Electric Vehicle Tax Breaks: Massachusetts' Incentives Explained

how to massachusetts electric vehicle tax breaks

The state of Massachusetts has implemented several initiatives to encourage the adoption of electric vehicles (EVs), including tax breaks and incentives. These measures are designed to reduce air pollution and greenhouse gas emissions, with the state aiming to have over 300,000 EVs on its roads by 2025. To achieve this, Massachusetts offers a range of grants and rebates for those looking to purchase or lease EVs, as well as incentives for the installation of EV charging stations.

Characteristics Values
Name of the program Massachusetts Offers Rebates for Electric Vehicles (MOR-EV) Program
Aim To reduce air pollution and greenhouse gas emissions and support greater adoption of electric vehicles
Type of rebates Rebates for the purchase or lease of eligible battery electric vehicles, fuel-cell electric vehicles, and zero-emission vehicles
Amount of rebates Up to $3,500 for the purchase or lease of eligible new ZEVs, up to $6,000 for new and used light-duty electric vehicles and motorcycles, and up to $7,500 in federal tax credits for eligible new electric vehicles
Eligibility Residents, corporations, businesses, non-profits, local governments, public universities and colleges, and state agencies
Application process First-come, first-served basis until funds are exhausted
Additional benefits The Public Access Charging Program provides grants for the cost of EV chargers and installation, and the Massachusetts Electric Vehicle Incentive Program (MassEVIP) provides grants for the purchase or lease of qualified EVs and zero-emission motorcycles
National Grid electricity customers benefit National Grid's mobile app, Charge Smart MA, allows customers to log in and credit any rebates earned directly to their electric bill, as well as track their EV charging costs

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The Massachusetts Electric Vehicle Incentive Program (MassEVIP)

MassEVIP consists of several components, including the Fleet Incentives program and the Workplace & Fleet Charging program. The Fleet Incentives program provides grants for public entities, local governments, public universities and colleges, and state agencies to acquire electric vehicles for their fleets. The program covers a range of vehicle types, including electric passenger cars, SUVs, trucks, and vans. Funding amounts vary based on vehicle type and acquisition method, with a maximum of $7,500 per vehicle.

The Workplace & Fleet Charging program offers incentives for employers and fleet operators to acquire and install Level 1 and Level 2 EV charging stations at their non-residential places of business. To be eligible, applicants must have 15 or more employees, and the charging stations must be available to the public for at least 12 hours per day. MassEVIP provides grants for up to 60% of the cost of charging equipment and installation, with a maximum of $50,000 per street address.

In addition to these programs, MassEVIP also includes the Public Access Charging Program, which provides grants to non-residential entities for the cost of EV chargers and installation. This program is specifically designed to increase public access to charging stations. Installations at government properties qualify for 100% of the cost, up to $50,000, while other non-residential entities can receive grants for 80% of the cost.

MassEVIP is funded by Massachusetts' portion of the Volkswagen Environmental Mitigation Trust and the Executive Office of Energy and Environmental Affairs' Department of Energy Resources (DOER). The program is a crucial component of Massachusetts' efforts to reduce air pollution, support the adoption of electric vehicles, and expand access to EV infrastructure.

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Rebates for electric vehicles

The Massachusetts Offers Rebates for Electric Vehicles (MOR-EV) Program offers rebates to consumers (residents, corporations, and other entities) who register their on-road zero-emission vehicles in Massachusetts. The program aims to reduce air pollution and greenhouse gas emissions and promote the wider adoption of electric vehicles.

The MOR-EV program provides rebates for the purchase or lease of eligible battery-electric vehicles and fuel-cell electric vehicles, including passenger cars, medium- and heavy-duty trucks, and other vehicle types. It also offers rebates for used EVs, a rebate adder for income-qualifying residents, and a rebate adder for medium- and heavy-duty vehicles registered or operating in census block groups that meet the State's Environmental Justice criteria.

The Massachusetts Electric Vehicle Incentive Program (MassEVIP) is another initiative that provides grants for the purchase or lease of qualified electric vehicles and zero-emission motorcycles. Eligible applicants for the MassEVIP program include local governments, public universities and colleges, and state agencies. Vehicle incentives are available for a maximum of 25 vehicles per applicant, including electric vehicles, plug-in hybrid electric vehicles, and zero-emission motorcycles.

