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Discover commercial incentives and rebates for electric vehicles and charging equipment, including state and federal programs designed to help your business drive cleaner, reduce costs, and invest in a more sustainable future.
Delaware’s Clean Vehicle Rebate Program is administered by DNREC and incentivizes the purchase or lease of new battery electric or plug-in hybrid vehicles for residents and businesses, and the purchase of used models for residents. This cash rebate, not a tax credit, supports cleaner transportation by reducing greenhouse gases and improving air quality. A minimum 36-month lease is required. Apply within 90 days of purchase. See driveelectricdelaware.org for details, eligibility, and vehicle lists. Past rebate data is on the Delaware Open Data Portal.
Current Rebate Amounts (Effective May 1, 2025): New vehicle rebates are based on the May 1, 2025 base MSRP, and used vehicle rebates on the Kelley Blue Book Fair Purchase Price at that time. These amounts are fixed until the program is reevaluated in 2026.
Type of Vehicle/Vehicle Technology | Rebate |
New Battery Electric Vehicles with a base MSRP below $40,000 | $2,500 |
New Battery Electric Vehicles with a base MSRP between $40,000 and $50,000 | $1,500 |
New Plug-in Hybrid Vehicles with a base MSRP below $50,000 | $1,000 |
Used Battery Electric Vehicle with a fair market purchase price of $40,000 or less | $2,500 |
Used Plug-in Hybrid Vehicles with a fair market purchase price $40,000 or less | $1,000 |
As an Individual:
Through a Participating Dealer:
About Taxes:
This rebate may be taxable income by the IRS and the Delaware Department of Revenue. It is your sole responsibility to consult a professional regarding tax implications.
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If you purchased a new all-electric, plug-in hybrid, or fuel cell electric vehicle in 2023 or later, you may be eligible for a federal tax credit of up to $7,500. Eligibility depends on factors such as the vehicle’s MSRP, final assembly location, battery and critical mineral sourcing, and your modified adjusted gross income (AGI).
Pre-owned electric vehicles may qualify for a credit of up to $4,000, provided they meet federal requirements.
Key Requirement (Effective January 1, 2024):
Clean Vehicle Tax Credits must now be processed at the time of sale. Be sure your dealer submits the required “time-of-sale” report to the IRS and confirms your eligibility before finalizing the purchase. Details are available in IRS Publication 5900.
Additional Incentives:
State and local programs may offer additional rebates or tax credits—check your local incentives for details.
Note: This applies to the Clean Vehicle Credit for individuals and businesses. For Commercial Clean Vehicle Credit information, visit the IRS website.
This program rebates Level 2 EV charging stations purchased and installed after May 1, 2025. Refer to DNREC’s Guidebook to Installing Electric Vehicle Charging Stations for EV information and installation guidance.
These programs support Delaware’s transportation innovation goals by reducing greenhouse gases and improving air quality, complementing the Delaware Clean Vehicle Rebate Program.
Eligible Charging Station Types:
Funding: $1 million is available on a first-come, first-served basis:
Note: Rebates are not offered for single-family home charging stations under this program. Individuals seeking those incentives should visit Energize Delaware.
Rebate recipients are responsible for all upfront expenses, including installation and utility upgrades.
Application Process:
About Taxes:
This rebate may be considered taxable income by the IRS and the Delaware Department of Revenue. Consult a professional for tax advice.