Pennsylvania EV incentives, tax credits and rebates
Explore federal and state electric vehicle incentives in 2025
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Several grants, rebate programs and tax cuts encourage Pennsylvania residents to adopt electric vehicles (EVs) and lower overall emissions. 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 a credit of up to $7,500 for the purchase of an EV.
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 registration fee are now 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 Alternative Fuel Vehicle Program offers a rebate of up to $3,000 when you buy a new or used EV.
You may 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, plus an extra $1,000 for applicants who meet low-income requirements. The program ended June 30, 2025, but as of publishing there are plans to renew it for another program year.
Rebate amounts are the same for both new and used electric vehicles. Your rebate amount depends on your family size and household income. Because eligibility requirements for EV and plug-in hybrid car incentives vary, we included a sample cost savings table below.
More EV 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 | State government | Up to $3,000 rebate |
| Driver Rebate | PECO Energy Company | $50 |
| EV Bonus Cash Rebate | Duquesne Light Company | $50 |
Charging equipment incentives in Pennsylvania
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.
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.
Federal EV tax credit
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.
EV charging equipment incentives in Pennsylvania
PECO offers a time-of-use lower rate if you charge your vehicle during off-peak times. These state and local government incentives are less robust than those available in some states, which may dissuade some drivers from switching to electric cars.
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.
| 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 |
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
| 2024 Tesla Model Y | 2022 Chevy Bolt EV | Home charger installation | |
|---|---|---|---|
| Estimated vehicle purchase price | $50,000 | $20,000 | $1,500 |
| Federal tax credit | -$7,500 | -$4,000 | -$450 |
| Alternative Fuel Vehicle Rebate | -$2,000 | -$2,000 | N/A |
| PECO Energy Company — Driver Rebate | -$50 | -$50 | N/A |
| Cost after incentives | $40,450 | $13,950 | $1,050 |
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. However, you can qualify for federal IRS 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.
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 June 23, 2025.
- City of Philadelphia, “EZ Permit Standard: Electrical Vehicle Charger (EVC) Stations.” Accessed June 23, 2025.
- U.S. Department of Energy, “Electric Vehicles.” Accessed June 23, 2025.
- U.S. Department of Energy, “Federal Tax Credits for New Plug-in Electric and Fuel Cell Electric Vehicles Purchased in 2023 or After.” Accessed June 23, 2025.
- PECO Energy Company, “Electric Vehicles (EVs).” Accessed June 23, 2025.
- U.S. Department of Energy, “Federal Tax Credits for Pre-owned Plug-in Electric and Fuel Cell Vehicles.” Accessed June 23, 2025.
- Duquesne Light Company, “EV Bonus Cash program.” Accessed June 23, 2025.
- DSIRE, “Programs.” Accessed June 23, 2025.
