Pennsylvania electric vehicle tax credits, rebates and incentives
Use this tool to find Pennsylvania generally available and qualifying tax credits, incentives and rebates that may apply to your purchase or lease of an electric vehicle. You'll find the… latest federal, Pennsylvania, local municipality, utility and automaker-sponsored programs that can reduce the price of your next EV or PHEV. We’re constantly updating the list of available programs, so make sure to check back often for the latest opportunities.
360 results
Federal Credit
$4,000Maximum RebateUnder the Inflation Reduction Act of 2022, the Internal Revenue Service (IRS) offers taxpayers a Used Clean Vehicle Tax Credit equal to 30% of the sale price up to a maximum credit of $4,000 for the purchase of a used plug-in electric or hydrogen fuel cell vehicle. Beginning January 1, 2024, Clean Vehicle Tax Credits may be initiated and approved at the point of sale at participating dealerships registered with the IRS. Dealers will be responsible for submitting Clean Vehicle Tax Credit information to the IRS. Buyers are advised to obtain a copy of an IRS "time of sale" report, confirming it was submitted successfully by the dealer. Not every version of the vehicle models will necessarily qualify. Please check with the dealer/seller to determine the eligibility of your specific vehicle.
For the vehicle to qualify:
- Price cannot exceed $25,000.
- Need to verify the Vehicle Identification Number (VIN).
- Must be at least two model years older than the current calendar year in which the vehicle was purchased.
- Must be sold through a dealership, private sales not permitted.
- Not have already been transferred after August 16, 2022, to a qualified buyer.
For individuals to qualify:
- Must meet income eligibility, depending on modified adjusted gross income (AGI) and tax filing status.
- Must not be the first owner of the qualifying vehicle.
- Has not been allowed a credit under this section for any sale during the 3-year period ending on the date of the sale of such vehicle.
- Purchased for personal use, not a business, corporation or for resale.
To learn more, visit https://www.irs.gov/credits-deductions/used-clean-vehicle-credit
State Rebate
$4,000Maximum RebateThe Department of Environmental Protection (DEP) through the Alternative Fuel Vehicle (AFV) Rebate program offers income-qualified residents a standard rebate of $3,000, or a total of $4,000 (which includes the additional rebate for eligible low-income applicants). Offer available towards the purchase of an eligible used battery electric vehicle. Not available for leasing. To qualify:
- Final purchase price of vehicle must be $45,000 or less.
- One-time pre-owned vehicle must be a maximum of 7 years old with an odometer reading of 75,000 miles or less.
- Purchase must be from a retail location or online retail service (no private sales allowed).
- Vehicle must have a valid Pennsylvania registration.
Additional information:
- For the $3,000 standard rebate, Pennsylvania residents must have a total household income below 300 percent of the Federal Income Poverty level as defined by the U.S. Department of Health and Human Services.
- For the $4,000 (standard rebate combined with the additional rebate), Pennsylvania residents must have a total household income below 150 percent of the Federal Income Poverty level, as defined by the U.S. Department of Health and Human Services.
To learn more and apply, visit https://www.pa.gov/agencies/dep/programs-and-services/grants-loans-rebates/alternative-fuel-vehicle-rebates-for-consumers.html
Used 2020 Tesla Model S
$8,000Vehicle RebatesUsed 2023 BMW i4
$8,000Vehicle RebatesUsed 2019 BMW i3
$8,000Vehicle RebatesUsed 2023 Chevrolet Bolt EUV
$8,000Vehicle RebatesUsed 2023 Genesis Electrified GV70
$8,000Vehicle RebatesUsed 2020 BMW i3
$8,000Vehicle RebatesUsed 2022 Volkswagen ID.4
$8,000Vehicle RebatesUsed 2023 Mercedes-Benz EQB
$8,000Vehicle RebatesUsed 2020 Tesla Model Y
$8,000Vehicle RebatesUsed 2022 Audi e-tron Sportback
$8,000Vehicle RebatesUsed 2022 Hyundai Kona Electric
$8,000Vehicle RebatesUsed 2022 Ford E-Transit Cargo Van
$8,000Vehicle RebatesUsed 2019 Volkswagen e-Golf
$8,000Vehicle RebatesUsed 2022 Audi e-tron
$8,000Vehicle RebatesUsed 2022 Mazda MX-30
$8,000Vehicle Rebates
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Federal EV Tax Credits Overview
Shopping for an electric vehicle (EV) or a plug-in hybrid electric vehicle (PHEV)? According to the landmark Inflation Reduction Act of August 2022, you can get up to $7,500 in tax credits if you purchase an EV or a PHEV, but it very much depends on the make and model you're considering. We'll give you the highlights here and encourage you to visit our in-depth analysis of the Inflation Reduction Act for full details. Additional incentives may be provided at the state and local levels, but our purpose here is to summarize federal EV tax incentives, not state and local incentives.
