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Federal Incentives

Qualified Plug-In electric Drive Motor Vehicle Tax Credit

  • What:
    A tax credit is available for the purchase of a new qualified plug-in electric drive motor vehicle that draws propulsion using a traction battery that has at least four kilowatt hours of capacity, uses an external source of energy to recharge the battery, has a gross vehicle weight rating of up to 14,000 pounds, and meets specified emission standards.
  • How Much:
    The minimum credit amount is $2,500, and the credit may be up to $7,500, based on each vehicle�s traction battery capacity and the gross vehicle weight rating.
  • Expiration:
    This tax applies to vehicles acquired after December 31, 2009.  Through December 31, 2011, qualified plug-in electric vehicle conversions are also eligible for a tax credit for 10% of the conversion cost, not to exceed $4,000.

 

Federal Grant Programs

EPA- Diesel Emissions Reduction Act (DERA) Grant

  • What:
    Administered by the EPA � awarded on a regional basis, DERA funds are available yearly on a competitive grant basis.
  • How Much:
    EPA will fund the incremental cost of a replacement vehicle up to 25% of the total cost of the vehicle.

 

Clean Cities

  • What:
    Various grant opportunities nationally.  Available through each Clean Cities Coordinator.
  • How Much:
    Up to 50% total cost of the vehicle.  May vary with funding opportunities.

 

Congestion, Mitigation and Air Quality Funds � CMAQ Program

  • What:
    Federal money disbursed to states.  States administer to localities based on air quality.
  • How Much:
    Varies.  See State-by-State Programs.