Governor Jay Inslee congratulated Washingtonians on Thursday for reaching over 100,000 electric vehicles on the roads, getting closer to his goals of lowering emissions across the state.
The new milestone makes Washington the second-largest EV market share in the country according to Inslee.
But this electric vehicle goal also included some incentives to encourage citizens to make the switch from traditional gas-powered vehicles to electric.
For those still questioning if switching to electric is really worth it, they may be able to receive incentives up to $20,000 if they make the switch in the next few years.
Puget Sound Energy helps those in Washington estimate the possible incentives they could receive through the state and federal government by simply owning an electric vehicle.
Washington tax exemptions
Washington state offers tax exemption on the purchase of electric vehicles through July 31, 2025. Those with qualifying alternative fueled or electric vehicles can be exempt from both sales and use taxes, according to the Washington State Department of Revenue.
For qualifying cars purchased between now and July 31, 2025, Washingtonians could receive a sales or use tax exemption of up to $20,000 of the sales or lease price.
To see if your car qualifies, visit the Washington Department of Licensing for a complete list of tax exemption vehicles.
Federal tax credits
Federal tax credits range from $2,500 to $7,500 according to the IRS, but may be difficult to get. The tax credit is for the purchase of a new EV, but the credit amount depends on various factors such as the vehicle's battery capacity, or when the car was manufactured and purchased.
To learn if your EV is eligible for a federal tax credit, visit the IRS website for specific information.
Tax exemption for EV charging stations
Those purchasing a home charging station for their EV can also have a tax exemption through July 1, 2025, according to Washington State Legislature. According to this law, Washington sales and use taxes do not apply to the services and labor involved in purchasing and installing EV infrastructure including home charging stations and rapid charging stations.
