Massachusetts EV Tax Credits Guide

Massachusetts is one of the more forward-looking states when it comes to renewable energy, with user-friendly programs and incentives to encourage EV adoption for individuals as well as businesses.

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.

Yes. The Massachusetts Department of Energy Resources offers rebates of up to $3,500 for the purchase or lease of a new eligible zero-emission vehicle, and eligible low-income applicants may qualify for an additional $1,500 rebate. Applicants must apply within three months of the vehicle purchase and must keep the vehicle at least 36 months.

Yes. The Massachusetts Department of Energy Resources offers rebates of up to $3,500 for the purchase or lease of a pre-owned eligible zero-emission vehicle, and eligible low-income applicants may qualify for an additional $1,500 rebate. The purchase price of the pre-owned vehicle must be less than $40,000.

Customers of some electric utilities in Massachusetts may be eligible for incentives for home charging stations, such as rebates for installation or credits for charging during off-peak hours. Residents should check with their local utility for rebates, credits or time-of-use (TOU) rates.

Massachusetts has several different types of incentives for installing a new residential solar system. Massachusetts offers an income tax credit of 15 percent of the system cost up to a maximum of $1,000. The state also pays customers of certain solar utility companies a fixed rate for solar energy production, with incentives for low-income customers and for those who install batteries to store solar power. New residential solar equipment in Massachusetts is exempt from sales tax and residences are exempt from property tax increases based on the value of the solar system.

Massachusetts does not assess additional taxes or fees to register an electric vehicle.

Those who purchase an EV in Massachusetts may also qualify for the Federal Electric Car Tax Credit of up to $7,500. Massachusetts residents should also check with their local electric utilities for any additional credits or incentives. Electric vehicles are exempt from Massachusetts emissions inspection requirements.