New York Drive Clean Rebate for Electric Vehicles

New York Electric Vehicle Tax Credits, Rebates and Incentives

The state of New York plans to phase out internal combustion engine (ICE) vehicle sales by 2035. In an effort to support EV adoption, several programs available at the state and utility levels are making EVs and EV charging more accessible to NY residents and businesses.

In this guide, we explore electric vehicle tax credits, rebates and incentives across The Empire State and how residents can benefit from New York’s available initiatives to support electrification.

New York Drive Clean Rebate for Electric Vehicles

If you’re in the market for a battery electric vehicle or a plug-in hybrid, you should know that over 60 models qualify for a New York state rebate of up to $2,000 through the NY Drive Clean program.

A participating dealership can offer you the rebate at the time of purchase or lease, and then you must register it in New York state. The amount of the rebate varies based on the vehicle’s MSRP and all-electric range.

In order to qualify for the full amount, you’ll have to purchase an EV with a range of 200 miles or more, or sign a 36 month lease. If the range falls between 40 and 199 miles, you’ll be eligible for a $1,000 rebate. For models with a shorter range or an MSRP that exceeds $42,000, the Drive Clean rebate is $500. For a detailed breakdown, you can find a qualifying models list here.

he NY EV rebate doesn’t cover used vehicles. Only new vehicle purchases or signed leases with terms of 36 months or more are eligible.

High Occupancy Vehicle (HOV) Lane Exemption

The New York State Department of Motor Vehicles allows eligible plug-in electric and plug-in hybrid electric vehicles to use the Long Island Expressway (LIE) HOV lanes, regardless of the number of occupants in the vehicle. Vehicles must display the Clean Pass vehicle sticker, and there is no fee to apply.

For more information, see the Clean Pass Stickers section on the NY Department of Motor Vehicle website.

Electric Vehicle Emissions Inspection Exemption

Vehicles powered exclusively by electricity are exempt from state motor vehicle emissions inspections. For more information, see the New York Vehicle Inspection Program website.

Federal Tax Credits For Electric Vehicles

In addition to the above state of New York incentives for EVs, car buyers may also qualify for federal tax credits like the clean vehicle tax credit of up to $7,500 for new vehicles, or the used clean vehicle tax credit for up to $4,000. Income restrictions as well as battery component and critical mineral restrictions may apply. Be sure to speak to a qualified CPA or tax professional to check your eligibility.

Zero Emission Vehicle Grants For New York Municipalities

The New York State Department of Environmental Conservation’s (NYSDEC) Municipal ZEV Program offers rebates to cities, towns, villages, counties, and New York City boroughs for the purchase or lease of eligible zero emission vehicles. Rebates of up to $7,500 are available, based on a vehicle’s all-electric range and gross vehicle weight rating. Municipalities may apply for multiple ZEV rebates, worth up to $375,000.

For more information, including eligibility requirements, see the NYSDEC Grants For Climate Action page.

New York EV Charger Rebates

In certain geographies across America, state entities and local utilities offer drivers rebates for purchasing and installing Level 2 EV chargers.

Unfortunately, homeowners in New York do not have access to any state or utility programs that provide access to an upfront rebate for home charging stations. However, you can take advantage of a 30% federal tax credit as well as join one of the time-of-use programs discussed below to save on EV charging electricity costs.

Charge Ready NY 2.0 EV Charger Rebate

The New York State Energy Research and Development Authority’s (NYSERDA) Charge Ready NY 2.0 program offers rebates to public, private and not-for-profit organizations that install Level 2 EV charging stations at workplaces, multi-unit dwellings (MUD’s) or public parking facilities. NYSERDA provides incentives on a per-port basis at varying amounts, based on location type and whether or not is it located within a Disadvantaged Community (DAC):

• $4,000 per charging port installed at a public facility (must be located within a DAC)
• $2,000 per charging port installed at a workplace or multi-unit dwelling location.

An additional incentive of $500 per port may be awarded for eligible charging equipment installed at a workplace or MUD location if located within a DAC.

For fleet owners, the Charge Ready 2.0 program includes a $1,000 rebate per port.