Between the United States federal government, state, and local governments; power companies and utilities; and air pollution control districts, there are hundreds of incentives for fleet owners to switch from internal combustion engine vehicles to electric vehicles (EVs). EV fleets offer benefits such as reduced fuel and maintenance costs, helping you achieve your sustainability targets, and even helping your business partners up and down your supply chain achieve their sustainability goals by reducing their Scope 3 greenhouse gas emissions.
But while these rebates and incentives can help lower the total cost of electrifying your fleet, the program landscape can be confusing. Here’s what you should know about where and how to look for fleet EV charging incentives.
Types of fleet incentives
Incentives come in different forms, but they are all meant to encourage businesses to invest in activities like electrifying their commercial fleet of light, medium, or heavy-duty vehicles.
You can find incentives such as:
- Tax credits – These incentives lessen the amount of taxes that must be paid to the government for specific purchases.
- Rebates – Incentives that return cash to you if you purchase a specified item.
- Grants – Lump sums of money for specific purposes that you do not have to repay.
Government agencies at all levels provide incentives for buying EVs and/or installing electric vehicle infrastructure. In addition, some power utilities and air pollution control districts also have incentives in place for businesses.
Where to find fleet electrification incentives
Businesses can check with their local and state governments for EV related funding and incentive opportunities. For initial research, the Blink Commercial Incentives tool will help you identify funding opportunities. All you need to do is enter your Zip code and Blink charger, and the tool will show you available incentives for the region and type of charger you’ve selected.
Similarly, the Alternative Fuels Data Center has tools for searching federal laws and incentives for EVs, as well as state laws and incentives pertaining to EVs. They also maintain a list of the most recent incentives so you can keep up to date on what funding is available in your state.
Statewide EV fleet incentives
All 50 states offer laws and incentives in place to help fleet owners transition their fleets to electric vehicles.
California leads the way for state-specific alternative fuel laws and incentives with 183 at the time of this writing (149 when filtered specifically for EVs and plug-in hybrid electric vehicles (PHEVs). Washington, with 69 laws and incentives; Colorado (which has designated Blink Charging as its official EVSE supplier for state government agencies), with 67; New York, which has 63 laws and incentives, and Massachusetts, with 59, round out the top five states for EV incentives.
Where is Blink a verified supplier?
The Chugach Electric Association in Alaska offers Commercial Electric Vehicle Charging Station Rebates in the amounts of $5,000 per direct current fast charger EV charging station (up to $10,000 per location) and up to $1,000 per Level 2 EV charging station; up to $2,000 per location.
Maryland provides grants through its Clean Fuels Incentive Program (CFIP), which is administered by the Maryland Energy Administration. The CFIP provides grants to fleets for the retrofit or purchase of new Alternative Fuel Vehicles (AFV). Grant award amounts vary and may cover up to 100% of the incremental AFV cost. A maximum grant of $5,000 per vehicle can be awarded for Class 1-2 EVs, $80,000 for Class 3-7 EVs, and $150,000 for Class 8 EVs.
Utah offers rebates through the Utah Department of Environmental Quality for up to 50% of the cost to purchase and install both Level 2 charging stations and DCFCs. Utah-based businesses and non-profit organizations are eligible for a maximum rebate of $75,000 each.
These are just a handful of examples of the hundreds of incentives offered by individual states, power companies and other entities that have a vested interest in electrifying fleet vehicles. Learn more about states that have verified Blink as a state vendor.
Federal Funding and Resources
The federal government provides incentives in the way of tax breaks for businesses for the purchase of EVs and EVSE, as well as fleet specific resources.
The US Environmental Protection Agency has gathered resources for heavy duty fleet owners on their SmartWay Heavy Duty Electrification Resources page.
Here, heavy duty fleet owners can find:
- Funding information.
- Total Cost of Ownership Calculators to help calculate how much you can save by going electric.
- Technology and market readiness resources.
- Information on how charging infrastructure affects the electricity grid.
- Research and other resources.
Commercial Clean Vehicle tax credit
The federal US Commercial Clean Vehicle tax credit, which can be claimed by businesses and tax-exempt organizations, is worth up to:
- $7,500 for qualified vehicles with gross vehicle weight ratings of under 14,000 lbs.
- $40,000 for all other vehicles.
It equals the lesser of:
- 30% of your basis in the vehicle (total cost after taxes and registration).
- The incremental cost of the vehicle (excess of purchase price versus a comparable ICE vehicle).
The Internal Revenue Service administers this commercial EV tax credit.
Alternative Fuel Infrastructure Tax Credit
Businesses may also be eligible for an Alternative Fuel Infrastructure Tax Credit of 30% of the cost of installation of EV charging infrastructure up to $100,000.
To be eligible, businesses must be located in one of three census tracts:
- The census tract is not an urban area.
- The population census tract must have a poverty rate of at least 20%.
- Metropolitan and non-metropolitan area census tracts where the median family income is less than 80% of the state median family income level.
The initial federal EV infrastructure tax credit will provide a per-station base credit of 6% up to $100,000, up to 30% for businesses that meet prevailing wage and apprenticeship requirements.
Incentives for specific fleet types
Often, there are funding opportunities available for specific types of fleets, like California’s Hybrid and Zero-Emission Truck and Bus Voucher Incentive Project (HVIP) Public Bus Set-Aside Program. This program, which is funded by the California Air Resources Board and the California Energy Commission, offers grants for the purchase of new zero emission school buses to replace fossil fuel-powered buses.
The Federal Aviation Administration provides the Airport Zero Emissions Vehicle (ZEV) and Infrastructure Pilot Program, which can be used to electrify fleets of airport vehicles.
In addition, the Environmental Protection Agency offers the Clean School Bus Program which will distribute $5 billion over five years for replacing existing school buses with zero-emission and low-emission buses. A new round of rebate funding has now opened, and school districts and tribes now have until January 31, 2024 to apply for rebates. More details on the Clean School Bus Rebate can be found here.
Whether you manage a public or private fleet, there are tax breaks, grants, rebates, and other incentives available to help reduce the cost of electrification. Blink is here to help you select the right charging station for your needs and incentive guidelines. Ready to get started? Click here to learn more about fleet EV charging with Blink.