officially the People's Republic of China , is the most populous country in the world, with over 1.3 billion citizens. Located in East Asia, the country covers approximately 9.6 million square kilometres...
government announced a trial program to provide incentives up to 60,000 yuan
Chinese yuan
The yuan is the base unit of a number of modern Chinese currencies. The yuan is the primary unit of account of the Renminbi.A yuán is also known colloquially as a kuài . One yuán is divided into 10 jiǎo or colloquially máo...
(~ in June 2011) for private purchase of new battery electric vehicle
Battery electric vehicle
A battery electric vehicle, or BEV, is a type of electric vehicle that uses chemical energy stored in rechargeable battery packs. BEVs use electric motors and motor controllers instead of, or in addition to, internal combustion engines for propulsion.A battery-only electric vehicle or...
s and 50,000 yuan (~ in June 2011) for plug-in hybrids in five cities. The cities participating in the pilot program are Shanghai
Shanghai
Shanghai is the largest city by population in China and the largest city proper in the world. It is one of the four province-level municipalities in the People's Republic of China, with a total population of over 23 million as of 2010...
, Shenzhen
Shenzhen
Shenzhen is a major city in the south of Southern China's Guangdong Province, situated immediately north of Hong Kong. The area became China's first—and one of the most successful—Special Economic Zones...
, Hangzhou
Hangzhou
Hangzhou , formerly transliterated as Hangchow, is the capital and largest city of Zhejiang Province in Eastern China. Governed as a sub-provincial city, and as of 2010, its entire administrative division or prefecture had a registered population of 8.7 million people...
, Hefei
Hefei
Hefei is the capital and largest city of Anhui Province in Eastern China. A prefecture-level city, it is the political, economic, and cultural centre of Anhui...
and Changchun
Changchun
Changchun is the capital and largest city of Jilin province, located in the northeast of the People's Republic of China, in the center of the Songliao Plain. It is administered as a sub-provincial city with a population of 7,677,089 at the 2010 census under its jurisdiction, including counties and...
. The subsidies are paid directly to automakers rather than consumers, but the government expects that vehicle prices will be reduced accordingly. The amount of the subsidy will be reduced once 50,000 units are sold.
In addition to the subsidy, the Chinese government is planning to introduce, beginning on January 1, 2012, an exemption from annual taxes for pure electric, fuel-cell, and plug-in hybrid vehicles. Hybrid vehicles will be eligible for a 50% reduction only.
Europe
As of April 2011, 15 of the 27 European Union member states provide tax incentives for electrically chargeable vehiclesPlug-in electric vehicle
A plug-in electric vehicle is any motor vehicle that can be recharged from any external source of electricity, such as wall sockets, and the electricity stored in the rechargeable battery packs drives or contributes to drive the wheels...
, which includes all Western Europe
Western Europe
Western Europe is a loose term for the collection of countries in the western most region of the European continents, though this definition is context-dependent and carries cultural and political connotations. One definition describes Western Europe as a geographic entity—the region lying in the...
an countries plus the Czech Republic
Czech Republic
The Czech Republic is a landlocked country in Central Europe. The country is bordered by Poland to the northeast, Slovakia to the east, Austria to the south, and Germany to the west and northwest....
and Romania
Romania
Romania is a country located at the crossroads of Central and Southeastern Europe, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea...
. Also 17 countries levy carbon dioxide related taxes on passenger cars as a disincentive. The incentives consist of tax reductions and exemptions, as well as of bonus payments for buyers of PEVs, hybrid vehicles
Hybrid electric vehicle
A hybrid electric vehicle is a type of hybrid vehicle and electric vehicle which combines a conventional internal combustion engine propulsion system with an electric propulsion system. The presence of the electric powertrain is intended to achieve either better fuel economy than a conventional...
, and some alternative fuel vehicle
Alternative fuel vehicle
An alternative fuel vehicle is a vehicle that runs on a fuel other than "traditional" petroleum fuels ; and also refers to any technology of powering an engine that does not involve solely petroleum...
s.
Austria
Electric vehicles are exempt from the fuel consumption tax, levied upon the first registration, and from the monthly vehicle tax. In addition to tax breaks, hybrid vehicleHybrid electric vehicle
A hybrid electric vehicle is a type of hybrid vehicle and electric vehicle which combines a conventional internal combustion engine propulsion system with an electric propulsion system. The presence of the electric powertrain is intended to achieve either better fuel economy than a conventional...
s and other alternative fuel vehicle
Alternative fuel vehicle
An alternative fuel vehicle is a vehicle that runs on a fuel other than "traditional" petroleum fuels ; and also refers to any technology of powering an engine that does not involve solely petroleum...
s benefit from a fuel consumption tax that pays bonuses to passenger cars with low carbon dioxide output. Alternative fuel vehicles, including hybrids, qualify for as much as (around ) in annual bonuses. This bonus is valid from 1 July 2008 until 31 August 2012.
Belgium
The Belgian government established a personal income tax deduction of 30% of the purchase price including VATVat
Vat or VAT may refer to:* A type of container such as a barrel, storage tank, or tub, often constructed of welded sheet stainless steel, and used for holding, storing, and processing liquids such as milk, wine, and beer...
of a new electric vehicle, up to €9,000. Plug-in hybrids are not eligible. There is also available a tax deduction up to 40% for investments in external recharging stations publicly accessible, to a maximum of €250. The Wallonia regional government has an additional eco-bonus for cars registered before December 31, 2011.
Czech Republic
Electric, hybrid and other alternative fuel vehicles used for business purposes are exempt from the road tax.Denmark
Electric vehicles weighing under 2,000 kg are exempt from the new car registration tax since 1985, but available models were so limited that by 2009 only 497 EVs are registered in the entire country. The registration tax in Denmark is based on the vehicle's purchase price of the vehicle, and is set at 105% if the vehicle price is up to DKKDanish krone
The krone is the official currency of the Kingdom of Denmark consisting of Denmark, the Faroe Islands and Greenland. It is subdivided into 100 øre...
79,000 (around ) and 180% if the price is above DKK79,000. The government also grants free parking in downtown Copenhagen
Copenhagen
Copenhagen is the capital and largest city of Denmark, with an urban population of 1,199,224 and a metropolitan population of 1,930,260 . With the completion of the transnational Øresund Bridge in 2000, Copenhagen has become the centre of the increasingly integrating Øresund Region...
for EVS. This exemption does not apply to hybrid electric vehicles.
