Federal and state tax incentives have long helped accelerate electric vehicle (EV) adoption by reducing costs for consumers, businesses, and key players in EV charging infrastructure. However, proposed legislative changes could lead to these tax credit incentives no longer benefiting stakeholders. This guide outlines existing policies, details two introduced bills, and shows the need to stay informed in a time of change.
Incentives for EV Buyers and Sellers Now
With a kickoff from the U.S. Energy Policy Act of 2005, the government offered a tax credit for purchases of hybrid cars when they entered the automobile scene. After revisions over the past two decades, the Inflation Reduction Act of 2022 expanded the EV tax credit, now known as the Clean Vehicle Credit. The federal tax credits are set up as follows:
Consumers: Up to $7,500 for new EVs, up to $4,000 for used EVs, up to $1,000 (30% credit) for home chargers, subject to income, vehicle, and location eligibility
Commercial fleets: $7,500 for vehicles under 14,000 pounds, and $40,000 credit for heavier ones, with the constraint that credits must not exceed 30% of the purchase price
Business EV chargers: 6% of the price, with a maximum credit of $100,000 for each property
The tax credits mean that individually converting to EVs could be financially beneficial, even for businesses planning to electrify their fleets. For detailed eligibility requirements of the Clean Vehicle Credits, refer to the 30C Tax Credit Eligibility Locator page and mapping tool from Argonne National Library.
The Two Bills for Change
Policies are always liable to change, and on May 2, 2024, Senator John Barrasso (R-WY) introduced what might bring about that change in the U.S. transport landscape—The ELITE Vehicles Act. The provisions eliminate federal EV and EV charging station investment tax credits, which gained some support.
Introduced on February 12, 2025, Senator Deb Fischer (R-NE) proposed the Fair SHARE Act, which would increase EV-associated costs but provide more funding for highway maintenance. However, as of May 2025, these bills are in the introductory phase and have not passed the senate.
Driving Forward
Despite the widespread electrification movement, EV policies are not guaranteed to stay established as they are now. Monitoring legislative developments is crucial for EV stakeholders to make informed financial decisions. While what’s next federal incentives are uncertain, we stay charging forward for a sustainable future with EVs and infrastructure that support them.
For updates on EV tax credits and charging solutions, check trusted resources like the Library of Congress.
At viveEV, we are committed to providing fast chargers that people can reliably utilize, boasting industry-leading uptimes. Check out viveEV.com for more information.