Electric Vehicle Tax Breaks: Massachusetts' Incentives Explained

how to massachussets electric vehicle tax breaks

The state of Massachusetts has implemented several initiatives to promote the adoption of electric vehicles (EVs), including tax breaks and incentives. The Massachusetts Electric Vehicle Incentive Program (MassEVIP) offers grants to cover the cost of purchasing or leasing qualified EVs and installing EV charging stations. Additionally, the Massachusetts Offers Rebates for Electric Vehicles (MOR-EV) program provides rebates for the purchase or lease of electric vehicles, encouraging residents to make the switch to more environmentally friendly transportation options. With a growing number of EV drivers in the state, Massachusetts is committed to expanding access to EV infrastructure and supporting the electrification of its vehicle fleet.

Characteristics Values
Name of the program Massachusetts Offers Rebates for Electric Vehicles (MOR-EV) Program
Aim Reduce air pollution and greenhouse gas emissions and support greater adoption of electric vehicles
Type of incentives Rebates, grants, federal tax credits
Amount of incentives Up to $7,500 in federal tax credits for new, eligible electric vehicles; up to $4,000 for used, eligible electric vehicles; up to $6,000 for new and used light-duty electric vehicles and motorcycles; $2,500 for new BEVs under $50,000 with at least 25 miles of electric range; $1,500 for new PHEVs under $50,000 with at least 25 miles of electric range; 60% of the cost of Level 1 or Level 2 EV chargers (up to $50,000 per street address)
Eligible entities Residents, corporations, non-profits, businesses, local governments, public universities and colleges, state agencies
Application process First-come, first-served basis until funds are exhausted
Additional benefits Reduced vehicle price cap, improved air quality, support for clean vehicle market information
Funding sources Executive Office of Energy and Environmental Affairs' Department of Energy Resources (DOER), Massachusetts' portion of the Volkswagen Environmental Mitigation Trust, Regional Greenhouse Gas Initiative (RGGI)

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The Massachusetts Electric Vehicle Incentive Program (MassEVIP)

MassEVIP provides grants to cover a significant portion of the cost of purchasing or leasing qualified electric vehicles and zero-emission motorcycles. Local governments, public universities and colleges, and state agencies are among the eligible applicants. The program offers funding for a maximum of 25 vehicles per applicant, including EVs, plug-in hybrid electric vehicles (PHEVs), and zero-emission motorcycles. The grants are available on a first-come, first-served basis until the allocated funds are exhausted.

The program also extends to charging infrastructure. MassEVIP provides grants for the installation of Level 1 and Level 2 EV chargers at multi-family housing (MFHs) and educational campuses. 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. The grants cover 60% of the cost of the chargers and installation, up to a maximum of $50,000 per street address.

Additionally, MassEVIP offers incentives for employers and fleet operators to install EV charging stations at non-residential places of business with 15 or more employees. This component of the program, known as MassEVIP Workplace & Fleet Charging, is designed to increase the availability of EV charging infrastructure across the state.

The funding for MassEVIP comes from various sources, including the Volkswagen Environmental Mitigation Trust and the Massachusetts Department of Environmental Protection (MassDEP). The program is part of the state's commitment to promoting sustainable transportation and reducing greenhouse gas emissions. By offering incentives and rebates, MassEVIP aims to remove financial barriers and make EVs a more attractive option for residents, contributing to a cleaner and more environmentally friendly Massachusetts.

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Rebates for eligible vehicles

The Massachusetts Offers Rebates for Electric Vehicles (MOR-EV) Program provides rebates for eligible vehicles. The program is funded by the Executive Office of Energy and Environmental Affairs' Department of Energy Resources (DOER) and aims to reduce air pollution and greenhouse gas emissions by encouraging the adoption of electric vehicles. The program offers rebates to residents, corporations, and other entities that register their on-road zero-emission vehicles in Massachusetts. This includes rebates for the purchase or lease of eligible battery-electric vehicles, fuel-cell electric vehicles, and zero-emission motorcycles.

The amount of the rebate depends on the type of vehicle and the purchase price. For fully electric vehicles with a final sales price under $50,000, the rebate was $2,500 as of May 2022. For plug-in hybrid vehicles (PHEVs) with a similar price and at least 25 miles of electric range, the rebate was $1,500. It is important to note that rebate amounts and eligibility criteria may change over time, so interested individuals should refer to the official MOR-EV Program website for the most up-to-date information.

In addition to the MOR-EV Program, Massachusetts also has the Electric Vehicle Incentive Program (MassEVIP). This program provides grants for the purchase or lease of qualified electric vehicles and zero-emission motorcycles to local governments, public universities and colleges, and state agencies. MassEVIP also offers grants for the installation of EV charging stations at MFHs and educational campuses.