France
A premium, under a Bonus-MalusBonus-Malus
The term bonus-malus is used for a number of business arrangements which alternately reward or penalize .It is used, for example, in the call center and insurance industries.- Call centers :...
system, is granted in France
France
The French Republic , The French Republic , The French Republic , (commonly known as France , is a unitary semi-presidential republic in Western Europe with several overseas territories and islands located on other continents and in the Indian, Pacific, and Atlantic oceans. Metropolitan France...
up to €5,000 for the purchase of new cars with CO2 emissions of 60 gr/km or less which benefits all-electric cars
Battery electric vehicle
A battery electric vehicle, or BEV, is a type of electric vehicle that uses chemical energy stored in rechargeable battery packs. BEVs use electric motors and motor controllers instead of, or in addition to, internal combustion engines for propulsion.A battery-only electric vehicle or...
and any plug-in hybrid with such low emissions. Vehicles emitting up to 125 gr/km or less, such as hybrids
Hybrid electric vehicle
A hybrid electric vehicle is a type of hybrid vehicle and electric vehicle which combines a conventional internal combustion engine propulsion system with an electric propulsion system. The presence of the electric powertrain is intended to achieve either better fuel economy than a conventional...
and natural gas vehicle
Natural gas vehicle
thumb|right|200px|2009 [[Honda Civic GX]] hooked up to Phill refueling system.A natural gas vehicle or NGV is an alternative fuel vehicle that uses compressed natural gas or liquefied natural gas as a clean alternative to other fossil fuels...
s, are granted up to €2,000. The incentive cannot exceed 20% of the sales price including VAT
Vat
Vat or VAT may refer to:* A type of container such as a barrel, storage tank, or tub, often constructed of welded sheet stainless steel, and used for holding, storing, and processing liquids such as milk, wine, and beer...
, increased with the cost of the battery if it is rented. The incentive is available for purchases through 2012.
Germany
Electric vehicles and plug-ins are exempt from the annual circulation tax for a period of five years from the date of their first registration. In May 2010 the German government announced that it will not provide subsidies to the sales of electric cars but instead it will only fund research in the area of electric mobility.Ireland
IrelandIreland
Ireland is an island to the northwest of continental Europe. It is the third-largest island in Europe and the twentieth-largest island on Earth...
offers a government grant of €5,000 for the purchase of a new electric cars. Also electric and hybrid vehicles benefit from a reduction of up to €2,500 of the registration tax. The latter benefit is valid until December 31, 2010.
Italy
Electric vehicles are exempt from the annual circulation tax or ownership tax for five years fromthe date of their first registration. Thereafter, EVs benefit from a 75% reduction of the tax rate applied to equivalent gasoline-powered vehicles.
Luxembourg
Buyers of electric vehicles and other vehicles emitting 60 g/km or less of carbon dioxide are eligible to receive a premium of (around ) until 31 December 2011. In order to qualify for the rebate, the owner must have concluded an agreement to buy electricity from renewable energyRenewable energy
Renewable energy is energy which comes from natural resources such as sunlight, wind, rain, tides, and geothermal heat, which are renewable . About 16% of global final energy consumption comes from renewables, with 10% coming from traditional biomass, which is mainly used for heating, and 3.4% from...
.
Netherlands
There are no direct purchase subsidies for electric vehicles, but other existing incentives include total exemption of the registration fee and road taxes, which result in savings of approximately for private car owners over four years and for corporate owners over five years. Othervehicles including hybrid vehicles are also exempt from these taxes if they emit less than 95 g/km for diesel-powered vehicles, or less than 110 g/km for gasoline-powered vehicles.
Buyers will also have access to parking spaces in Amsterdam
Amsterdam
Amsterdam is the largest city and the capital of the Netherlands. The current position of Amsterdam as capital city of the Kingdom of the Netherlands is governed by the constitution of August 24, 1815 and its successors. Amsterdam has a population of 783,364 within city limits, an urban population...
reserved for battery electric vehicle
Battery electric vehicle
A battery electric vehicle, or BEV, is a type of electric vehicle that uses chemical energy stored in rechargeable battery packs. BEVs use electric motors and motor controllers instead of, or in addition to, internal combustion engines for propulsion.A battery-only electric vehicle or...
s, so they will avoid the current wait for a parking place in Amsterdam, which can reach up to 10 years in some parts of the city.
Norway
In NorwayNorway
Norway , officially the Kingdom of Norway, is a Nordic unitary constitutional monarchy whose territory comprises the western portion of the Scandinavian Peninsula, Jan Mayen, and the Arctic archipelago of Svalbard and Bouvet Island. Norway has a total area of and a population of about 4.9 million...
, all electric vehicles are exempt from all non-recurring vehicle fees, including sales tax
Sales tax
A sales tax is a tax, usually paid by the consumer at the point of purchase, itemized separately from the base price, for certain goods and services. The tax amount is usually calculated by applying a percentage rate to the taxable price of a sale....
. Electric vehicles are also exempt from the annual road tax
Road tax
Road tax, known by various names around the world, is a tax which has to be paid on a motor vehicle before using it on a public road.-Australia:...
, all public parking fees
Free Parking
Free Parking is a Parker Brothers card game inspired by the "Free Parking" space of the Monopoly board game.The game is played by two to four players, and game play focuses around using time on a parking meter to gain points; the first to 200 points wins. Each player has their own parking meter and...
, and toll payments
Toll road
A toll road is a privately or publicly built road for which a driver pays a toll for use. Structures for which tolls are charged include toll bridges and toll tunnels. Non-toll roads are financed using other sources of revenue, most typically fuel tax or general tax funds...
, as well as being able to use bus lane
Bus lane
A bus lane or bus only lane is a lane restricted to buses, and generally used to speed up public transport that would be otherwise held up by traffic congestion...
s.
Portugal
PortugalPortugal
Portugal , officially the Portuguese Republic is a country situated in southwestern Europe on the Iberian Peninsula. Portugal is the westernmost country of Europe, and is bordered by the Atlantic Ocean to the West and South and by Spain to the North and East. The Atlantic archipelagos of the...
established a government subsidy of €5,000 for the first 5,000 new electric cars sold in the country. In addition, there is in place a €1,500 incentive if the consumer turn in a used car as part of the down payment for the new electric car. Electric cars are also exempt from the registration tax.
