Washington EV Tax Credits Guide

The state of Washington has long proven its reputation for being accepting and encouraging of alternative fuels and electric vehicle adoption. The state provides tax exemptions, rather than tax credits, for qualified EV purchases and infrastructure upgrades.

As incentive programs shift over time, it is crucial that you research the current incentives before you buy, or consult a tax specialist, to ensure you qualify for a rebate or tax credit. The information in this article was current as of its publication date.

Washington state offers tax credits in the form of tax exemptions for new and used clean/alternative fuel vehicles. Some plug-in hybrids qualify for the exemption, but the vehicle’s sale price or value cannot exceed $45,000, including delivery and other fees. That said, the tax exemption only covers a portion of the purchase price. As of August 2023, the state exempts up to $15,000 of the sales or lease price.

Washington offers tax exemptions for “anyone who purchases an electric vehicle battery or fuel cell, or installs an electric vehicle battery, fuel cell charging station, or hydrogen fueling stations.” Furthermore, some utility companies offer special time-of-use (TOU) rates for customers who agree to charge their EVs overnight during off-peak hours.

Taxpayers in Washington may be eligible to receive a sales tax exemption for qualifying solar energy systems. The state requires that the system be capable of generating at least 1 kW but no more than 100 kW of electricity. Installation must take place before December 31, 2029, and must be performed by an installer authorized by the state.

Washington state charges a $150 annual registration fee and a $75 transportation electrification fee in addition to standard registration and operation costs. There have been discussions about changing the fee to a per-kWh or similar structure, but updates have not yet been implemented.