Guide to Oregon’s Electric Vehicle Tax Credits

August 23, 2023

Calling all Oregon drivers! Have you ever thought about making the switch to an electric vehicle (EV)? Perhaps you’re intrigued by the environmental benefits or curious about technological innovations. Or maybe you’re just fed up with high gas prices.

Whatever the reason, now is a great time to consider going electric.

There’s a wealth of incentives and rebates available to help make the transition more affordable. This comprehensive guide covers everything you need to know to navigate the financial aspects of EV ownership, from federal and state tax credits to grants for home charging stations and extra costs you might encounter.

Is There a Tax Credit for Purchasing New EVs in Oregon?

Absolutely, Oregon does provide financial incentives for purchasing new electric vehicles (EVs). These incentives come under the Oregon Clean Vehicle Rebate and Charge Ahead Rebate programs. Depending on the battery capacity of the vehicle and your income level, you can earn rebates between $750 and $7,500.

While these rebates are not technically tax credits, they do provide substantial financial incentives, making them worth considering when you’re in the market for a new EV.

Does Oregon Offer Tax Credits for Buying Used EVs?

Indeed, Oregon is leading the way towards sustainability by providing the Charge Ahead Rebate for used electric vehicles. This program offers a rebate of up to $5,000 to low- to moderate-income service providers who are purchasing a used EV.

However, keep in mind that eligibility depends on income, and you’ll need to provide proof of income eligibility to qualify. So, if you’re planning on driving green with a used electric vehicle, Oregon’s incentives are here to support you!

Are There Credits Available in Oregon for Installing Home Charging Stations?

Oregon’s commitment to the adoption of electric vehicles continues to rise, and guess what? Many utilities across the state are finding innovative ways to support this green initiative. They’re offering practical advice on home chargers, expanding public charging networks, and presenting attractive rebate programs.

Local utilities are working in collaboration with the Oregon Public Utility Commission, Portland General Electric, and PacifiCorp to develop charging pods across their service territories.

Let’s delve into what some of these utilities offer.

1. Central Electric Co-op offers rebates from $50 for each registered electric vehicle to $450 for a BPA Qualified Level 2 charger in their territory.
2. Both Central Lincoln PUD and Columbia River PUD offer a $250 rebate for installing a Level 2 electric vehicle charger.
3. Emerald PUD offers a $100 reward for registering a plug-in battery or hybrid EV and a cash rebate of up to $300 for qualifying Wi-Fi Connected or EnergyStar Level 2 Chargers.
4. The Eugene Water & Electric Board offers a $500 Smart Charge Rebate for residential customers and a $1,000 rebate for commercial customers who purchase a Level 2 charger.
5. Midstate Electric Cooperative provides eligible EV owners with a $100 incentive, and both Northern Wasco County PUD and Tillamook PUD offer a $250 and $500 rebate, respectively, for the installation of Level 2 chargers.
6. Pacific Power and Portland General Electric offer grants and rebates for charging infrastructure and chargers for both residential and commercial customers.
7. Salem Electric offers a $500 incentive for residential members who install a ChargePoint Home Flex electric vehicle charger, and Springfield Utility Board gives a $500 rebate for a residential Level 2 EV charger installation.

Does Oregon Penalize EV Buyers?

Oregon is known for offering generous incentives for electric vehicle (EV) adoption. However, there’s an additional factor to keep in mind. Since EVs don’t contribute to the revenue from gas tax – which is crucial for maintaining our roads – the state requires EV buyers to pay a higher title and registration fee. In fact, the cost to register an electric vehicle in Oregon is more than double compared to a non-electric vehicle. This additional cost is simply the state’s way of ensuring that all drivers contribute fairly to the upkeep of our infrastructure.

What Other EV Incentives Can I Access in Oregon?

As a state in the Pacific Northwest, Oregon stands out as a beacon of electric vehicle (EV) adoption due to a variety of state incentives designed to encourage residents to switch to cleaner, more sustainable transportation. Thanks to programs led by the U.S. Department of Transportation, the Oregon Department of Transportation, and others, the state is actively fostering an EV-friendly environment that promotes infrastructure growth and reduces carbon emissions.

A key program is the Charge Ahead Rebate Program, which offers low- to medium-income residents a rebate of up to $5,000 when purchasing or leasing a new or used EV. This can be combined with the Clean Vehicle Rebate for a total of $7,500 in savings. For businesses and organizations, the Clean Vehicle Rebate Program offers rebates of up to $2,500 for new EVs and fuel cell electric vehicles (FCEVs) with a battery capacity greater than 10 kWh, and up to $1,500 for those with less than 10 kWh. Electric motorcycles are also eligible, with a potential rebate of $750.

Community-based initiatives like the Community Renewable Energy Grant Program are also operational. This program funds up to 100% of project costs for publicly accessible EV charging stations. Oregon also runs the Small-Scale Local Energy Loan Program for alternative fuel projects. Additionally, the state uses funds from the Volkswagen Environmental Mitigation Trust to offer Clean School Bus Grants, which provide financial assistance for replacing or retrofitting diesel-powered school buses. Finally, there are weight exemptions for vehicles equipped with idle reduction technology, and certain natural gas or electric vehicles are exempt from being equipped with a certified pollution control system. Oregon’s commitment to driving the future of transportation is evident through these comprehensive incentives.

For more details on these incentives, please visit The Alternative Fuels Data Center Page for Oregon

Oregon Clean Vehicle Rebate Program

Note: The Clean Vehicle Rebate Program is currently closed. Please check this page for updates and further details.