Romania
RomaniaRomania
Romania is a country located at the crossroads of Central and Southeastern Europe, on the Lower Danube, within and outside the Carpathian arch, bordering on the Black Sea...
offers a government grant of up to 25% of the price (or max. €5,000) for the purchase of a new electric car. Furthermore, through the cash-for-clunkers program (scrappage program
Scrappage program
A scrappage program is a government budget program to promote the replacement of old vehicles with modern vehicles. Scrappage programs generally have the dual aim of stimulating the automobile industry and removing inefficient, high emissions vehicles from the road...
), those who wish to purchase an electric car will receive six vouchers of over €5,000 (as of 2011) in return for their used car.
Spain
In May 2011 the Spanish government approved a fund for year 2011 to promote electric vehicles. The incentives include direct subsidies for the acquisition of new electric cars for up to 25% of the purchase price, before tax, to a maximum of €6,000 per vehicle (US$8,600), and 25% of the gross purchase price of other electric vehicles such as buses and vans, with a maximum of €15,000 or €30,000, depending on the range and type of vehicle. Several regional government grant incentives for the purchase of alternative fuel vehicleAlternative fuel vehicle
An alternative fuel vehicle is a vehicle that runs on a fuel other than "traditional" petroleum fuels ; and also refers to any technology of powering an engine that does not involve solely petroleum...
s including electric and hybrid vehicles. In Aragón
Aragon
Aragon is a modern autonomous community in Spain, coextensive with the medieval Kingdom of Aragon. Located in northeastern Spain, the Aragonese autonomous community comprises three provinces : Huesca, Zaragoza, and Teruel. Its capital is Zaragoza...
, Asturias
Asturias
The Principality of Asturias is an autonomous community of the Kingdom of Spain, coextensive with the former Kingdom of Asturias in the Middle Ages...
, Baleares
Balearic Islands
The Balearic Islands are an archipelago of Spain in the western Mediterranean Sea, near the eastern coast of the Iberian Peninsula.The four largest islands are: Majorca, Minorca, Ibiza and Formentera. The archipelago forms an autonomous community and a province of Spain with Palma as the capital...
, Madrid
Madrid
Madrid is the capital and largest city of Spain. The population of the city is roughly 3.3 million and the entire population of the Madrid metropolitan area is calculated to be 6.271 million. It is the third largest city in the European Union, after London and Berlin, and its metropolitan...
, Navarra, Valencia, Castilla-La Mancha, Murcia
Murcia
-History:It is widely believed that Murcia's name is derived from the Latin words of Myrtea or Murtea, meaning land of Myrtle , although it may also be a derivation of the word Murtia, which would mean Murtius Village...
, Castilla y León electric vehicles are eligible to a €6,000 tax incentive and hybrids to €2,000.
Sweden
In September 2011 the Swedish government approved a program, effective starting in January 2012, that will provide subsidies for the purchase of electric cars and other "super green cars" with ultra-low carbon emissions (below 50 grams of carbon dioxide per km).There is also an exemption from the annual circulation tax for the first five years from the date of their first registration that benefits owners of electric vehicles with an energy consumption of 37 kWh per 100 km or less, and hybrid vehicles with emissions of 120 g/km or less. In addition, for both electric and hybrid vehicles, the taxable value of the car for the purposes of calculating the benefit in kind of a company car under personal income tax is reduced by 40% compared with the corresponding or comparable gasoline or diesel-powered car. The reduction of the taxable value has a cap of per year.
United Kingdom
The Plug-in Car Grant started on 1 January 2011 and is available across the U.K. The program reduces the up-front cost of eligible cars by providing a 25% grant towards the cost of new plug-in cars capped at . Both private and business fleet buyers are eligible for this grant which is received at the point of purchase. The subsidy programme is managed in a similar way to the grant made as part of the 2009 Car Scrappage Scheme, allowing consumers to buy an eligible car discounted at the point of purchase with the subsidy claimed back by the manufacturer afterwards.The scheme was first announced in January 2009 by the Labour Government. The coalition government, led by David Cameron
David Cameron
David William Donald Cameron is the current Prime Minister of the United Kingdom, First Lord of the Treasury, Minister for the Civil Service and Leader of the Conservative Party. Cameron represents Witney as its Member of Parliament ....
, took office in May 2010 and confirmed their support of the grant on 28 July 2010. This confirmed that million would be available for the first 15 months of the scheme, with the 2011 Spending Review confirming funding for the programme for the lifetime of the Parliament of around million. The level of the consumer incentive will be reviewed at regular points, with the first in January 2012.
Vehicles eligible for the subsidy must meet the following criteria:
- Vehicle type: Only ultra-low emission carsUltra Low Emission VehicleAn ultra-low-emission vehicle is a motor vehicle that emits extremely low levels of motor vehicle emissions compared to other vehicles...
are eligible (vehicle category M1). Motorbikes, quadricycles and vans are not covered.
- Carbon dioxide exhaust emissions: Vehicles must emit equal or less than 75 grams of carbon dioxide (CO2) per kilometre driven.
- Range: Electric vehicleElectric vehicleAn electric vehicle , also referred to as an electric drive vehicle, uses one or more electric motors or traction motors for propulsion...
s (EVs) must be able to travel a minimum of 70 miles (112.7 km) between charges. Plug-in hybrid electric vehiclePlug-in hybrid electric vehicleA plug-in hybrid electric vehicle , plug-in hybrid vehicle , or plug-in hybrid is a hybrid vehicle which utilizes rechargeable batteries, or another energy storage device, that can be restored to full charge by connecting a plug to an external electric power source...
s (PHEVs) must have a minimum all-electric rangeAll-electric rangeAll-electric range is the driving range of a vehicle using only power from its electric battery pack to traverse a given driving cycle. In the case of a battery electric vehicle, it means the total range per charge. For a plug-in hybrid , it means the range of the vehicle in charge-depleting mode...
of 10 miles (16.1 km).
- Minimum top speed: Vehicles must be able to reach a speed of 60 miles per hour (26.8 m/s) or more.
- Warranty: Vehicles must have a 3-year or 60000 miles (96,560.4 km) vehicle warranty (guarantee) and a 3-year battery and electric drive train warranty, with the option of extending the battery warranty for an extra 2 years(‘drive train’ means the parts that send power from the engine to the wheels. These include the clutch, transmission (gear box), drive shafts, U-joints and differential).
