EV incentives in Pennsylvania are available through the state government and local utilities.
Jump to insightPennsylvania doesn’t currently offer any state-level incentives for the purchase and installation of residential charging equipment.
Jump to insightCars that are subject to the annual EV road use fee are exempt from the Pennsylvania Alternative Fuels Tax.
Jump to insightCurrent EV incentives in Pennsylvania
Financial incentives typically include direct financial benefits aimed at lowering the cost of purchasing or leasing an electric vehicle. In Pennsylvania, these come in the form of rebates.
Alternative Fuel Vehicle Rebate Program
The state’s Alternative Fuel Vehicle Rebate program is open to low- and moderate-income Pennsylvania residents only. This financial incentive program offers residents a $3,000 rebate for the purchase of a battery electric EV; $1,500 for a plug-in hybrid car or truck; or $500 for any other alternative fuel vehicle. Applicants who meet low-income requirements are eligible for an additional $1,000.
The Alternative Fuel Vehicle Program offers a rebate of up to $4,000 when you buy a new or used EV.
Rebate amounts are the same for both new and used electric vehicles. (Note that preowned EVs must have had only one previous owner.) Vehicles must be purchased from a registered dealer and have a final purchase price of $45,000 or less. Your rebate eligibility depends on your family size and household income.
To apply for this program, complete the eGrants electronic application submission process within six months from the date of vehicle purchase. Rebates are issued on a first-come, first-served basis and end when funding has been depleted. At the time of publishing, only about 100 rebates are still available, but a new funding cycle is expected to begin later in 2026.
More EV incentives in Pennsylvania*
| Name | Source | Benefit |
|---|---|---|
| Alternative Fuel Vehicle Rebate | State government | Up to $4,000 |
| Driver Rebate | PECO | $50 |
| EV Bonus Cash Rebate | Duquesne Light Company | $50 |
Federal EV tax credit
The federal EV tax credit applied to the purchase of qualifying electric vehicles. Taxpayers could receive a credit of up to $7,000 for new EVs and up to $4,000 for used EVs. This program ended on Sept. 30, 2025.
EV charging equipment incentives in Pennsylvania
Unlike purchase rebates, charging equipment incentives focus on making it more feasible for drivers to install and maintain electric vehicle charging infrastructure. In many states, these benefits include rebates for the installation of home or public EV charging stations — as well as property tax exemptions — though incentives are limited in Pennsylvania.
For charging equipment incentives, Pennsylvanians previously had access to the federal Alternative Fuel Vehicle Refueling Property Tax Credit. Unfortunately, this program ended on June 30, 2026.
Pennsylvanians looking to reduce the cost of installing and using EV charging equipment can get some help from local governments and utility companies. PECO offers a time-of-use lower rate if you charge your vehicle during off-peak times. This benefit is available to customers in PECO’s southeastern Pennsylvania service area.
Similarly, the PennPower time-of-use program provides reduced off-peak and super off-peak rates for smart-metered residential and small commercial customers in western Pennsylvania. Duquesne Light Company’s time-of-use program serves customers in the southwestern portion of the state.
If you’re a Philadelphia resident, you may also qualify for simplified permitting when installing Level-2 EV charging equipment. This means getting a permit through the EZ Permit system rather than obtaining separate electrical and building permits.
These local government and utility incentives are less robust than in some states, which may dissuade some drivers from switching to electric cars.
| Name | Source | Benefit |
|---|---|---|
| Time-of-use pricing | PECO | Reduced electricity cost |
| Time-of-use rate program | PennPower | Reduced electricity cost |
| Time-of-use supply rate | Duquesne Light Company | Reduced electricity cost |
| EZ Permit | City of Philadelphia | Simplified permitting |
How much can EV incentives save you in Pennsylvania?
We compiled some examples of potential savings in Pennsylvania based on a new Tesla Model Y and a used Chevy Bolt EV. Here’s how financial incentives in Pennsylvania may impact the overall cost of these cars:
Example savings
| 2026 Tesla Model Y | 2022 Chevy Bolt EV | |
|---|---|---|
| Estimated vehicle purchase price | $50,000 | $19,500 |
| Alternative Fuel Vehicle Rebate | -$3,000 | -$3,000 |
| Driver rebate through local utility company, if applicable | -$50 | -$50 |
| Cost after incentives | $46,950 | $16,450 |
Utility bill savings and charging equipment rebates can stack with Pennsylvania's rebate. Manufacturer rebates and lease or APR deals available through EV dealerships can also help lower the total cost of ownership.
It’s important to note that some of these savings may be offset by Pennsylvania’s Road User Charge program for EV and hybrid drivers. Since EV drivers pay little to no gas tax to support the overall cost of highway and bridge maintenance, this program requires them to pay an annual fee of $250 for EVs or $63 for hybrids. The Road User Charge program replaces Pennsylvania’s previous Alternative Fuels Tax.
FAQ
Does Pennsylvania have rebates for electric vehicles?
Yes, Pennsylvania has rebates for EV owners and people with plug-in hybrid electric vehicles. See the tables above for more details.
Does Pennsylvania have tax credits for installing solar panels?
No, Pennsylvania does not currently have a state-level solar tax credit.
Do extended warranties cover electric vehicles?
Some extended warranty providers don’t adequately cover electric vehicles. That means they either refuse to cover EVs in the first place or don't cover the components that make them unique, like their traction batteries and drive units.
That being said, many extended warranty companies are starting to offer full EV coverage, and new companies specializing in coverage for EVs may be worth considering.
Article sources
ConsumerAffairs writers primarily rely on government data, industry experts and original research from other reputable publications to inform their work. Specific sources for this article include:
- Commonwealth of Pennsylvania, “Alternative Fuel Vehicle Rebates for Consumers.” Accessed July 4, 2026.
- DSIRE, “Programs.” Accessed July 4, 2026.
- PECO Energy Company, “Electric Vehicles (EVs).” Accessed July 4, 2026.
- Duquesne Light Company, “EV Bonus Cash.” Accessed July 4, 2026.
- Internal Revenue Service, “Working Families Tax Cuts.” Accessed July 4, 2026.
- U.S. Department of Energy, “Federal Tax Credits for New Plug-in Electric and Fuel Cell Electric Vehicles Acquired from January 1, 2023, through September 30, 2025.” Accessed July 4, 2026.
- U.S. Department of Energy, “Federal Tax Credits for Pre-owned Plug-in Electric and Fuel Cell Vehicles.” Accessed June 23, 2025.
- IRS, “Alternative Fuel Vehicle Refueling Property Credit.” Accessed July 4, 2026.
- U.S. Department of Energy, “Expired, Repealed, and Archived Incentives and Laws.” Accessed July 4, 2026.
- PECO Energy Company, “Time-Of-Use Pricing.” Accessed July 4, 2026.
- PennPower, “Electric Vehicle Offers & Information.” Accessed July 4, 2026.
- Duquesne Light Company, “Time-of-Use Supply Rate — Default Service.”
- City of Philadelphia, “EZ Permit Standard: Electrical Vehicle Charger (EVC) Stations.” Accessed July 4, 2026.
- Commonwealth of Pennsylvania, “Road User Charge for Electric and Plug-In Hybrid Vehicles.” Accessed July 4, 2026.
