Purchase And Lease Incentives

If you are interested in buying or leasing an electric vehicle, here’s what you need to know about federal, state, and other incentives.

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Federal Tax Credit

Plug-in electric vehicles qualify for a federal income tax credit of up to $7,500. The full amount of the tax credit depends on the battery size of the vehicle. If you buy the car in one year, you get the credit when you file your 1040 with the Internal Revenue Service (IRS) for that tax year. We say “up to” $7,500 because the credit is limited by your tax liability. If you owe $7,500 or more, you can take the full credit. If you owe less, say $5,000, you can take a credit on what you owe. The IRS will not write you a check.

This tax credit is available to car purchasers only. If you lease a car, the leasing company gets the tax credit, which is why several dealers are offering attractive leasing options. They are passing at least some of the value of the tax credit onto the terms of the lease.

You should know that the federal tax credits are going to be reduced and phased out for each manufacturer when that company sells 200,000 units in America. After that carmakers sell 200,000 EVs, the tax credit for that carmaker will stay fully in place for 3 months, then cut in half for 6 months, then cut in half again for 3 months, and then it expires. As of July 2018, Tesla has sold 200,000 EVs. General Motors (which makes the Chevrolet Bolt and Volt) sold its 200,000th car in the fourth quarter of 2018, so its federal tax credit will be cut in half starting on April 1, 2019. Of the car manufacturers in our program, Nissan is next in line to hit the 200,000-car-mark, but it's unclear when that will occur. We'll update this page as we learn more! 

Keep that in mind as you decide on which vehicle to buy or lease. It's an important consideration if you're waiting a few years to buy or if you prefer to lease now and buy later, with an eye towards getting an electric vehicle that is even better than what’s available today. We can expect quality improvements and several more choices by 2020, but it’s anyone’s guess at what an electric vehicle will cost then and what federal incentives will be available.

Learn more from energy.gov

State Drive Clean Rebate

The State of New York offers Drive Clean rebates for electric vehicles of up to $2,000 through Governor Andrew M. Cuomo's Charge initiative. Administered by the New York State Energy Research and Development Authority (NYSERDA), the Drive Clean rebate is a point-of-sale rebate for both purchase and lease of new electric cars and is only available at participating dealerships. See the program website for the full list of available vehicles, their rebate amounts (which depend on the range of the vehicle), participating dealerships, and frequently asked questions.

All of the dealerships participating in Drive Green with National Grid are participating Drive Clean dealerships as well. That means, when you get your vehicle through the Drive Green with National Grid program, you can stack the Drive Green with National Grid program discount on top of the Drive Clean rebate (and the federal tax credit!) For more information and current deals, see our sign-up form:

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Corporate Offers for National Grid Customers

National Grid partners with Original Equipment Manufacturers (OEMs) to offer discounts on electric vehicles to its customers. Check out current offers here.

Drive Green with National Grid

Green Energy Consumers is a non-profit organization that developed the Drive Green electric vehicle group-buy model in Massachusetts and Rhode Island in November 2016. National Grid has partnered with Green Energy Consumers to bring Drive Green to Upstate New York energy consumers. The resulting program, Drive Green with National Grid, launched in November 2018. We have built up a network of participating car dealerships who have agreed to offer fixed monthly discounts for electric vehicles to program participants, in addition to the federal tax credit and state Drive Clean rebate. To access current deals, click here.

You can save even more! Upstate New York customers can reduce their costs with the voluntary time-of-use rate by charging their electric vehicle during the off-peak hours of 11pm to 7am. Most EVs can be easily programmed to charge during these hours using an onboard timer, mobile app, outlet timer, or EV charging station. Learn more on National Grid's website.

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