- Battery performance: Vehicles must have either a minimum 5-year warranty on the battery and electric drive train as standard , or extra evidence of battery performance to show reasonable performance after 3 years of use
- Electrical safety: Vehicles must comply with certain regulations (UN-ECE Reg 100.00) that show that they are electrically safe.
- Crash safety: To make sure cars will be safe in a crash, they must either have: EC whole vehicle type approval (EC WVTA, not small series) or evidence that the car has appropriate levels of safety as judged by international standards
As of July 2011 the following cars are eligible for the grant: Mitsubishi i-MiEV, Peugeot iOn, Citroen C-ZERO
Citroën C-ZERO
The Citroën C-Zero is a electric supermini/city car produced by Citroën. It was developed in collaboration with Mitsubishi Motors Corporation. Its sister will be marketed by Peugeot as the Peugeot iOn...
, Smart Fortwo electric drive, Nissan Leaf
Nissan Leaf
Nissan introduced its first battery electric vehicle, the Nissan Altra at the Los Angeles International Auto Show on 29 December 1997. The Altra EV was produced between 1998 and 2002, only about 200 vehicles were ever produced, and it was mainly used as a fleet vehicle for companies such as...
, Tata Vista, Vauxhall Ampera, Chevrolet Volt
Chevrolet Volt
The Chevrolet Volt is a plug-in hybrid electric vehicle manufactured by General Motors. The Volt has been on sale in the U.S. market since mid-December 2010, and is the most fuel-efficient compact car sold in the United States, as rated by the United States Environmental Protection Agency...
, Toyota Prius Plug-in Hybrid, and Renault Fluence ZE. Despite meeting all the technical criteria for the grant and being available before the grant program started, the Tesla Roadster
Tesla Roadster
The Tesla Roadster is a battery electric vehicle sports car produced by the electric car firm Tesla Motors in California. The Roadster was the first highway-capable all-electric vehicle in serial production available in the United States. Since 2008 Tesla has sold 2,024 Roadsters in 30 countries...
is not included on the government's plug-in electric car grant list of eligible vehicles. Tesla stated that the company applied for the scheme, but has not completed its application.. As of 30 September 2011, 786 claims have been made through the Plug-In Car Grant scheme, with Society of Motor Manufacturers and Traders (SMMT) data showing that 910 cars eligible for the Grant were registered over the same period.
Plugged-in Places
The Government is supporting the ‘Plugged-In Places’ programme to install vehicle recharging points across the UK. The scheme offers match-funding to consortia of businesses and public sector partners to support the installation of electric vehicle recharging infrastructure in lead places across the UK . There are eight Plugged-In Places: East of England; Greater Manchester; London; the Midlands; Milton Keynes; North East; Northern Ireland and Scotland. The Government also published Making the Connection: the Plug-In Vehicle Infrastructure Strategy in June 2011.
Japan
The JapanJapan
Japan is an island nation in East Asia. Located in the Pacific Ocean, it lies to the east of the Sea of Japan, China, North Korea, South Korea and Russia, stretching from the Sea of Okhotsk in the north to the East China Sea and Taiwan in the south...
ese government introduced the first electric vehicle incentive program in 1996, and it was integrated in 1998 with the Clean Energy Vehicles Introduction Project, which provided subsidies and tax discounts for the purchase of electric
Electric vehicle
An electric vehicle , also referred to as an electric drive vehicle, uses one or more electric motors or traction motors for propulsion...
, natural gas
Natural gas vehicle
thumb|right|200px|2009 [[Honda Civic GX]] hooked up to Phill refueling system.A natural gas vehicle or NGV is an alternative fuel vehicle that uses compressed natural gas or liquefied natural gas as a clean alternative to other fossil fuels...
, methanol
Methanol fuel
Methanol is an alternative fuel for internal combustion and other engines, either in combination with gasoline or directly . It is used in racing cars and in China...
and hybrid electric vehicle
Hybrid electric vehicle
A hybrid electric vehicle is a type of hybrid vehicle and electric vehicle which combines a conventional internal combustion engine propulsion system with an electric propulsion system. The presence of the electric powertrain is intended to achieve either better fuel economy than a conventional...
s. The project provided a purchase subsidy of up to 50% the incremental costs of a clean energy vehicle as compared with the price of a conventional engine vehicle. This program was extended until 2003.
In May 2009 the Japanese Diet passed the "Green Vehicle Purchasing Promotion Measure" that went into effect on June 19, 2009, but retroactive to April 10, 2009. The program established tax deductions and exemptions for environmentally friendly
Green vehicles
Green vehicles may refer to:* Green Vehicles Inc., maker of the Triac * Green vehicle...
and fuel efficient vehicles, according to a set of stipulated environmental performance criteria, and the requirements are applied equally to both foreign and domestically produced vehicles. The program provides purchasing subsidies for two type of cases, consumers purchasing a new passenger car without trade-in (non-replacement program), and for those consumers buying a new car trading an used car registered 13 years ago or earlier (scrappage program
Scrappage program
A scrappage program is a government budget program to promote the replacement of old vehicles with modern vehicles. Scrappage programs generally have the dual aim of stimulating the automobile industry and removing inefficient, high emissions vehicles from the road...
).
Tonnage and acquisition tax reductions
New next generation vehicles, including electric and fuel cell vehicleFuel cell vehicle
A Fuel cell vehicle or Fuel Cell Electric Vehicle is a type of hydrogen vehicle which uses a fuel cell to produce electricity, powering its on-board electric motor...
s, plug-in hybrids, hybrid electric vehicle
Hybrid electric vehicle
A hybrid electric vehicle is a type of hybrid vehicle and electric vehicle which combines a conventional internal combustion engine propulsion system with an electric propulsion system. The presence of the electric powertrain is intended to achieve either better fuel economy than a conventional...
s, clean diesel and natural gas vehicle
Natural gas vehicle
thumb|right|200px|2009 [[Honda Civic GX]] hooked up to Phill refueling system.A natural gas vehicle or NGV is an alternative fuel vehicle that uses compressed natural gas or liquefied natural gas as a clean alternative to other fossil fuels...
s are exempted from both the acquisition tax and the tonnage tax. Other fuel efficient and low emission passenger cars, mini cars, and heavy-duty vehicles have a tax reduction that vary between 50 to 75% depending on the compliance of the new vehicle as compared to 2010 fuel efficiency standards and their improvement with respect to 2005 emissions standards. Acquisition taxes on used vehicles will be reduced by 1.6% to 2.7%, or between 150,000 yen (~US$1,600) and 300,000 yen (~US$3,200). Electric and fuel cell vehicles have a 2.7% reduction while plug-in hybrids have a 2.4% reduction.
