What are the types of hybrid and electric vehicles?

  • Hybrid Vehicles include:
    • Mild Hybrid Electric Vehicle (MHEV)
    • Full Hybrid Electric Vehicle (FHEV)
    • Plug-in Hybrid Electric Vehicle (PHEV).
  • All-Electric Vehicles include:
    • Battery Electric Vehicle (BEV)
    • Extended-Range Electric Vehicle (EREV).
  • One other type of electric vehicle is Fuel Cell Electric Vehicle (FCEV). 
What is an electric vehicle? 

All-Electric vehicles are powered entirely by an electric motor using energy stored in batteries. Produces no tailpipe emissions and must be recharged through an external power source. Requires charging of a vehicle from home charging stations or charging stations.

What is a hybrid vehicle?

There is variety between hybrid vehicles. MHEVs use electric assistance to improve efficiency but cannot run on electric power alone, while FHEVs can operate in electric-only mode for short distances. PHEVs combine electric and ICE capabilities, offering flexibility in energy sources. 

What is a plug-in hybrid vs other hybrid vehicles?

Both combine an internal combustion engine (ICE) with an electric motor. However, PHEVs can be plugged into an external power source to recharge the battery while other hybrids rely on regenerative braking and the ICE to recharge the battery. PHEVs have a significant electric-only range of 20-50 miles. PHEVs also potentially offer greater fuel savings and lower emissions. 

Are hybrid and electric vehicles tax deductible?

Both electric vehicles (BEVs and PHEVs) and, to a lesser extent, hybrid vehicles (HEVs) can be eligible for various federal, state, and local tax incentives and rebates. It’s important to research the specific incentives available in your area and consult with a tax professional to understand how these credits and rebates apply to your individual tax situation. Websites like The U.S. Department of Energy’s Alternative Fuels Data Center (AFDC) provides a comprehensive database of federal and state incentives for electric vehicles.

How do hybrid cars work?

Mild Hybrid Electric Vehicles (MHEVs) are a type of hybrid vehicle that incorporate both an internal combustion engine (ICE) and an electric motor. Unlike full hybrids, the electric motor in an MHEV cannot power the vehicle independently but instead assists the ICE to improve efficiency and performance. MHEV regenerates power from breaking. FHEVs can operate on electric power alone for short distances, providing significant fuel efficiency and reduced emissions. PHEV can be recharged by plugging into an external power source.This hybrid car can travel longer distances on electric power alone compared to FHEVs. The PHEV vehicles switch to hybrid mode once the battery is depleted.

Do you have to plug in a hybrid car?

PHEVs: Require plugging in to recharge the battery and offer a significant electric-only driving range. Ideal for drivers who want the flexibility of electric driving for short commutes and the assurance of a gasoline engine for longer trips.

HEVs: Do not require plugging in and rely on internal systems to recharge the battery. Suitable for drivers who want improved fuel efficiency without the need to manage charging.

Tax Credit for EVs

Do I Qualify?
Rental?

Buying or Leasing?

vehicle with a battery capacity of at least 5 kilowatt-hours (kWh).

BEVs?

PHEVs?

Tesla? 

GM’s?
NoYes
Yes with a base credit of 2500 An additional $417 is available for each kWh above 5 kWh.

Sometimes. Not all electric vehicles qualify, so it’s essential to check the specific make and model.

Sometimes. Not all electric vehicles qualify, so it’s essential to check the specific make and model.

No. They have surpassed the 200,000-vehicle threshold, so the federal tax credit for their vehicles has phased out.

No. They have surpassed the 200,000-vehicle threshold, so the federal tax credit for their vehicles has phased out.

Other qualification factors:

The availability and amount of the credit depend on the specific vehicle and the manufacturer. It’s essential to verify the current status of tax credits for the vehicle you are interested in and consult with a tax professional to understand how the credit will apply to your individual tax situation.

Phase-Out:

The tax credit begins to phase out for a manufacturer’s vehicles once it has sold 200,000 qualifying vehicles in the U.S. After the threshold is reached, the credit is reduced over a period of four quarters before it is completely phased out for that manufacturer. Not all electric vehicles qualify, so it’s essential to check the specific make and model.

