Electric vehicle sales are at an all-time high in the United States – and with available rebates and incentives, many EVs are cheaper than the average new car.

Since January 1, 2023, plug-in electric and fuel-cell vehicles have qualified for a federal income tax credit of up to $7,500, if the cars and their batteries are mostly produced in the US. (Leased EVs can qualify for the credit even if they’re not manufactured here.) This tax credit, part of the Inflation Reduction Act, is valid through 2032.

Massachusetts residents may also qualify for state rebates of $3,500 on all-electric or fuel-cell vehicles, regardless of where the car is made. This summer, some important changes are taking place in the Massachusetts program:

• Plug-in hybrids will no longer qualify for rebates as of July 1, 2023.
• Used electric cars will qualify for a new rebate.
• Low-income residents who meet certain income qualifications can receive an additional $1,500 rebate.
• Rebates will come directly off the purchase price at the point of sale at certain dealerships.

The Green Energy Consumers alliance has a helpful summary of federal and state EV rebates and incentives here.