These incentives are in effect from April 1, 2009 until March 31, 2012 for the acquisition tax which is paid once at the time of purchase. The tonnage tax reductions are in effect from April 1, 2009 until April 30, 2012 and the incentive is applicable once, at the time of the first mandatory inspection, three years after the vehicle purchase. As an example, the amount exempted for the purchase of a new next generation vehicle is 81,000 yen (~US$975) corresponding to the acquisition tax, and 22,500 yen (~US$271) for the tonnage tax, for a total of 103,500 yen (~US$1,246).
Automobile tax reductions
Consumers purchasing new next generation electric vehicles, including fuel cell, benefit of a 50% reduction of the annual automobile tax, and natural gas vehicles benefit only if their certified emissions are 75% down from 2005 standards. This incentives is in effect from April 1, 2009 until March 31, 2010, applicable only once.Incentives for purchasing new green vehicles
Subsidies for purchases of new environmentally friendly vehicles without scrapping a used car are 100,000 yen (~US$1,100) for the purchase of a standard or small car, and 50,000 yen (~US$550) for the purchase of a mini or kei vehicleKei car
Kei cars, K-cars, or , are a Japanese category of small vehicles, including passenger cars, vans, and pickup trucks. They are designed to comply with Japanese government tax and insurance regulations, and in most rural areas are exempted from the requirement to certify that adequate parking is...
. Subsidies for purchasing trucks and buses meeting the stipulated fuel efficiency and emission criteria vary between 200,000 yen (~US$2,100) to 900,000 yen (~US$9,600).
Subsidies for purchases of new environmentally friendly vehicles in the case of owners scrapping a 13 year or older vehicle are 250,000 yen (~US$2,700) for the purchase of a standard or small car, and 125,000 yen (~US$1,300) for the purchase of a mini or kei vehicle. Subsidies for purchasing trucks and buses meeting the stipulated fuel efficiency and emission criteria vary between 400,000 yen (~US$4,300) to 1,800,000 yen (~US$19,000).
All incentives for new purchases with or without trading were applicable in Japan's fiscal year 2009, from April 1, 2009 through March 31, 2010.
Federal government
First the Energy Improvement and Extension Act of 2008, and later the American Clean Energy and Security Act of 2009 (ACES) granted tax credits for new qualified plug-in electric drive motor vehicles. The American Recovery and Reinvestment Act of 2009American Recovery and Reinvestment Act of 2009
The American Recovery and Reinvestment Act of 2009, abbreviated ARRA and commonly referred to as the Stimulus or The Recovery Act, is an economic stimulus package enacted by the 111th United States Congress in February 2009 and signed into law on February 17, 2009, by President Barack Obama.To...
(ARRA) also authorized federal tax credits for converted plug-ins, though the credit is lower than for new PEVs.
New plug-in electric vehicles
As defined by the 2009 ACES Act, a PEV is a vehicle which draws propulsion energy from a traction battery with at least 5 kwh of capacity and uses an offboard source of energy to recharge such battery. The tax credit for new plug-in electric vehicles is worth $2,500 plus $417 for each kilowatt-hour of battery capacity over 5 kwh, and the portion of the credit determined by battery capacity cannot exceed $5,000. Therefore, the total amount of the credit allowed for a new PEV is $7,500.The new qualified plug-in electric vehicle credit phases out for a PEV manufacturer over the one-year period beginning with the second calendar quarter after the calendar quarter in which at least 200,000 qualifying vehicles from that manufacturer have been sold for use in the United States. For this purpose cumulative sales are accounted after December 31, 2009. Qualifying PEVs are eligible for 50% of the credit if acquired in the first two quarters of the phase-out period, and 25% of the credit if bought in the third or fourth quarter of the phase-out period. Both the Nissan Leaf
Nissan Leaf
Nissan introduced its first battery electric vehicle, the Nissan Altra at the Los Angeles International Auto Show on 29 December 1997. The Altra EV was produced between 1998 and 2002, only about 200 vehicles were ever produced, and it was mainly used as a fleet vehicle for companies such as...
electric vehicle and the Chevrolet Volt
Chevrolet Volt
The Chevrolet Volt is a plug-in hybrid electric vehicle manufactured by General Motors. The Volt has been on sale in the U.S. market since mid-December 2010, and is the most fuel-efficient compact car sold in the United States, as rated by the United States Environmental Protection Agency...
plug-in hybrid, launched in December 2010, are eligible for the maximum $7,500 tax credit. The Toyota Prius Plug-in Hybrid
Toyota Prius Plug-in Hybrid
The Toyota Prius Plug-in Hybrid is a mid-size plug-in hybrid electric vehicle to be produced by Toyota Motor Corporation and scheduled to be released to the market beginning in January 2012...
, scheduled for 2012, is eligible for a $2,500 tax credit due to its smaller battery capacity of 5.2 kWh.
Plug-in conversion kits
The 2009 ARRA provided a tax credit for plug-in electric drive conversion kits. The credit is equal to 10% of the cost of converting a vehicle to a qualified plug-in electric vehicle and in service after February 17, 2009. The maximum amount of the credit is $4,000. The credit does not apply to conversions made after December 31, 2011.Charging Equipment
There is a federal tax credit equal to 50% of the cost to buy and install a home-based charging stationCharging station
An electric vehicle charging station, also called EV charging station, electric recharging point, charging point and EVSE , is an element in an infrastructure that supplies electric energy for the recharging of electric vehicles, plug-in hybrid electric-gasoline vehicles) or semi-static and mobile...
with a maximum credit of for each station. Businesses qualify for tax credits up to $50,000 for larger installations. These credits expired on December 31, 2010, but were extended for one year with a reduced tax credit equal to 30% with a maximum credit of up to for each station for individuals and up to for commercial buyers.
