EV Financing: Federal Programs & Grants for EV Transition

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In August 2023, we presented on this very topic at Police Fleet Expo in New Orleans. We all know that there are federal and state mandates requiring government fleets to eliminate gasoline and diesel vehicles and to move to 100% ZEV between 2027 and 2035.

The federal fleet has a mandate to be at 100% Light-Duty zero-emission vehicles by 2027 and 100% Medium- and Heavy-Duty zero-emission vehicles by 2035. Many states have set goals of their government fleets also being 100% ZEV between 2030 and 2035. Several states have also declared that all retail sales must be at 100% ZEV by 2035.

The cost of transitioning to electric vehicles can be very expensive. At the onset, there are several factors to consider:

  1. The higher cost of electric vehicles compared to gasoline and diesel vehicles
  2. The cost of installing charging stations
  3. The cost of installing the electric infrastructure to power the charging stations

To offset some of these costs, the federal government has provided tax credits. The credits vary, depending on battery size. All federal tax credits start with a $2,500 amount for any electric vehicle, including PHEVs (Plug-in Hybrid Vehicle) with a battery pack capable of more than 5kWh of capacity. There is an additional $417 for each kWh over 4kWh, not to exceed $7,500 in total for light-duty vehicles. The federal tax credit can reach as high as $40,000 for the larger class 3, class 4, and class 5 vehicles.

In addition, many states have offered a tax credit for new or preowned EV and PHEV. Some states are offering exemptions from certain taxes or processes rather than offering a tax credit or rebate. Finally, many of the electric companies throughout the United States are offering credits toward your electric bill or discounted rates for those charging during off-peak hours.

The federal government and some states provide rebates for the purchase of certain electric vehicles or accessories, such as Level 2 Chargers. The federal tax credit can be 30% of the cost of purchase and installation. Examples of a few state programs are as follows:

  • CA – There are several different programs, based on where the vehicles are housed. See the link below for state incentives.
  • CO – There are grants that cover up to 80% of purchase and installation for a total grant not to exceed $50,000.
  • CT – There are tax credits that cover up to 80% of chargers and up to 100% of infrastructure.
  • IL – Up to 80% of the cost.
  • MD – There are grants of up to 40% of the investment, not to exceed $4,000 per address.
  • NJ – Up to 50% of the infrastructure and $1,500 toward level 2 chargers.
  • NY – Like CA, there are several programs available, some as high as 100% grants.

The recently passed Inflation Reduction Act has 80 different federal incentives. The incentives at the federal, state, and local levels are constantly changing. As a fleet management company, we assist you with determining which incentives, grants, rebates, and tax credits will work best.

Here are some of the links that we follow:

We have partnered with companies throughout the United States that provide charging stations and infrastructure. In addition to assisting with electric vehicles, charging stations, and infrastructure, we also assist with all fleet management services. We work with customers to determine whether a closed-end lease, an open-end lease, a municipal $1.00 finance lease, or a straight finance lease works best. In many cases, it is a combination of these options that works best for most agencies.

We work closely with all manufacturers to find you the lowest costs and the best vehicles for your needs. The supply of fleet vehicles has decreased. The OEM incentives have significantly decreased or disappeared. The budgeted dollar amounts are not enough to meet the rising costs of vehicles. In these times where demand is considerably greater than supply and OEM build schedules severely shortened, our nationwide dealer network is an asset. We have been finding vehicles for our customers by reaching out to our contacts throughout the OEM and dealer network. Our goal every day is to help fleets lower their fleet costs, including maintenance costs, fuel costs, acquisition costs, and total cost of ownership. Regardless of need, we are here to help with any public fleet vehicles—marked, unmarked, admin, light-duty, medium-duty, and heavy-duty vehicles.

We also have a national cooperative purchasing contract for Fleet Management with OMNIA Partners. This contract allows agencies from both the public and non-profit sectors. These include but are not limited to School Districts (including K-12, Charter schools and Private K-12), Higher Education (including Universities, Community Colleges, Private Colleges, and Technical/Vocational Schools), Cities, Counties, and any Local Government, State Agencies, Healthcare Organizations, Church/Religious, Nonprofit Corporations throughout the United States.

For more information, or to find out how we can assist you, we can be reached at the following:

Joanne Cornier

Bob Crowe

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