New York State Incentives: Electric Vehicles and Charging Stations

Michael Tobias
Author : Michael Tobias
May 3, 2022
4 Minutes Read
  
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    KEY TAKEAWAYS

    - The Alternative Fuels and EV Recharging Property Credit gives back 50% of charging station costs as a tax deduction, up to $5,000 per station.

    - NY residents also have access to the federal plug-in vehicle tax credit, which ranges from $2,500 to $7,500 depending on the manufacturer and specifications.

    - You may qualify for a Volkswagen settlement grant when replacing certain types of diesel vehicles with electrical versions.

    - NYSERDA manages several grant and incentive programs in the state, including the $2,000 Drive Clean Rebate for electric vehicles.

    - There are also EV incentive programs from specific utility companies, and you may qualify if your property is located in their service territory.

    New York state is characterized by its leadership and energy efficiency and climate change mitigation policies, and this also applies for the adoption of electric vehicles. To stimulate the use of this technology, the state offers many incentive programs for EVs and their charging infrastructure.


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    There are many types of incentive programs, but most of them take the form of grants, rebates, tax credits and tax exemptions. This reduces the ownership cost of green technologies, motivating more individuals and corporations to use them. Here we will review the main incentive programs available for electric vehicles and chargers in NY state.

    Alternative Fuels and Electric Vehicle Recharging Property Credit

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    The Alternative Fuels and Electric Vehicle Recharging Property Credit is available for businesses who install EV charging infrastructure, and it applies for Level-2 and DC fast chargers. When installing these technologies, businesses can claim a tax deduction of $5,000 or 50% of charging station costs, whichever is less. This incentive has been available since January 2013, and there are two important conditions:

    • The EV charger must be installed in a NY state property.
    • At least 50% of EV charging operations must correspond to business activity carried on within NY state.

    If your EV charger qualifies for any grants or incentives, you must deduct those benefits first and calculate the tax credit based on net costs. The incentive is also available for alternative refueling systems that dispense fuels where at least 85% of the volume is natural gas, liquefied natural gas, liquefied petroleum gas, or hydrogen.

    Plug-in Electric Vehicle Tax Credit

    The plug-in electric vehicle tax credit is a federal incentive, and not a NY state incentive strictly speaking. However, it also counts because it can be combined with local programs. This program was created in January 2010, and it offers incentives for qualifying all-electric vehicles or plug-in hybrid vehicles. In general, the vehicle must meet the following conditions:

    • Gross vehicle weight rating of no more than 14,000 pounds.
    • Having an electric motor drawing current from a battery with at least 4 kWh of capacity.
    • The vehicle must be capable of being recharged by an external source.

    You can check the list of qualifying vehicles at FuelEconomy.gov, and the tax credit amount available in each case. The minimum incentive amount is $2,500, and you get an additional $417 per kilowatt-hour of battery capacity over 4 kWh, up to a maximum incentive of $7,500. Once the incentive has been used for 200,000 vehicles from the same manufacturer, it enters a phase-out period where it is gradually decreased to 50%, 25% and 0%.

    NY Grant and Rebate Programs for EVs and Charging Infrastructure

    ev chargers-1

    New York also has several programs that provide direct funding for the purchase of electric vehicles and their charging systems. Some of these programs are statewide, while others are limited to certain regions. Here is a summary of the main grants and rebates currently available in NY state.

    VW Funding for Diesel Replacement and EVSE Projects: This program offers grants for the replacement of diesel vehicles, which are funded from the Volkswagen settlement. The list of eligible vehicle types includes:

    • Local freight and port drayage trucks
    • School, shuttle and transit buses
    • Freight switchers
    • Ferries/tugs
    • Local freight trucks
    • Airport ground support equipment
    • Forklifts and port cargo handling equipment
    • Light duty zero emission vehicle supply equipment (EVSE)

    You can visit the NY State Department of Environmental Conservation website for additional details about eligible vehicles and funding available.

    NYSERDA Programs: The NY State Energy Research and Development Authority often offers grant and rebate programs, but these are constantly changing and funding is often limited. You can check their website to read about current opportunities. The NYSERDA Drive Clean Rebate program offers you $2,000 at the point of sale when purchasing or leasing an electric vehicle. The program currently covers more than 60 vehicle models, and it can be combined with the federal tax credit.

    New York also has EV incentive programs that are managed by specific utility companies, and you may be eligible if you’re one of their customers. These include:

    Unlike tax credits, which are claimed from expenses you already assumed, grants and rebates represent direct funding that is subtracted from your upfront costs. When you can combine both types of incentives, the net cost of your project can be drastically reduced. NY Engineers can help you qualify for various incentive programs and low-interest financing opportunities.

    Tags EV Charger | EV | Electric Vehicle | EV charging station | Level-2 EV Charger | DC Fast Charger

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