Federal EV Tax Credit Incentive #1: North American Final Assembly
You can't get any EV tax credits or PHEV tax credits unless the vehicle was assembled in North America, full stop. In the short run, this leaves some automakers out in the cold, but the idea is to create a new incentive to build clean vehicles right here on our home turf. Notably, meeting this final assembly requirement doesn't automatically mean you get a tax credit -- it just gets your foot in the door. Provided that the vehicle is assembled in North America, it may qualify for federal tax credits if further conditions are met. Specifically, the maximum $7,500 federal EV tax credit is made up of two separate $3,750 credits, one targeting EV battery minerals and the other EV battery components.
Federal EV Tax Credit Incentive #2: Origin of Critical Battery Minerals ($3,750 Tax Credit)
As with vehicle assembly, the U.S. government also wants to move the sourcing of critical battery minerals closer to home, at least in terms of trade partnerships. To this end, increasing percentages of critical EV battery minerals must be sourced from the U.S. itself or a U.S. free-trade partner, starting with 40% for 2023. The minimum percentage escalates quickly to 80% by 2027. Unless the EV or PHEV you purchase meets this requirement, you won't have access to at least half of the $7,500 maximum federal EV tax credit.
Federal EV Tax Credit Incentive #3: Origin of Battery Components ($3,750 Tax Credit)
Moving back to the assembly side, the U.S. likewise wants to incentivize the production of battery components at home or in free-trade partner countries. To enable this half of the $7,500 maximum tax credit for 2023, at least 50% of your vehicle's battery components must have been produced in the U.S. or in countries that have free-trade agreements with the U.S. Note that the minimum threshold escalates steadily to a full 100% by 2029, whereas the previous requirement regarding battery minerals stops (for now) at 80% in 2027.
Federal EV Tax Credit Incentive #4: No Involvement by Blacklisted Countries After 2023
Here's another one that's just about getting your foot in the door. In a not-so-subtle shot at China, which jumped out to a big lead in the EV battery business, the U.S. government has stipulated that once the calendar year flips to 2024, the EV or PHEV you purchase won't qualify for federal EV tax credits if any battery components came from a "foreign entity of concern," a short list that includes China, Russia, Iran and North Korea. For 2025, the stipulation will extend to critical battery minerals. Here again we can expect some short-term pain for automakers as they pivot from dependence on Chinese suppliers, but the financial incentives pushing that pivot are strong.
Federal EV Tax Credit Incentive #5: Price Limits
We use the plural because it depends on the type of vehicle you're considering. If it's an SUV, van, or pickup truck, it can't cost more than $80,000 or else it's not eligible for federal EV tax credits. For all other vehicle types, the eligibility limit drops to $55,000. The point of this incentive is to stimulate production of relatively affordable EVs as opposed to ultra-luxury models.
Federal EV Tax Credit Incentive #6: Buyer Income Limits
Finally, there's the question of how much money the buyer makes. Clearly the government wants to incentivize EV purchases within the middle class, because if you file your taxes as an individual, you won't qualify for federal EV tax credits unless you have a modified gross adjusted income (MAGI) of less than $150,000. If you file as head of household, that limit increases to $225,000, while joint filers can have a combined MAGI of up to $300,000.