New proposals
Two separate initiatives are being pursued in 2011 to transform the tax credit into an instant cash rebate. The objective of both initiatives is to make new qualifying plug-in electric cars more accessible to buyers by making the incentive more effective. The rebate will be available at the point of sale allowing consumers to avoid a wait of up to a year to apply the tax credit against income tax returns. The first initiative is from Senator Debbie StabenowDebbie Stabenow
Deborah Ann Greer "Debbie" Stabenow is the junior United States Senator from Michigan and a member of the Democratic Party. Before her election to the U.S. Senate, she was a member of the United States House of Representatives, representing Michigan's 8th congressional district from 1997 to 2001...
who reintroduced the "Charging America Forward Act." This bill was originally introduced in August 2010 but was not voted by the full Senate
United States Senate
The United States Senate is the upper house of the bicameral legislature of the United States, and together with the United States House of Representatives comprises the United States Congress. The composition and powers of the Senate are established in Article One of the U.S. Constitution. Each...
. The bill will turn the tax credit into a rebate worth up to $7500 for plug-in electric vehicles and also provide businesses with a tax credit for purchasing medium or heavy duty plug-in hybrid trucks. The other initiative is from the Obama Administration that was included in the submitted FY 2012 Budget as a provision to transform the existing credit into a rebate that will be claimable by dealers and passed along to the consumers.
Another change to the law governing the plug-in tax credit was introduced by Senator Carl Levin
Carl Levin
Carl Milton Levin is a Jewish-American United States Senator from Michigan, serving since 1979. He is the Chairman of the Senate Committee on Armed Services. He is a member of the Democratic Party....
and Representative Sander Levin who are proposing to raise the existing cap on the number of plug-in vehicles eligible for the tax credit. The proposal raises that limit from the existing 200,000 PEVs per manufacturer to 500,000 units.
California
The Clean Vehicle Rebate Project (CVRP), initially funded with a total of $4.1 million by the California Environmental Protection AgencyCalifornia Environmental Protection Agency
The California Environmental Protection Agency is a state cabinet-level agency within the government of California. Cal/EPA is composed of six departments, boards and offices responsible for environmental research, regulating and administering the state's environmental protection programs, and...
’s Air Resources Board (ARB), was established in order to promote the production and use of zero-emission vehicles (ZEVs), including plug-in electric and fuel cell vehicle
Fuel cell vehicle
A Fuel cell vehicle or Fuel Cell Electric Vehicle is a type of hydrogen vehicle which uses a fuel cell to produce electricity, powering its on-board electric motor...
s. The program was created from Assembly Bill 118 that was signed by Governor Schwarzenegger
Arnold Schwarzenegger
Arnold Alois Schwarzenegger is an Austrian-American former professional bodybuilder, actor, businessman, investor, and politician. Schwarzenegger served as the 38th Governor of California from 2003 until 2011....
in October 2007. The funding will be provided on a first-come, first-served basis, and the project is expected to go through 2015.
Eligible vehicles include only new ARB-certified or approved zero-emission or plug-in hybrid electric vehicles. Among the eligible vehicles are neighborhood electric vehicle
Neighborhood electric vehicle
A Neighborhood Electric Vehicle is a U.S. denomination for battery electric vehicles that are legally limited to roads with posted speed limits as high as depending on the particular laws of the state, usually are built to have a top speed of , and have a maximum loaded weight of 3,000 lbs...
s, battery electric
Battery electric vehicle
A battery electric vehicle, or BEV, is a type of electric vehicle that uses chemical energy stored in rechargeable battery packs. BEVs use electric motors and motor controllers instead of, or in addition to, internal combustion engines for propulsion.A battery-only electric vehicle or...
, plug-in hybrid electric, and fuel cell
Fuel cell
A fuel cell is a device that converts the chemical energy from a fuel into electricity through a chemical reaction with oxygen or another oxidizing agent. Hydrogen is the most common fuel, but hydrocarbons such as natural gas and alcohols like methanol are sometimes used...
vehicles including cars, trucks, medium- and heavy-duty commercial vehicles, and zero-emission motorcycles. Vehicles must be purchased or leased on or after March 15, 2010. Rebates of up to $5,000 per light-duty vehicle are available for individuals and business owners who purchase or lease new eligible vehicles. Certain zero-emission commercial vehicles are also eligible for rebates up to $20,000.
According to the Clean Vehicle Rebate Program a total of $1.4 million were distributed in 2010 for 213 plug-in vehicles that received the rebate, leaving $2.3 million available for 2011. In January 2011 the California Energy Commission
California Energy Commission
The California Energy Commission is California’s primary energy policy and planning agency. Created in 1974 and headquartered in Sacramento, the Commission has responsibility for activities that include forecasting future energy needs, promoting energy efficiency through appliance and building...
(CEC) allocated a $2 million contribution for the program, and considering the $5 million coming in second year funding, funds available for the rebates will amount to $9.3 million in 2011. The additional $2 million provided by CEC are reserved for rebates of vehicles capable of carrying four passengers and highway driving, providing enough money for 400 more buyers of such plug-in vehicles to benefit from the program. Once these funds were exhausted, the 2011-2012 program offered a lower rebate of up to $2,500. An additional $15 million was allocated for the 2011-2012 year program. Current availability of CVRP funds can be checked on the California Center for Sustainable Energy web site.
The 2011 Chevrolet Volt
Chevrolet Volt
The Chevrolet Volt is a plug-in hybrid electric vehicle manufactured by General Motors. The Volt has been on sale in the U.S. market since mid-December 2010, and is the most fuel-efficient compact car sold in the United States, as rated by the United States Environmental Protection Agency...
was not submitted for application to the Clean Vehicle Rebate Project rebate and therefore is not eligible for the $5,000 rebate. The reason is that the Volt does not meet the 10-year 150 miles (241.4 km) battery warranty requirement for partial zero-emissions vehicle
Partial zero-emissions vehicle
A Partial Zero Emissions Vehicle is a vehicle that has zero evaporative emissions from its fuel system, has a 15-year warranty on its emission-control components, and meets SULEV tailpipe-emission standards....
s (Enhanced AT-PZEV). The Volt team explained that for the launch GM decided to go with a common national package which includes an 8-year 100000 miles (160,934 km) battery warranty. A configuration which qualifies for the CARB Enhanced AT-PZEV package is scheduled for the model year 2013, expected by mid 2012.
