Federal tax credit

Save up to $7,500 when purchasing qualified new electric vehicles or up to $4,000 on qualified pre-owned EVs in the form of a reduction to your income tax bill. Restrictions around vehicle price, buyer income level, and battery and vehicle manufacturing apply.
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Washington state tax exemption

Save up to $975 when purchasing qualified new EVs under $45,000 or up to $1,040 on qualified pre-owned EVs priced under $30,000 in the form of a sales tax exemption at the point of sale.
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Incentives when purchasing select new EV models

A note on leased vehicles

The restrictions around the federal tax credit don’t apply when leasing a vehicle, which means the dealership is free to pass along a full $7,500 credit on any model. Meanwhile, a Washington state tax exemption up to $1,040 is available when leasing a new EV under $45,000.

Knowing you’ll have enough charge to get to your destination is a real concern when making the switch to an electric vehicle. However, it’s likely most every EV on the market will be able to handle your daily driving needs on a single charge. In 2023, the average range for a new EV under $50,000 was over 256 miles per charge. Plus, with the majority of EV charging done at home, you can have a full charge ready to go every morning. For longer trips, available charging solutions – including at workplaces and public spaces – are increasing.

Batteries are a hot topic when it comes to electric vehicles. A few things you’re likely wondering:

• Replacing an EV battery can be expensive. However, you’re unlikely to have to pay to replace it. Most EV batteries are under warranty for eight to 10 years and 100,000 to 150,000 miles.
• EV batteries are safe. There are strict standards for limiting chemical spillage from batteries and securing batteries during a crash.
• While electric vehicles are overall better for the environment than gas-powered cars, there is an environmental impact associated with battery production. Responsible sourcing of materials and beneficially reusing industrial wastes is perhaps currently the best solution available to the battery industry for reducing environmental footprint. There is hope that as battery technology progresses, these environmental impacts will be reduced.
• The reuse and recycling of electric vehicle batteries is a growing industry. Startup companies are partnering with automakers to recycle the materials that make up EV batteries, and the recently passed Inflation Reduction Act provides incentives for automakers using recycled materials in their batteries. Meanwhile, batteries that are no longer able to power an EV efficiently may still have around 80 percent of their original storage capacity. EV batteries are being reused for things like intermittent renewable energy generation and storage at EV charging sites.

Plug-in hybrid vehicles (PHEVs) can be more cost effective and better for the environment than gas-powered vehicles, however they don’t offer the full financial and environmental benefit as battery-only electric vehicles (BEVs). They’re also not as popular and have fewer models to choose from. As of August 2023, 78 percent of all EVs in Washington were BEVs, and 86 percent of all new EVs registered in Washington in 2022 were BEVs.

Through our Up & Go Electric programs, PSE is supporting our customers as they transition to an electric transportation future. One way we’re doing this is by making it easier for electric vehicle drivers to charge where they live, work and travel. Learn more about:

• Our network of public charging stations
• Up & Go Electric for Multifamily
• Up & Go Electric for Workplace
• Up & Go Electric for Fleet

• Charging an EV
• Electric Vehicle Guide
• EV FAQs
• Up & Go Electric newsletter