Kentucky EV Tax Credits in 2024

Kentucky is among the states that don’t offer many incentives for electric vehicle ownership or home charging. Residents of Kentucky who buy a new or used EV have fewer financial breaks than residents of some neighboring states, and may even pay more to own an EV than for a gas vehicle. Here’s what you need to know.

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.

No, Kentucky does not offer any tax credits, rebates or other incentives to buyers of new electric vehicles or plug-in hybrid vehicles.

No, Kentucky does not offer any tax credits, rebates or other incentives to buyers of used electric vehicles or plug-in hybrid vehicles.

Neither the state nor local power companies offer residential customers a rebate to purchase and install Level 2 home EV charging stations.

Kentucky does not offer tax credits, rebates or other incentives for the purchase and installation of solar panels. However, some Kentucky utility companies may offer a net metering program that allows solar-generating homeowners to earn credits for the excess power their systems produce.

Kentucky residents can also take advantage of a federal tax credit of 30 percent to have solar panels installed, which includes the cost of materials, labor and related fees, including necessary permits.

Yes, Kentucky charges electric car owners an annual supplemental license fee of $120 as a road use fee, while owners of hybrid vehicles and electric motorcycles pay $60. Both are in addition to the usual annual registration fee of up to $25.

Those purchasing or leasing an EV in Kentucky may qualify for the Federal Electric Car Tax Credit of up to $7,500 for new and some used vehicles. Residents of Kentucky who are interested in federal incentives should consult a tax professional if they have any questions or concerns about qualifications.