Electric Vehicle FAQs

Why are some states offering more incentives than others?

Often the states that are most generous to EV buyers are states that support clean energy more broadly. But Glenn said it also comes down to air quality: Many states justify their EV rebates in terms of potential improvements to air quality from taking gas-powered vehicles off the road.

Colorado
– $7,500 off the purchase of a new electric vehicle under $35,000
– Cars between $35,000 and $80,000 can qualify for a smaller credit of $5,000.
– Rebates for installing Level 2 home charging stations.
Maine– $7,500 off a new EV purchase for residents who fall below certain income requirements
– Higher income can qualify for partial credit at $3,500
– The state also has an “any-income” rebate worth up to $2,000.
Massachusetts– $3,500 rebate for the purchase of a new or used EV
lesser rebates of $1,500 and – $1,000 are available when you trade in a gas-powered car for an EV (through a purchase or lease).
Maryland– $3,000 off the purchase of EVs that cost less than $50,000 (with strings attached)
– Offers 50% off the cost of a home charger installation, up to $700.
Delaware
Rebates are worth up to $2,500 based on vehicle make and model. 
New York 
Provides rebates of up to $2,000 for the purchase or lease of new qualifying electric cars.
New Jersey– Offers rebates of up to $5,000 for the purchase or lease of new electric vehicles.
– Zero-emission vehicles are exempt from state sales tax.
California– Offers rebates up to $7,000 for the purchase or lease of new, eligible zero-emission vehicles, including BEVs and PHEVs.
– Eligible electric vehicles can use HOV lanes with a Clean Air Vehicle decal.

Are hybrid and electric vehicles tax deductible?

Both electric vehicles (BEVs and PHEVs) and, to a lesser extent, hybrid vehicles (HEVs) can be eligible for various federal, state, and local tax incentives and rebates. It’s important to research the specific incentives available in your area and consult with a tax professional to understand how these credits and rebates apply to your individual tax situation. Websites like The U.S. Department of Energy’s Alternative Fuels Data Center (AFDC) provides a comprehensive database of federal and state incentives for electric vehicles.

Electric Vehicle FAQs

Savings depend on the type of vehicle you choose, your driving habits, local fuel and electricity prices, and the efficiency of the vehicle. On average, electric vehicles could save $1,390 per year on fuel costs. Plug-in-hybrids can result in $695 saved per year on fuel costs. By switching from a conventional gasoline vehicle to an HEV, you could save approximately $837 per year on fuel costs. 

Annual Mileage (M): Total miles driven per year.

Gasoline Price (Pg): Price of gasoline per gallon.

Electricity Price (Pe): Price of electricity per kilowatt-hour (kWh).

Gasoline Vehicle Fuel Efficiency (Eg): Miles per gallon (mpg) for the gasoline vehicle.

Electric Vehicle Efficiency (Eev): Miles per kWh for the electric vehicle.

Annual Fuel Cost for Gasoline Vehicle (C_g):

Cg=M/Eg×Pg

Annual Electricity Cost for Electric Vehicle (C_ev):

Cev=M/Eev×Pe

Saving with EV car: 

Se​v=Cg​−Ce​v

Electric Vehicle FAQs

Mild Hybrid Electric Vehicles (MHEVs) are a type of hybrid vehicle that incorporate both an internal combustion engine (ICE) and an electric motor. Unlike full hybrids, the electric motor in an MHEV cannot power the vehicle independently but instead assists the ICE to improve efficiency and performance. MHEV regenerates power from breaking. FHEVs can operate on electric power alone for short distances, providing significant fuel efficiency and reduced emissions. PHEV can be recharged by plugging into an external power source.This hybrid car can travel longer distances on electric power alone compared to FHEVs. The PHEV vehicles switch to hybrid mode once the battery is depleted.

Electric Vehicle FAQs

PHEVs: Require plugging in to recharge the battery and offer a significant electric-only driving range. Ideal for drivers who want the flexibility of electric driving for short commutes and the assurance of a gasoline engine for longer trips.

HEVs: Do not require plugging in and rely on internal systems to recharge the battery. Suitable for drivers who want improved fuel efficiency without the need to manage charging.