The United States has several policies and initiatives in place at the federal, state, and local levels to promote the adoption of electric vehicles (EVs) and reduce greenhouse gas emissions in the transportation sector. Here are some key aspects of the US EV policy.
Federal Policy
Demand incentives
- The federal government provides EV purchase tax credit up to $7,500 but this varies depending on the vehicle’s battery capacity but could provide a significant financial benefit to EV buyers and year of purchase.
- The tax credit for plug-in hybrid electric vehicles is up to 15% of the vehicle purchase price, while the tax credit for electric vehicles (EVs) and fuel cell electric vehicles (FCEVs) is up to 30% of the vehicle purchase price.
- This tax credit is available for electric vehicles and fuel cell vehicles (FCV). To determine vehicle eligibility for a tax credit, visit Clean Vehicle Tax Credits, and for more information such as requirements and claiming the credit, click here.
- The Clean School Bus Program is a $5 billion initiative over five years (FY 2022-2026) to help school districts replace existing school buses with zero-emission and low-emission models. The program is awarding $1 billion to 389 school districts for electric and low-emission school buses. Rebates are being accepted until January 31st, 2024. Click to learn more about the CSB rebate program and CSB.
Supply-side incentives
- Low or No Emission Vehicle Program provides funding to state and local governmental authorities for the purchase or lease of zero-emission and low-emission transit buses and for the acquisition, construction, and leasing of required supporting facilities. For more information, check this link.
- To know more about Grants for Buses and Bus Facilities, the eligible recipients, funding availability, and allocation funding check the Grants for Buses and Bus Facilities Program.
Charging infrastructure
- Expanding National EV Charging Network to build a national network of 500,000 electric vehicles.
- Infrastructure Investment and Jobs Act (IIJA) established two new grant programs, NEVI and CFI
- The NEVI program provides funding up to 80% of eligible project costs to states for the strategic deployment of EV charging stations and the establishment of an interconnected network. To learn more about the application process, click on the NEVI link. To see the distribution of funds per state, click on the second link. To get all the necessary documents, refer to the third link.
- The NEVI program includes the Charging Infrastructure for Publicly Accessible Electric Vehicles (CFI) program, which provides additional funding for the deployment of EV charging stations accessible to the public. Click here to learn more about the CFI program, including eligibility requirements and funding availability.
- The Federal Highway Administration (FHWA) and the U.S. Department of Energy (DOE) supported the development and expansion of a national network of electric vehicle charging stations along major highways. For more detailed information on EV Charging infrastructure click here.
Battery development
- Advanced Manufacturing Production Credit (AMPC) provides a tax credit of up to 30% of the cost of manufacturing EV batteries in the United States. The credit is available to companies that produce batteries that meet certain performance and environmental standards. To verify eligibility and to know the tax credit amount, visit the AMPC page.
- DOE Battery Grants and Loans: The Department of Energy (DOE) offers several grants and loans to support battery research and development. These programs include the Battery Manufacturing and Materials Research and Development Program, Battery Recycling and Reuse Initiative, and Advanced Battery Manufacturing Loan Program. For more information about eligible use, period of availability, and funding amount, visit MESC.
Federal Fleet Electrification
- The federal government aimed to electrify its vehicle fleet, which included plans to purchase electric vehicles for various agencies.
- ZEV Fleet Strategic Plans targets to acquire almost 9,500 light-duty ZEVs by the year 2023 and all acquisitions of light-duty vehicles to be ZEVs by the end of the fiscal year 2027. Approved plans for over 8,500 charging port installations by the fiscal year of 2023. If you want to know more about the details, please refer to this link.
- In support of fleet electrification, it implemented some programs and initiatives such as the Federal Fleet ZEV Ready Center which provides a variety of resources and support to federal agencies to help them electrify their fleets. You may read the guidance for vehicle selection and procurement to charging infrastructure installation and maintenance here. For more helpful tools such as the EV toolkit and EV live training, visit this link.
State Policies
Leading the charge in the electrification movement, the state level has implemented policies, regulations, and programs to promote EV adoption. Their proactive approach has played a crucial role in promoting EV adaptability and establishing charging infrastructure across the nation.
State Incentives
Many states offered additional incentives for electric vehicle buyers, including rebates, tax credits, and reduced vehicle registration fees. These incentives vary by state, you may use this government site to view state incentives related to electric vehicles.
ZEV Mandates
- Some states, including California, had Zero Emission Vehicle (ZEV) mandates, requiring automakers to sell a certain percentage of electric or zero-emission vehicles in their fleets. This encouraged automakers to produce and promote EVs.
- Currently, there are at least 13 states that have adopted California’s low-emission vehicle (LEV) and zero-emission vehicle (ZEV) standards requiring manufacturers to sell a certain number of ZEVs per year. For more information on the ZEV program per state, click the link below.
California, Connecticut, Maine, Maryland, Massachusetts, Minnesota, New Jersey, Nevada, New Mexico, New York, Oregon, Rhode Island, Vermont, Virginia, Washington, Colorado, Delaware, Pennsylvania, District of Columbia
Charging Infrastructure Funding
- Several states provided funding and incentives to expand public charging infrastructure, making it more convenient for EV owners to charge their vehicles.
- Charging infrastructure funded by National Electric Vehicles Infrastructure under Bipartisan Infrastructure Law varies by state. To know NEVI fund per state, click this link and see the Joint Office State Plans for EV charging website.
- For more information, provided below are different references of EV charging infrastructure programs and the NEVI website available per state:
Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, District of Columbia, Florida, Georgia, Hawaii, Idaho, Illinois, Indiana, Iowa, Kansas, Kentucky, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Mississippi, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Texas, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming
Local Policies
- Local Incentives: To promote the adoption of electric vehicles, various municipalities and cities are offering enticing benefits, including complimentary charging stations, access to carpool lanes, and reduced parking fees. These initiatives aim to make electric vehicles a more attractive and practical choice for commuters.
- Public Transportation Electrification: Numerous cities were adopting electric buses and other electric-powered transit modes to modernize their public transportation systems.
- Electric Vehicle Fleets: Some local governments and organizations were transitioning their vehicle fleets to electric options to reduce emissions.
You may refer to your local EV website and state website (mentioned) for more information.
For inquiries: You may email the Technical Response Service at technicalresponse@icf.com or call 800-254-6735 for assistance
The U.S. government, along with state authorities and the private sector, is actively fostering an EV-friendly ecosystem to lower the transportation sector’s carbon footprint and pave the way for clean and sustainable mobility.
For EV inquiries you may email the Technical Response Service at technicalresponse@icf.com or call 800-254-6735 for assistance.