MassEVIP also offers grants for EV charging stations, providing funding for up to 60% of the cost of Level 1 or Level 2 EV chargers installed at MFHs and educational campuses, with a maximum of $50,000 per street address. Eligible entities for these grants include private, public, or non-profit MFHs with at least five residential units and educational campuses with a minimum of 15 students on campus.

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Federal tax credits

The Massachusetts Offers Rebates for Electric Vehicles (MOR-EV) Program is a statewide initiative that aims to reduce air pollution and promote the adoption of electric vehicles. The program offers rebates to consumers who purchase or lease eligible electric vehicles, including battery electric vehicles and fuel-cell electric vehicles. The rebates are available for both new and used EVs, and there is also a rebate adder for income-qualifying residents. The program is administered by the Department of Energy Resources (DOER) within the Executive Office of Energy and Environmental Affairs.

In addition to the MOR-EV rebates, Massachusetts residents may also be eligible for federal tax credits when purchasing a new or used electric vehicle. These tax credits are offered by the United States Department of Energy and can be worth up to $7,500 for a new, eligible electric vehicle and up to $4,000 for a used one. As of January 2024, these tax credits can be claimed at the point of sale with dealerships registered with the IRS.

It is worth noting that the eligibility criteria and application processes for the MOR-EV rebates and the federal tax credits may differ. The MOR-EV program has specific requirements, such as vehicle type and income qualifications, that must be met to receive the rebates. The federal tax credits may have their own set of eligibility criteria and rules, which should be carefully reviewed before claiming the credits.

To maximize the benefits of purchasing or leasing an electric vehicle in Massachusetts, it is important to explore both the state and federal incentives available. The MOR-EV program and the federal tax credits work together to make electric vehicles more affordable and accessible to residents, helping to reduce the state's environmental impact and encourage a shift towards more sustainable transportation options.

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Grants for charging stations

The Massachusetts Electric Vehicle Incentive Program (MassEVIP) offers grants for charging stations. The MassEVIP Public Access Charging Program provides grants to non-residential entities for 80% of the cost of Level 2 EV chargers and installation, up to a maximum of $50,000 per street address for hardware and installation costs. Installations at government properties qualify for 100% of the cost, up to $50,000. To be eligible, qualified EV chargers must be available to the public for a minimum of 12 hours per day.

The MassEVIP program also provides grants for 60% of the cost of Level 1 or Level 2 EV chargers installed at MFHs and educational campuses, up to $50,000 per street address. Eligible entities for this grant include private, public, or non-profit MFHs with five or more residential units, and educational campuses with at least 15 students on campus.

The MassEVIP Workplace & Fleet Charging Program provides incentives for employers and fleet operators to acquire and install Level 1 and Level 2 EV charging stations. Applicants with 15 or more employees in non-residential places of business are eligible.

The MassDEP accepts applications for the MassEVIP grants on a first-come, first-served basis until all available funding is spent.

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The ZEV Commission

One of the key focuses of the ZEV Commission is evaluating opportunities for the electrification of the state fleet, including vehicles used by regional transit authorities. This involves assessing the feasibility of transitioning to zero-emission vehicles (ZEVs) and the potential benefits for the state. The commission also considers the potential impact on the gas tax revenue due to the projected loss from the increased purchase or operation of ZEVs.

To promote the adoption of ZEVs, the ZEV Commission explores policies that can incentivize consumers to make the switch. This includes recommending policies that provide rebates and incentives for the purchase or lease of ZEVs. These rebates can help offset the cost of acquiring ZEVs, making them more affordable for residents, corporations, and other entities.

Frequently asked questions

The MassEVIP is a Massachusetts DEP rolling grant program that provides grants for the purchase or lease of qualified electric vehicles (EVs) and zero-emission motorcycles. It also provides grants for EV charging stations.

MassEVIP provides grants for up to $7,500 per vehicle for the purchase or lease of EVs. For EV charging stations, it provides grants for up to $50,000 per street address for Level 1 or Level 2 EV chargers.

The MOR-EV Program offers rebates to consumers who register their on-road zero-emission vehicles in Massachusetts. It provides rebates for the purchase or lease of eligible new and used light-duty electric vehicles, including cars, trucks, and motorcycles.

MOR-EV offers rebates of up to $3,500 for the purchase or lease of eligible new zero-emission vehicles (ZEVs). Rebates of up to $6,000 are available for new and used light-duty electric vehicles and motorcycles.

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