Washington EV Tax Exemptions

Driving an alternative-fuel car, such as an EV and hybrid, has many perks ranging from better fuel efficiency to less car maintenance compared to a gasoline-powered model. When you buy one, you can even enjoy incentives, like the federal EV tax credit, but if you’re in Washington state, you may be eligible for more! Overall, there are various Washington EV tax exemptions that you may use to lower your taxable income. Find out the two main WA EV tax exemptions that you could be eligible for below! Feel free to contact us with any questions that you may have in Spokane Valley.

Alternative Fuel Vehicle (AFV) Retail Sales & Use Tax Exemption

When you buy or lease a new and used passenger vehicle, light-duty truck, or medium-duty passenger AFVs, you can be exempted from the state retail sales and use tax under this Washington state EV tax exemption. Crucial information for this exemption includes:

• Eligible AFVs include those powered by natural gas, propane, hydrogen, or electricity.
• If you go for a new vehicle, it may not be valued above $45,000 whereas if you go for a used model, it may not be valued above $30,000.
• The maximum eligible amount is $16,000 for all used vehicles regardless of the year it was purchased or leased.
• Keep in mind, the tax exemption may apply to all or a portion of the vehicle’s value.

For more information, see the U.S. Department of Energy’s reference.

EV Charging Stations, Batteries & Fuel Cells Sales & Use Tax Exemption

Another WA EV tax exemption that you may be eligible for is when you buy an electric vehicle battery or fuel cell or when you install a station for an electric vehicle battery, fuel cell, or hydrogen fueling. Here are some main details that you should know about:

• The sales tax exemption applies to purchases on and after July 28, 2019 while the use tax exemption applies to purchases on and after August 1, 2019.
• EV infrastructure covers structures, machinery, and equipment necessary and integral to support an electric vehicle. For example, battery charging stations, rapid charging stations, battery exchange stations, and renewable hydrogen production facilities would be included in this exemption.
• You can also get a leasehold excise tax exemption if you have leases to tenants of public lands for the purpose of installing, maintaining, and operating electric vehicle infrastructure. For the full details, refer to the EV infrastructure sales/use tax exemption and leasehold tax exemption on the Department of Revenue Washington State’s website.

Discover Electric & Hybrid Models for Sale at Camp Chevrolet

At Camp Chevrolet, we have new and used models that would be included in these Washington state tax exemptions, such as the new Chevy Bolt EV and Bolt EUV as well as the pre-owned hybrid cars. If you’re looking for a vehicle with high mpg ratings, be sure to check out our fuel-efficient vehicles that are powered by gas, electric, or both. We will be delighted to help you find the right model for your drives from Tri-Cities to Post Falls!