April 11, 2024

How to Use the Washington State EV Tax Credit and EV Rebates

6 Min. Read

Washington is one of the leading states for EV adoption, and the state’s plan to ban Internal Combustion Engine (ICE) vehicle sales by 2030 will continue to impact electrification significantly.

But beyond the state’s progressive initiatives to support sustainable transportation and drive down travel costs for residents thanks to the low energy rates across the region, the state of Washington has also implemented a number of incentives and programs to foster EV adoption, including a Washington State EV tax credit.

In this article, we explore electric vehicle incentives and rebates across the state and how residents can benefit from Washington State’s EV tax credits and other generous initiatives to support greater electrification.

Washington State EV Incentives, Rebates and Tax Credits

Although the state government has implemented plans to transition new vehicle sales to EVs by 2030, residents of the state have also shown increasingly favorable support for driving electric vehicles, and EV adoption in Washington continues to grow.

Since 2017, battery electric vehicle sales, including fully electric vehicles and plug-in hybrid electric vehicles, have increased sixfold in the Evergreen State and now represent 18% of new vehicle sales.

The Move Ahead Washington plan, adopted in 2022, introduced a comprehensive range of measures to support electrification. It resulted in the creation of educational programs, ongoing studies on the impact of EVs, and new regulations designed to standardize the EV charging infrastructure.

One of the key incentives available in the Evergreen State is the Washington State EV tax credit. This measure waives sales use taxes on EV purchases with a limit of $15,000 per vehicle. Buyers can combine this tax credit with the federal EV tax credit, resulting in significantly lower purchase prices.

Businesses can qualify for another Washington State EV tax credit that covers 50% of the purchase of a qualifying medium or heavy-duty EV or a 75% credit on qualifying EV leases.

Distributing funding at the local level is another strategy used to support electrification. For instance, the Washington State Department of Commerce is awarding community EV charging station grants of up to $7,500 for Level 2 stations and $85,000 for DC Fast Charging locations.

The state of Washington has also implemented an update to its building code that requires properties to have at least 10% of the parking spaces ready for EV charging.

The development of the West Coast Electric Highway is another noteworthy measure. The state of Washington is partnering with California and Oregon to connect the West Coast and create what could be the longest alternative fuel corridor in the country.

How Are Washington Cities Supporting Electrification?

The state of Washington is fostering local electrification efforts by providing guidance and regulations for local programs. Local governments can also receive funding from the state through the EV Charging Station Community Grant Program Authorization, among other programs.

Offering a combination of support and funding has resulted in several cities developing their own electrification incentives.

For instance, the city of Seattle has a program that covers up to 100% of the cost of EV charging for multifamily properties, while another program offers rebates of up to 40% on freight electrification projects. Businesses can qualify for additional rebates designed to support fleet electrification projects.

Tacoma has taken an innovative approach to incorporating public EV charging into the existing urban infrastructure by partnering with utilities to mount EV charging stations to light poles.

The city of Bellevue is another interesting example. The city has 15 public EV charging stations with a plan to add more and create a streamlined application process for EV charging projects.

Local governments also include Native nations. Thanks to the Washington State University Energy Program, $1.7 million in federal funding is being distributed to tribal entities to support diverse electrification projects.

Beyond the Washington State EV Tax Credit: Important Upcoming Electrification Incentives in Washington

Research-backed proposals could introduce some exciting changes and make new incentives available in the near future.

The state of Washington is considering a new program designed to lower the cost of EV leasing for low-income residents. Additional programs could make training for EV charging station installers more accessible, and promising results from the city of Tacoma could result in more cities adopting EV charging stations mounted to light poles.

Utility Incentives for Electrification in Washington

Utilities are playing an important part in supporting Washington’s electrification through incentives and involvement in the National Electric Highway Coalition.

It’s also worth noting that Washington has strict requirements for utilities under the Clean Energy Transformation Act. This measure requires utility providers to develop clean energy plans and go carbon-free by 2045.

The programs available vary from one utility provider to another. For instance, Seattle City Light covers up to 100% of the cost of installing EV chargers at multifamily properties.

Tacoma residents can get a $400 bill credit for the installation of a Level 2 at-home charging station from Tacoma Public Utilities, while Tacoma Power commercial customers can receive $2,000 to $10,000 in funding for their EV charging project.

Clark Public Utilities is supporting electrification with $500 rebates on some EV chargers and rebates of up to $1,000 on the purchase of a used EV for low-income customers.

As a Snohomish Public Utility District customer, you can qualify for a $200 rebate to help cover the cost of your EV charging station.

Other Electrification Technology Incentives in Washington

EV adoption is not the only trend supporting a greener future. Additional programs available at the state or local levels are contributing to the Move Ahead Washington plan and fostering the adoption of other electrification technologies.

Electric heat pumps are a vital trend for reducing reliance on fossil fuels. Many Washington residents have access to rebates and other incentives that make switching to an electric heat pump more affordable. For instance, the city of Seattle offers rebates of up to $2,000 for switching to a cleaner heat source, while the city of Olympia offers educational programs and group discounts.

The state is offering additional programs similar to the Washington State EV tax credit on sales and use taxes. A similar tax incentive waives sales use taxes for solar equipment and battery storage used for solar arrays, contributing to making solar more affordable and accessible.

Installing At-Home EV Charging in Washington State with Qmerit

Washington’s ambitious plan to phase out ICE vehicle sales by 2030 has turned the state into an electrification leader. The Washington State EV tax credit, grants, and other programs are also playing an important role in encouraging EV adoption.

For Washington residents, tax exemptions at the time of purchase combined with rebates from utility providers make going electric more affordable than ever, and installing EV charging at home in Washington State can help you take advantage of low utility rates to make driving electric even more cost-effective.

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