Florida Electric Car Tax Credit: EVs & The Sunshine State
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If you’re looking to hop into the all-electric movement, there’s no better time than now. According to the U.S. Bureau of Labor Statistics, electric vehicles or EVs now account for 4.6% of total car sales in 2021, a drastic increase from 0.2% in 2011. Furthermore, industry experts predict that EV adoption rates will only multiply from now.
Even the government is incentivizing consumers to get into electric vehicles in an effort to curb the effects of climate change. Recently, the Biden administration passed the ambitious Inflation Reduction Act of 2022, which is designed to enhance the tax credits for electric vehicle purchases.
If you’re a Sunshine State resident looking to buy a new or used EV or PHEV, you’re likely wondering about the Florida electric car tax credit. Lucky for you, we happen to have the information you need. Keep reading to learn more about the Florida electric car tax credit situation.
What is an Electric Car Tax Credit?
Before we discuss the topic of Florida’s electric car tax credit, let’s first define what an electric vehicle tax credit is. An electric vehicle tax credit or EV credit is a non-refundable credit offered to buyers of qualifying new or used EVs or PHEVs. The tax credit may range from $2,500 to $7,500. Your eligibility depends on several factors, like the weight of the vehicle, the number of EVs sold, and whether you own the car.
However, the Biden administration just passed the Inflation Reduction Act, or IRA, that made significant changes to the tax credit and will start taking effect in 2023 and end in 2032. The changes that will be included are new manufacturing requirements, more eligible car types, and income requirements.
The new credit will enable taxpayers to receive a credit of up to $7,500 for new electric vehicles or up to $4,000 for buying a used EV. There are also planned requirements based on the battery and critical minerals inside the EVs.
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Does Florida Have Electric Car Tax Credit?
Disclaimer: Before we start, this article is for informational purposes only. After all, we fancy ourselves as car experts, not tax professionals or financial advisers. Before investing in a significant purchase like an EV, we recommend discussing it with your financial and legal advisors first.
Unfortunately, as of this writing, the state of Florida doesn’t offer tax credits for EV buyers or any other incentives for buying an electric car. Although this might change soon, you’re pretty much out of luck if you’re a Floridian hoping for a sizable tax credit. But all is not lost. Qualified Floridians may be eligible for bill credits and rebates from programs offered by local utility companies.
Florida Utility Companies That Offer Incentives for EV Buyers
The following are the utility companies that offer financial incentives to EV buyers and owners:
- Duke Energy: This utility company has an Off-Peak Charging Credit program that provides a monthly bill credit of $10 for charging their EVs during off-peak hours. One main eligibility requirement is that the EV owner must charge using a Level 2 charger.
- Kissimmee Utility Authority: The Kissimmee Utility Authority offers a total of $200 for EV owners under certain conditions. The first $100 rebate is delivered through a purchase of an EV, but only one rebate per vehicle. Meanwhile, the other $100 is offered to EV customers that will install a Level 2 Charger at their homes.
- JEA Drive Electric: The JEA offers a 15% rebate and up to $300 per account to cover the cost of wiring upgrades required for EV charging. Eligible work should be related to installing a Level 2 EV charger or a 240 V outlet for EV charging outlets. In addition, the utility company also offers a $7 bill credit by charging their EV between 10 pm and 7 am (off-peak hours) with a Level 2 charger.
- Orlando Utilities Commission (OUC): The OUC offers a $50 gift card after you test drive an EV from an OUC-approved electrified dealership. Furthermore, OUC customers are also eligible for a $200 rebate after purchasing or leasing an electric car.
That should be it! Unfortunately, Florida has yet to catch up in incentivizing consumers to purchase electrified cars, trucks, and SUVs. Of course, that may change in the future, but as of this writing, there’s no available tax credit from the state.
However, on a federal level, Florida EV buyers can still rely on the Federal EV Tax Credit of up to $7,500. But there are various eligibility requirements such as date of purchase, income limits, battery type, and source of raw materials. Check out this guide from the IRS to learn more about the Federal EV Tax Credit.
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Frequently Asked Questions:
Q: Does Florida provide tax credits for buyers of new or used EVs?
A: As of this writing, the state of Florida doesn’t offer any form of tax credit or incentive to purchasers of new or used electrified vehicles. However, EV owners in Florida can check with their local utility companies if rebates or bill credits are available.
Q: Which local utility companies offer incentives for EV customers?
A: Below is the list of local utility companies that will give EV owners some financial incentives:
- ##### Duke Energy
- ##### Kissimmee Utility Authority
- ##### JEA Drive Electric
- ##### Orlando Utilities Commission (OUC)
Incentive requirements may vary from simply purchasing an EV or PHEV model or installing a Level 2 charger in their homes. If you’re in Florida, call your local utility company and check if they have programs and rebates for EV buyers.
Q: Does Florida offer a tax credit for installing EV home charging stations?
A: No. Florida offers no credit or incentive for EV buyers who have installed home charging stations. However, several utility companies have incentives for EV owners that install Level 2 chargers in their homes. For example, the Kissimmee Utility Authority offers $100 rebates to EV owners who have installed Level 2 home chargers. Meanwhile, JEA Drive Electric offers a 30% rebate or up to $300 per account if the work involves service and panel upgrades for a Level 2 charger.
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