EV and EV Charging Equipment Incentives

Hawaii Incentives

Hawaii Electric Bike and Moped Rebate Program

This rebate applies to electric bikes with a maximum speed of 28 mph or electric mopeds purchased at a retail store on or after July 1, 2022. The rebate amount is 20% of the retail price or $500 (whichever is lower). Other eligibility requirements (per the Department of Transportation website):

  • Are 18 years of age or older who are eligible for certain low-income assistance programs,

  • Do not own a motor vehicle with four or more wheels, or

  • Are currently enrolled in a school, college, or university.

For the latest information, visit the Hawaii Department of Transportation page on the program: Hawaii Electric Bike and Moped Rebate (hidot.hawaii.gov/hawaii-electric-bike-and-moped-rebate)..

Sign up for Smart Charge Hawaii!

The Smart Charge Hawaii program, accessed via the ev.energy app, allows eligible electric vehicle drivers to track home charging costs and earn rewards for sharing EV charging data to improve power grid reliability across the islands. Sign up to earn your $75 enrollment incentive, plus an additional $75 completion bonus after 12 months on the program.

Ready to get started? Visit the Smart Charge Hawaii website to check vehicle compatibility, download the app, and earn your first reward!

Commercial - Hawaii Energy EV Charging Station Rebate Program

This rebate program is available for commercial, fleet, workplace, and multi-unit dwelling properties across the state. The rebate is available on a first-come, first-served basis. Program highlights:

  • Available for new or retrofit Level 2 and DCFC equipment. Single port Level 2 chargers qualify.

  • No cap for the number of Level 2 rebates per site. Up to two DCFC rebates per site.

  • Rebate amounts:

  • Level 2 Charger rebates of up to $4,500; DCFC rebates of up to $35,000.

For the details, including instructions on how to apply, visit Hawaii Energy (hawaiienergy.com/for-business/rebates/electric-vehicle-charging-stations).

Commercial - Hawaiian Electric EV J and P Rate Pilot

This program provides special time-of-use rate structures for commercial Level 2 and DCFCs. These rates allow hosts of commercial EV charging stations located at businesses, workplaces, condos, and apartments to avail of favorable energy rates and help mitigate high demand charges. This is available for properties on Oahu, Maui County, and Hawaii Island.

For the details, including instructions on how to apply, visit Hawaiian Electric EV P and J Rates (https://www.hawaiianelectric.com/products-and-services/electric-vehicles/electric-vehicle-rates-and-enrollment/commercial-facility).

Commercial - Diesel Replacement Rebate Program

The Diesel Replacement Rebate program provides rebates (45% of total cost) for replacing medium and heavy-duty diesel vehicles with new battery or fuel-cell electric vehicles and associated fueling equipment. (The diesel vehicle must be removed.)

This program is funded by the Volkswagen Environmental Mitigation Trust and the Diesel Emissions Reduction Act.

The rebate applies to the following vehicles: (in operation for 5 or more years):

  • School buses

  • Transit, shuttle, and tour buses

  • Medium- or heavy-duty trucks

  • Non-road Vehicles: Equipment at ports and airports, agricultural tractors

For the details, including instructions on how to apply, visit energy.hawaii.gov/what-we-do/financial-assistance-and-grants/diesel-replacement.

Federal Incentives

Electric Vehicle Tax Credit

Federal Tax Credits and Incentives have been dramatically changed as part of the Inflation Reduction Act of 2022. With this new law, the EV Tax Credit and EV Charger Credit program have been expanded to increase purchase incentives for electric vehicles. Highlights:

  • $7500 credit is available to EVs that have previously exceeded the 200,000 unit cap. For instance, Tesla and GM purchases qualify once again. The credit is split to account for the final assembly location and source of battery components and critical minerals. There are MSRP and Income caps.

  • Starting this year - a used EV tax credit of $4000 or up to 30% of the price will be available.

  • Starting in 2024 - point of sale credits will be available.

Wondering about which EV qualifies?

Electric Vehicle Association maintains a sheet that summarizes the latest EVs and mentions those that qualify for the incentives. The latest can be viewed here.

Source: Plug In America

Requirements

For the latest EV tax credit information, visit this Department of Energy webpage www.fueleconomy.gov/feg/tax2023.shtml.

Review the IRS list of manufacturers that meet the final assembly and MSRP requirements (or intend to be qualified) at www.irs.gov/credits-deductions/manufacturers-and-models-for-new-qualified-clean-vehicles-purchased-in-2023-or-after.

Medium-Heavy Vehicle Tax Credit

A tax credit of up to $40,000 is available to businesses and tax-exempt organizations for vehicles with a gross vehicle weight rating of 14,000 pounds or more.

Some highlights:

  • The vehicle must be used for business.

  • The vehicle must be a plug-in or fuel-cell electric.

  • Domestic battery manufacturing content requirements don’t apply

For more information, visit www.irs.gov/credits-deductions/commercial-clean-vehicle-credit.

Federal Tax Credits for EV Charging Stations

  • Residential - 30% up to $1000 per EV charger

  • Commercial - Up to $100,000 per EV charger. Requirement for the site to be in low-income or non-urban areas.

Details can be found at www.irs.gov/credits-deductions/alternative-fuel-vehicle-refueling-property-credit#amount

Photo courtesy of Roger Starnes Sr.

Rules are subject to change and applicability is situational, consult with your accountant or tax attorney for specifics.