Other states
Several states have established incentives and tax exemptions for BEVBattery electric vehicle
A battery electric vehicle, or BEV, is a type of electric vehicle that uses chemical energy stored in rechargeable battery packs. BEVs use electric motors and motor controllers instead of, or in addition to, internal combustion engines for propulsion.A battery-only electric vehicle or...
s and PHEVs, and other non-monetary incentives, as detailed in the following table:
| State incentives for plug-in electric vehicles | |||||
|---|---|---|---|---|---|
| State | Amount of incentive |
Type of PEV/vehicle |
Type of incentive |
Carpool lane access |
Comments |
| Arizona Arizona Arizona ; is a state located in the southwestern region of the United States. It is also part of the western United States and the mountain west. The capital and largest city is Phoenix... |
BEVs | Lower licensing fees | Yes | Eligibility for PHEVs depends on the extent to which the vehicle is powered by electricity. | |
| California California California is a state located on the West Coast of the United States. It is by far the most populous U.S. state, and the third-largest by land area... |
up to $2,500 | BEV Battery electric vehicle A battery electric vehicle, or BEV, is a type of electric vehicle that uses chemical energy stored in rechargeable battery packs. BEVs use electric motors and motor controllers instead of, or in addition to, internal combustion engines for propulsion.A battery-only electric vehicle or... s |
Purchase rebate | Yes | Free access to HOVs through January, 1st, 2015, which also benefits material gas Natural gas vehicle thumb|right|200px|2009 [[Honda Civic GX]] hooked up to Phill refueling system.A natural gas vehicle or NGV is an alternative fuel vehicle that uses compressed natural gas or liquefied natural gas as a clean alternative to other fossil fuels... and hydrogen Hydrogen vehicle A hydrogen vehicle is a vehicle that uses hydrogen as its onboard fuel for motive power. Hydrogen vehicles include hydrogen fueled space rockets, as well as automobiles and other transportation vehicles... fuel cell vehicle Fuel cell vehicle A Fuel cell vehicle or Fuel Cell Electric Vehicle is a type of hydrogen vehicle which uses a fuel cell to produce electricity, powering its on-board electric motor... s. |
| up to $3,000 | PHEVs | Purchase rebate | No | PHEV access to HOV lanes pending approval in state legislature. | |
| up to $1,500 | Electric motorcycles Electric motorcycles and scooters Electric motorcycles and scooters are vehicles with two or three wheels that use electric motors to attain locomotion. Electric motorcycles, as distinguished from scooters, do not have a step-through frame.... and NEVs Neighborhood electric vehicle A Neighborhood Electric Vehicle is a U.S. denomination for battery electric vehicles that are legally limited to roads with posted speed limits as high as depending on the particular laws of the state, usually are built to have a top speed of , and have a maximum loaded weight of 3,000 lbs... |
Purchase rebate | No | ||
| Colorado Colorado Colorado is a U.S. state that encompasses much of the Rocky Mountains as well as the northeastern portion of the Colorado Plateau and the western edge of the Great Plains... |
up to $6,000 | BEVs and PHEVs |
Income tax credit | No | Tax credit Tax credit A tax credit is a sum deducted from the total amount a taxpayer owes to the state. A tax credit may be granted for various types of taxes, such as an income tax, property tax, or VAT. It may be granted in recognition of taxes already paid, as a subsidy, or to encourage investment or other behaviors... totaling 75 to 85% of the cost premium for a PEV purchase up to $6,000. A 20% rebate also available for EV charger installation. |
| District of Columbia | BEVs and PHEVs |
Excise tax exemption and reduced registration fees | n.a. | ||
| Florida Florida Florida is a state in the southeastern United States, located on the nation's Atlantic and Gulf coasts. It is bordered to the west by the Gulf of Mexico, to the north by Alabama and Georgia and to the east by the Atlantic Ocean. With a population of 18,801,310 as measured by the 2010 census, it... |
$5,000 | PHEV conversion |
Limited conversion rebate |
Yes | In addition, EVs are exempt from most insurance surcharges. |
| Georgia Georgia (U.S. state) Georgia is a state located in the southeastern United States. It was established in 1732, the last of the original Thirteen Colonies. The state is named after King George II of Great Britain. Georgia was the fourth state to ratify the United States Constitution, on January 2, 1788... |
up to $5,000 | BEVs | Income tax credit | Yes | Tax credit of 20% of the cost of a zero emission vehicle up to $5,000. |
| | up to $2,500 | Alternative fuel Alternative fuel vehicle An alternative fuel vehicle is a vehicle that runs on a fuel other than "traditional" petroleum fuels ; and also refers to any technology of powering an engine that does not involve solely petroleum... conversion |
Income tax credit | Yes | Tax credit of 10% of the conversion cost for a vehicle converted to run solely on an alternative fuel and meets the standards for a low-emission vehicle up to $2,500. PHEVs not included. | |
| Hawaii Hawaii Hawaii is the newest of the 50 U.S. states , and is the only U.S. state made up entirely of islands. It is the northernmost island group in Polynesia, occupying most of an archipelago in the central Pacific Ocean, southwest of the continental United States, southeast of Japan, and northeast of... |
up to $5,000 | BEVs and PHEVs |
Purchase rebate | n.a. | Available for both PEV purchase and charging station costs. Up to $4,500 for vehicle only. |
| Illinois Illinois Illinois is the fifth-most populous state of the United States of America, and is often noted for being a microcosm of the entire country. With Chicago in the northeast, small industrial cities and great agricultural productivity in central and northern Illinois, and natural resources like coal,... |
up to $4,000 | BEVs, PHEVs and conversions |
State rebate | No | Covers 80% of cost premium or conversion price, up to $4,000. |
| Louisiana Louisiana Louisiana is a state located in the southern region of the United States of America. Its capital is Baton Rouge and largest city is New Orleans. Louisiana is the only state in the U.S. with political subdivisions termed parishes, which are local governments equivalent to counties... |
up to $3,000 | BEVs, PHEVs and conversions |
Income tax credit | No | Tax credit of 50% of cost premium for BEV/PHEV purchase, 50% of conversion cost, or a tax credit worth 10% of the cost of a new BEV/PHEV vehicle up to $3,000. This same credit also applies to charge station costs. |
