Introduction
If you’re considering switching to an electric vehicle in the Aloha State, Hawaii EV tax credits can make the transition more affordable than ever. With Hawaii’s high fuel prices and strong commitment to renewable energy, the state offers financial incentives that lower the cost of buying, leasing, and charging an EV. In this guide, we’ll break down how these credits work, who qualifies, and how to maximize your savings.
Why Hawaii is Investing in EV Incentives
Hawaii has set an ambitious goal to achieve 100% renewable energy by 2045. Since transportation accounts for a large share of the state’s emissions, electric vehicles (EVs) are central to that mission. To encourage residents to make the switch, Hawaii provides financial perks on top of the federal EV tax credit.
Hawaii EV Tax Credits in 2025
While Hawaii does not currently offer a statewide purchase rebate like some mainland states, there are multiple Hawaii EV tax credits and incentives available through local programs, utility companies, and the federal government.
1. Federal EV Tax Credit (Up to $7,500) ***Expires September 30, 2025***
Hawaii residents can take advantage of the IRS Clean Vehicle Credit worth up to $7,500 for qualifying new EVs and up to $4,000 for certain used EVs. Requirements include:
- EV must meet final assembly and battery sourcing requirements.
- Income caps apply ($150,000 for individuals, $300,000 for joint filers).
2. Hawaii EV Tax Credits For Charging Equipment
While the statewide purchase rebate has expired, Hawaii still supports charging infrastructure through various local programs, including:
- Hawaiian Electric Company (HECO) rebates for installing Level 2 chargers in homes, condos, and workplaces.
- Rebates typically range from $500 to $5,000 depending on the type of charger and location.
3. Utility Bill Discounts for EV Owners
Many Hawaii utilities offer special time-of-use (TOU) rates for EV charging, allowing drivers to pay less for electricity during off-peak hours.
- HECO’s EV TOU Rate can save up to 40% on charging costs.
4. Free or Discounted Parking & HOV Lane Access
Hawaii EV drivers enjoy non-financial perks that can still save money and time, including:
- Free metered parking in some municipalities.
- Access to HOV lanes regardless of passenger count.
These benefits make EV commuting faster and more convenient—especially on Oahu’s busy roads.
How to Claim Hawaii EV Tax Credits
- Federal Credit – File IRS Form 8936 when submitting your annual tax return.
- Charging Rebates – Apply directly through your utility company’s EV program page.
- Parking & HOV Benefits – Register your EV with the Hawaii Department of Transportation for the proper decals.
Example Savings on a New EV in Hawaii
| Incentive Type | Potential Savings |
|---|---|
| Federal Clean Vehicle Credit | Up to $7,500 |
| HECO Charger Rebate | Up to $5,000 |
| Utility TOU Rate Savings | $300–$500/year |
| Parking & HOV Access | Time + $500/year |
By combining Hawaii EV tax credits with federal incentives, you could save over $12,000 in your first year of ownership.
Best EVs to Buy in Hawaii in 2025
To maximize your incentives, consider EVs that qualify for the full federal tax credit:
- Tesla Model Y
- Chevrolet Bolt EUV
- Ford F-150 Lightning
- Hyundai IONIQ 5
Final Thoughts
Hawaii’s shift toward clean transportation is accelerating, and Hawaii EV tax credits make going electric more affordable. Whether you’re looking to save on the purchase price, charging equipment, or ongoing operating costs, there’s never been a better time to switch to an EV in the islands.
