Pennsylvania EV incentives, tax credits and rebates
What you need to know about state and federal electric vehicle incentives in the Keystone State
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Pennsylvania offers a range of incentives to encourage the adoption of electric vehicles (EVs). These incentives include tax credits, rebates and other benefits designed to make purchasing and owning an electric vehicle more affordable. Unlike many states, however, Pennsylvania doesn’t have financial incentives for EV charging infrastructure. Instead, you can get up to a $1,000 tax credit through the federal program.
Read on to learn about the financial incentives you may qualify for if you're considering buying an electric vehicle in Pennsylvania.
EV incentives in Pennsylvania are available through the federal and state governments and local utilities.
Jump to insightThe federal Plug-In Electric Drive Vehicle Tax Credit offers up to a $7,500 tax credit for the purchase of an EV.
Jump to insightPennsylvania doesn’t offer any state-level incentives for the purchase and installation of charging equipment.
Jump to insightA Pennsylvania resident may save around $9,550 through state and federal incentives when purchasing a new Tesla Model Y.
Jump to insightCurrent EV incentives in Pennsylvania
Vehicle incentives typically include direct financial benefits aimed at reducing the cost of purchasing or leasing an electric vehicle. In Pennsylvania, these come in the form of rebates.
Charging equipment incentives, on the other hand, 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 charging stations — as well as property tax exemptions — though incentives are limited in Pennsylvania.
Pennsylvania's Alternative Fuel Vehicle Rebate Program offers up to a $3,000 rebate for the purchase of new and used electric vehicles. For charging equipment incentives, Pennsylvanians must rely on the federal Alternative Fuel Vehicle Refueling Property Tax Credit and a small rebate from utility providers. Still, the combination of state and federal incentives can help lower the initial investment required to go electric.
Electric vehicle purchase incentives in Pennsylvania
| Name | Source | Benefit |
|---|---|---|
| Plug-In Electric Drive Vehicle Tax Credit | Federal government | Up to a $7,500 tax credit |
| Previously-Owned Clean Vehicle Tax Credit | Federal government | Up to a $4,000 tax credit |
| Alternative Fuel Vehicle Rebate program | State government | Up to $3,000 rebate |
| PECO Energy Company - Driver Rebate program | Utility provider | $50 |
| Duquesne Light Company - EV Bonus Cash program | Utility provider | $50 |
If you live in Pennsylvania, you may qualify for a range of federal and statewide financial incentives aimed at reducing the cost of EV ownership. The federal EV tax credit applies if you purchase a vehicle for personal use and its manufacturer’s suggested retail price doesn’t exceed $80,000 for vans, SUVs and pickup trucks or $55,000 for other vehicles.
To qualify for the federal program, the vehicle also must weigh up to 14,000 pounds, have a battery capacity of at least 7 kilowatt-hours and have undergone final assembly in North America. Additionally, your modified adjusted gross income must be within set limits.
In Pennsylvania, you may also qualify for the state’s Alternative Fuel Vehicle Rebate program. This financial incentive program offers residents up to a $2,000 rebate for the purchase of an EV, with an additional $1,000 available to applicants who meet low-income requirements. Your eligibility and rebate amount depends on your family size and household income, though rebate amounts are the same for new and pre-owned vehicles.
As in many other states, top Pennsylvania utility providers provide additional opportunities for savings. PECO Energy Company’s EVsmart Program and the Duquesne Light Company EV Bonus Cash program both offer customers $50 for every EV they buy or lease. PECO also offers a time-of-use lower rate if you charge your vehicle during off-peak times. These state government incentives are less robust than those available in some states, which may dissuade some drivers from switching to electric vehicles.
» WHAT ARE: Tax credits
EV charging equipment incentives in Pennsylvania
| Name | Source | Benefit |
|---|---|---|
| Alternative Fuel Vehicle Refueling Property Credit | Federal government | Up to a $1,000 tax credit |
| EZ Permit | City of Philadelphia | Simplified permitting |
Pennsylvania doesn’t offer any financial incentives for the installation of residential EV chargers. Instead, you’ll have to rely on the federal Alternative Fuel Vehicle Refueling Property Credit, which offers up to $1,000 in tax credits per unit if you install qualified vehicle refueling and recharging equipment at your home or business.
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.
How much can EV incentives save you in Pennsylvania?
Because eligibility for EV incentives varies, we can’t tell you exactly how much you’ll save by purchasing an electric vehicle. Instead, 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
| 2024 Tesla Model Y | 2022 Chevy Bolt EV | Home charger installation | |
|---|---|---|---|
| Estimated price | $50,000 | $20,000 | $1,500 |
| Federal tax credit | -$7,500 | -$4,000 | -$450 |
| Alternative Fuel Vehicle Rebate program | -$2,000 | -$2,000 | |
| PECO Energy Company — Driver Rebate program | -$50 | -$50 | |
| Cost after incentives | $40,450 | $13,950 | $1,050 |
FAQ
Does Pennsylvania have rebates for electric vehicles?
Yes, Pennsylvania has rebates for electric vehicle owners. 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. However, you can qualify for federal savings through the Plug-In Electric Drive Vehicle Tax Credit and the Previously-Owned Clean Vehicle Tax Credit.
Do extended warranties cover electric vehicles?
No, most extended warranty providers don’t adequately cover electric vehicles. That means they either refuse to cover EVs in the first place or refuse to cover the components that make them unique, like their traction batteries and drive units.
That being said, some extended warranty companies are starting to offer full EV coverage, and new companies specializing in coverage for EVs may be worth considering.