| Montana Montana Montana is a state in the Western United States. The western third of Montana contains numerous mountain ranges. Smaller, "island ranges" are found in the central third of the state, for a total of 77 named ranges of the Rocky Mountains. This geographical fact is reflected in the state's name,... |
up to $500 | Alternative fuel conversion | Income tax credit | No | Credit only available for conversion costs up to $500 or 50% of conversion cost. Includes electric car conversion. |
| New Jersey New Jersey New Jersey is a state in the Northeastern and Middle Atlantic regions of the United States. , its population was 8,791,894. It is bordered on the north and east by the state of New York, on the southeast and south by the Atlantic Ocean, on the west by Pennsylvania and on the southwest by Delaware... |
up to $4,000 | BEVs | Sales tax exemption | Yes | Exemption for qualifying BEVs only, not PHEVs. Rebates on BEV purchases also available for local governments. |
| Oklahoma Oklahoma Oklahoma is a state located in the South Central region of the United States of America. With an estimated 3,751,351 residents as of the 2010 census and a land area of 68,667 square miles , Oklahoma is the 28th most populous and 20th-largest state... |
50% cost | BEVs, PHEVs and conversions |
Income tax credit | No | Credit applies to either conversion cost or the cost premium of a new BEV purchase. For PHEVs, the credit is based on the portion of the vehicle attributable to propulsion by electricity. Tax credit also available for 75% of charge station cost. |
| Oregon Oregon Oregon is a state in the Pacific Northwest region of the United States. It is located on the Pacific coast, with Washington to the north, California to the south, Nevada on the southeast and Idaho to the east. The Columbia and Snake rivers delineate much of Oregon's northern and eastern... |
up to $5,000 | PHEVs and conversions | Income tax credit | No | Available for conversion or PHEV purchase costs only. |
| up to $1,500 | BEVs | Income tax credit | No | Tax credit for purchase of or conversion to BEV. | |
| Pennsylvania Pennsylvania The Commonwealth of Pennsylvania is a U.S. state that is located in the Northeastern and Mid-Atlantic regions of the United States. The state borders Delaware and Maryland to the south, West Virginia to the southwest, Ohio to the west, New York and Ontario, Canada, to the north, and New Jersey to... |
up to $3,500 | BEVs and PHEVs |
Purchase rebate | n.a. | DEP will offer a $3,500 rebates for Plug-In Hybrid Electric Vehicles (PHEV) (battery 10 kWh or over) and Battery Electric Vehicle (EV) (battery under 10 kWh) to the first 500 qualified applicants. A $1000 rebate will be offered for any PHEV or EV (battery < 10 kWh). Additionally, $1000 rebates are available for Natural Gas fueled (CNG), Propane fueled (LPG) and Hydrogen and Fuel Cell vehicles (FC). A $500 rebate will be offered for Electric motorcycles/scooters (EMC). Rebate available up to 6-months after purchase. |
| South Carolina South Carolina South Carolina is a state in the Deep South of the United States that borders Georgia to the south, North Carolina to the north, and the Atlantic Ocean to the east. Originally part of the Province of Carolina, the Province of South Carolina was one of the 13 colonies that declared independence... |
up to $1,500 | BEVs and PHEVs |
Income tax credit | No | Tax credit equalling 20% of federal credits for PHEVs and BEVs. |
| Tennessee Tennessee Tennessee is a U.S. state located in the Southeastern United States. It has a population of 6,346,105, making it the nation's 17th-largest state by population, and covers , making it the 36th-largest by total land area... |
$2,500 | BEVs | Tax rebate | n.a. | Only to the buyers of the first 1,000 electric vehicles sold in the state. |
| Utah Utah Utah is a state in the Western United States. It was the 45th state to join the Union, on January 4, 1896. Approximately 80% of Utah's 2,763,885 people live along the Wasatch Front, centering on Salt Lake City. This leaves vast expanses of the state nearly uninhabited, making the population the... |
up to $2,500 | Conversions only | Income tax credit | Yes | |
| |up to $750 | BEVs and PHEVs |
Income tax credit | Yes | ||
| Washington | BEVs and PHEVs |
Sales tax | No | BEVs are exempt from 6.5% sales tax and PHEVs exempt from the motor vehicle sales tax of 0.3%. Tax exemptions also apply to charge station parts and labor costs. |
Other states considering similar incentives are Connecticut
Connecticut
Connecticut is a state in the New England region of the northeastern United States. It is bordered by Rhode Island to the east, Massachusetts to the north, and the state of New York to the west and the south .Connecticut is named for the Connecticut River, the major U.S. river that approximately...
, Massachusetts
Massachusetts
The Commonwealth of Massachusetts is a state in the New England region of the northeastern United States of America. It is bordered by Rhode Island and Connecticut to the south, New York to the west, and Vermont and New Hampshire to the north; at its east lies the Atlantic Ocean. As of the 2010...
, New York
New York
New York is a state in the Northeastern region of the United States. It is the nation's third most populous state. New York is bordered by New Jersey and Pennsylvania to the south, and by Connecticut, Massachusetts and Vermont to the east...
, and Texas
Texas
Texas is the second largest U.S. state by both area and population, and the largest state by area in the contiguous United States.The name, based on the Caddo word "Tejas" meaning "friends" or "allies", was applied by the Spanish to the Caddo themselves and to the region of their settlement in...
.
See also
- Government incentives for fuel efficient vehicles in the United States
- Hybrid tax creditHybrid tax creditThe U.S. Energy Policy Act of 2005 established a federal income tax credit of up to $3,400 for the purchase of new hybrid vehicles, purchased or placed into service after December 31, 2005. Vehicles purchased after December 31, 2010 are not eligible for this credit...
- List of modern production plug-in electric vehicles
- Plug In AmericaPlug In AmericaPlug In America is a 501 non-profit educational organization that promotes and advocates the use of plug-in cars, trucks and sports utlilty vehicles powered by domestic and renewable electricity which it claims will help reduce dependence on fossil fuels, improve the global environment and...
External links
- Clean Vehicle Rebate Project website
- Overview of Tax Incentives for Electrically Chargeable Vehicles in the E.U.
- U.S. Federal & State Incentives & Laws
- U.S. State and Federal Incentives for EVs, PHEVs and Charge Stations
- US Tax Incentives for Plug-in Hybrids and Electric Cars
- New Energy Tax Credits for Electric Vehicles purchased in 2009
- Plug-in Tracker: A comprehensive list of highway-capable PEVs (cars and trucks, 2- and 3-wheeled and commercial vehicles)