To further encourage the use of electric vehicles, Massachusetts has also implemented a tax credit for eligible vehicles. As of January 2024, consumers can receive a federal tax credit of up to $7,500 when purchasing a new, eligible electric vehicle. This credit is redeemable at the point of sale with dealerships registered with the IRS.

National Grid electricity customers in Massachusetts can also take advantage of the Charge Smart MA mobile app. This app allows customers to track their EV charging costs and earn rebates, which are credited directly to their electric bill.

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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 daily.

The MassEVIP 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 at least five residential units, and educational campuses with a minimum of 15 students on campus.

The MassEVIP Workplace & Fleet Charging Program offers 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. This program is also available to eligible private, public, or non-profit workplaces and fleets with a minimum of 15 on-site employees.

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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Federal tax credits

The Massachusetts Offers Rebates for Electric Vehicles (MOR-EV) Program offers rebates to residents, corporations, and other entities that register their on-road zero-emission vehicles in Massachusetts. The program is funded by the Executive Office of Energy and Environmental Affairs' Department of Energy Resources (DOER).

Consumers can receive up to $7,500 in federal tax credits when purchasing a new, eligible electric vehicle and up to $4,000 when purchasing a used, eligible electric vehicle. These tax credits will be redeemable at the point of sale with dealerships that have registered with the IRS as of January 2024.

The Massachusetts Department of Environmental Protection Electric Vehicle Incentive Program (MassEVIP) is a rolling grant program aimed at making electric vehicles more widely available across the state. The program provides incentives for public entities to buy or lease EVs, with funding amounts varying based on vehicle type and means of acquisition, with a maximum of $7,500 per vehicle.

The MassEVIP program also provides grants for workplace charging, encouraging 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 for this grant.

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State EV incentives

The state of Massachusetts has introduced several incentives to encourage the adoption of electric vehicles (EVs) and reduce air pollution and greenhouse gas emissions. Here is an overview of the state EV incentives available in Massachusetts:

Massachusetts Offers Rebates for Electric Vehicles (MOR-EV) Program:

The MOR-EV program offers rebates to consumers, including residents, corporations, non-profits, and businesses, who register their on-road zero-emission vehicles in Massachusetts. The rebates are available 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. The program also offers rebates for used EVs and provides additional incentives for income-qualifying residents. The rebate amount can be up to $3,500 for eligible new ZEVs.

Massachusetts Electric Vehicle Incentive Program (MassEVIP):

The MassEVIP program provides grants for the purchase or lease of qualified EVs and zero-emission motorcycles. Eligible applicants include local governments, public universities and colleges, and state agencies. The program offers funding for a maximum of 25 vehicles per applicant, and the grants are available on a first-come, first-served basis until funds are exhausted. MassEVIP also provides grants for the installation of Level 1 or Level 2 EV chargers at MFHs and educational campuses, covering up to 60% of the cost, with a maximum of $50,000 per street address.

Public Access Charging Program:

This program provides grants to non-residential entities for the installation of Level 2 EV chargers. The grants cover 80% of the cost of the charger and installation, up to a maximum of $50,000 per street address. Installations at government properties qualify for 100% of the cost, also with a maximum of $50,000. The EV chargers installed through this program must be available to the public for at least 12 hours per day.

Massachusetts NextZero Program:

The NextZero program offers incentives to residential customers of participating Massachusetts municipal light plants (MLPs). These incentives can include free or discounted Level 2 EV chargers, and the specific incentives vary by MLP.

Utility-Specific Incentives:

In addition to the statewide programs, there are also utility-specific incentives offered by municipal utilities and investor-owned utilities operating in Massachusetts. For example, Danvers Electric, Eversource, and Georgetown Municipal Light Department provide various incentives related to alternative fuels and vehicles.

Frequently asked questions

The Massachusetts Electric Vehicle Incentive Program (MassEVIP) is a grant program that makes electric vehicles (EVs) more widely available across the state. The program provides funding for the purchase or lease of qualified EVs and zero-emission motorcycles, as well as incentives for installing EV charging stations.

Eligible applicants for the MassEVIP grants include local governments, public universities and colleges, and state agencies.

Funding amounts vary based on vehicle type and means of acquisition, with a maximum of $7,500 per vehicle for the purchase or lease of EVs, and up to $50,000 per street address for the installation of EV charging stations.

Massachusetts Offers Rebates for Electric Vehicles (MOR-EV) is a program that provides rebates of up to $3,500 for the purchase or lease of eligible new zero-emission vehicles (ZEVs). There are also federal tax credits of up to $7,500 for the purchase of a new eligible electric vehicle and up to $4,000 for a used one.

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