Should you be considering the switch to an electric vehicle, Oregon has some attractive incentives in place to help you make the leap. The Oregon Clean Vehicle Rebate Program offers cash back for individuals, businesses, non-profits, and even government agencies who opt to buy or lease electric vehicles.

If you wish to purchase a new electric vehicle, including plug-in hybrids or zero-emission motorcycles under $50,000, you’re in for a treat. The rebate amount you can receive depends on the battery capacity of your new vehicle, starting from $750 for motorcycles and going up to $2,500 for vehicles with batteries of 10 kWh or more.

For low- to moderate-income service providers, the Charge Ahead Rebate offers a $5,000 rebate for new or used eligible vehicles. To qualify, your income should be below 400% of the federal poverty guideline. Don’t forget to provide proof of your income eligibility to avail of this offer!

There’s also a combined Standard and Charge Ahead Rebate for low-income service providers that increase the rebate to $6,500 for batteries under 10 kWh and $7,500 for batteries of 10 kWh or more.

Remember to apply for these rebates within six months of your purchase or lease date. Individuals and dealers can easily apply online, while businesses, nonprofits, and government agencies should submit a completed application by mail.

Once your new electric vehicle is yours, it must be registered in Oregon and remain registered for at least two years. Businesses, nonprofits, and government agencies are limited to 10 rebates per calendar year, and must report their vehicle usage data to DEQ for three years.

As these rebates are subject to available program funding, it’s a good idea to check the Available Rebate Funding page before making your decision. Your purchase or lease should be from a verified vehicle dealer or original equipment manufacturer – sorry, no person-to-person sales are eligible.

For more information on the program, check out the Clean Vehicles Page on Oregon.gov

Federal Tax Credit

The Federal Inflation Reduction Act of August 2022 introduced significant changes to the federal tax credits for electric vehicles (EVs). The 200,000-vehicle cap per manufacturer was replaced with a new timeline. Now, the tax credit of up to $7,500 is available for a full decade, until December 2032. However, bear in mind that there are now income limits and price restrictions based on vehicle type. For instance, vans, sports utility vehicles, and pickup trucks must not exceed $80,000, and other vehicles must be priced under $55,000 to qualify for the credit.

The act also introduced a tax credit for used EVs, offering a credit of $4,000 or 30% of the vehicle price, whichever is lower. There are income thresholds in place, and the vehicle must not cost more than $25,000. The used vehicle must be sold by a dealership, and the tax credit cannot be used more than once per vehicle. Furthermore, the act reinstated the home EV charging station incentive, offering a tax credit that covers 30% of hardware and installation costs.

Another critical aspect of the new vehicle tax credit relates to supply sourcing, component processing, and workforce requirements. A vehicle needs to have its final assembly in North America to qualify, but further clarification on this requirement is expected in March. A bill currently under consideration, the Affordable Electric Vehicles for America Act, proposes a phased approach to the battery sourcing and manufacturing conditions. Stay tuned for updates on these evolving incentives for EV owners.

ODOT’s Community Charging Rebates Program

The Oregon Department of Transportation (ODOT) has introduced its Community Charging Rebates Program, as part of a $100 million commitment to increase the deployment of EV charging infrastructure across the state over the next five years. The program offers up to $7 million to help with installing Level 2 charging stations, especially in public parking areas and multi-family housing units. The rebates range from $4,250 to $5,500 per Level 2 charging port, covering up to 75% of eligible costs. The first funding round is slated to launch in June 2023.

In an effort to promote equity, 70% of the funds are reserved for projects in disadvantaged and rural communities. The program also encourages combining these rebates with other federal, state, or local incentives to further reduce the cost of charging equipment purchase and installation. Funding will be distributed on a first-come, first-served basis within two categories: priority and non-priority communities, with a minimum of 70% of funding invested in rural and disadvantaged communities. ODOT will update the available funding in each category on The ODOT Page for the Community Charging Rebate Program website regularly.

Utility Rebates

There’s a wealth of rebates available for electric vehicle (EV) owners in Oregon, helping make the switch to greener transportation more affordable. For instance, Pacific Power customers can receive up to $1,500 for home charging equipment. Business owners can access rebates of up to $1,000 per port, and multi-family properties can get up to $4,500 per port.

Portland General Electric (PGE) offers a number of rebates as well. Residential account holders who own or lease an EV or plug-in hybrid can get a Standard Level 2 Charger Rebate of up to $500, or up to $1,000 if they meet particular income qualifications. To qualify for these rebates, you must purchase and install a new charger and join the PGE Smart Charging Program.

PGE also offers help if your new Level 2 charger requires an upgrade to your electric panel. If you purchased your Level 2 charger after Nov. 16, 2022, and realized you needed to replace your panel, PGE offers a rebate of up to $1,000, or up to $5,000 if you meet certain income qualifications. This rebate can be applied for at the same time as the Level 2 Charger rebate, making it easier to transition to EV charging at home.

Wrap Up

Finally, if you’ve installed a qualifying EV charger prior to its addition to the qualified products list, you may be eligible for a $50 Bring Your Own Charger Rebate. Just like the other incentives, this rebate requires you to join the PGE Smart Charging Program. With all these initiatives, there’s never been a better time to consider switching to an electric vehicle in Oregon.

While transitioning to an EV does involve some additional considerations, the long-term savings in fuel and maintenance, coupled with the environmental benefits, make it a worthwhile investment. Remember, every journey towards a greener future starts with a single step. So, why not let that step be a drive in an electric vehicle?

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