The $7,500 federal electric vehicle tax credit expired on September 30, 2025. If you’ve been waiting on an EV purchase and assumed the credit was still available, it isn’t — at least not at the federal level. The One Big Beautiful Bill did not renew it. But 28 states still have their own EV incentive programs in place, and the lease loophole that previously made the credit accessible at the point of sale has a state-level equivalent in several markets.
The math on EV ownership changed when the federal credit disappeared. A $45,000 electric vehicle that cost $37,500 after the credit now costs $45,000. That’s real money. Whether state incentives close enough of that gap to make an EV purchase competitive with a comparable gas vehicle depends on where you live.
Here’s what’s still available — and how to find what applies in your state.
California remains the most generous. The Clean Vehicle Rebate Project (CVRP) provides $2,000 to $4,000 on new EVs and up to $4,500 for buyers under 400% of the federal poverty level. The state also has a separate Clean Cars 4 All program that offers up to $12,000 for low-income buyers who scrap an older gas vehicle and purchase an EV or hybrid. California accounts for roughly 40% of all EV sales in the US, and its incentive structure is a significant reason why.
Colorado offers a state income tax credit of $2,000 for new EVs under $80,000, stackable with utility company rebates that in some service territories bring the total discount to $3,500. New York’s Drive Clean Rebate provides up to $2,000 at the point of sale for vehicles under $60,000. New Jersey has no state sales tax on EVs — a saving of roughly $2,250 on a $45,000 vehicle — plus a $4,000 rebate program through its Charge Up New Jersey initiative. Massachusetts offers a $3,500 rebate through its MOR-EV program for vehicles under $55,000.
When the federal EV credit was active, leasing was a workaround: the leasing company (technically the vehicle owner) could claim the commercial EV credit and pass the savings to the lessee through lower monthly payments. That federal commercial credit also expired in 2025. But several states structure their incentives specifically to include leased vehicles, and some utility companies offer EV rebates that apply to leases regardless of ownership structure.
If you’re considering an EV in the next 12 months, get quotes on both purchase and lease configurations from dealers in your state and ask specifically whether the state rebate applies to the lease. In California, Colorado, and New York, lessees frequently qualify for the state program directly — the savings can make leasing more financially attractive than buying, even before the lower monthly payment calculation.
The Department of Energy maintains an incentives database at afdc.energy.gov/laws/search that covers federal, state, and utility incentives by zip code. The database updates monthly. Enter your location and vehicle type to see all active programs in your area. Note that utility company rebates — which range from $250 to $2,000 depending on your provider — are separate from state programs and can be stacked on top of state incentives.
The federal $4,000 used EV tax credit (for vehicles under $25,000) also expired on September 30, 2025. State programs vary on whether they cover used vehicles — California’s CVRP does not, but some utility rebate programs do. Check the DOE database for your state’s current rules on used EVs.
Many state programs include plug-in hybrids (PHEVs), though often at lower rebate amounts than full battery EVs. California, Colorado, and New York all include PHEVs in their incentive structures. The DOE database will show PHEV-specific amounts when you filter by vehicle type.