✅ No Arizona EV Tax Credits – But Federal Credits Apply
Arizona EV Tax Credits are not offer a state-level EV purchase at this time. As of 2025, there are no direct state incentives for buying an electric vehicle in Arizona — you must rely on federal programs instead.
🏛️ Federal EV Tax Credits (through September 30, 2025)
Arizona residents can claim the federal Clean Vehicle Credit (IRC §30D):
- Up to $7,500 for a qualifying new EV
- Up to $4,000 for a qualifying used EV purchased from a dealer
➡️ But: All qualifying vehicles must be purchased and delivered by September 30, 2025
Key eligibility factors include:
- Income limits: up to $300K (married filing jointly) for new EVs, up to $150K for used
- Price caps: $80K MSRP for most new EVs, $55K for sedans; $25K max resale price on used
- Battery & sourcing rules: Must meet North America “final assembly,” critical minerals, and battery component thresholds (60% in 2025)
You can either claim the credit on your tax return using IRS Form 8936, or transfer the credit to the dealer at purchase for an immediate discount if you meet all eligibility requirements.
Arizona-Specific EV Perks & Utility Rebates
🚗 Special Vehicle Privileges & Reduced Fees
Arizona offers these EV-specific exemptions:
- HOV lane access for EVs with special Alternative Fuel Vehicle (AFV) plates — valid only through September 20, 2025
- Exemption from annual emissions testing for EVs and hydrogen vehicles
- Reduced license tax: AFV owners pay $4 per $100 assessed value (minimum $5), with annual assessed value depreciating by 15% each year
⚡ EV Charger Rebates via Arizona Utilities
While Arizona EV Tax Credits or rebates for chargers do not exist, some utilities do offer some bonuses:
- Arizona Public Service (APS): Join the SmartCharge rate program for a $25 signup bonus + $5 monthly credit
- Salt River Project (SRP): Up to $250 rebate on Level 2 chargers (residential); commercial rebates up to $20K–25K per DC fast port
- Tucson Electric Power (TEP): Up to $500 rebate on home Level 2 chargers (75% of price), $100 for pre-wiring new homes; commercial programs up to $20.5K per DC fast port
📊 Summary Table
| Incentive Type | Offered By | Amount | Key Deadline / Notes |
|---|---|---|---|
| New EV Tax Credit (up to $7,500) | Federal (IRS §30D) | Up to $7,500 | Purchase and delivery by Sept 30, 2025 |
| Used EV Tax Credit (up to $4,000) | Federal (IRS §25E) | Up to $4,000 | Price ≤ $25K, first transfer only |
| Residential EV Charger Tax Credit (up to $1K) | Federal (IRS §30C) | Up to $1,000 | Claim credit via return; install by June 30, 2026 |
| HOV Lane Access | State of Arizona | Priority lane access | Requires AFV plate; valid until Sept 20, 2025 |
| Emissions Test Exemption | State of Arizona | Given automatically | Always valid for EVs |
| Reduced Vehicle License Tax | State of Arizona | Lower assessed value charges | Depreciates 15% annually; minimum $5 |
| Utility Charger Rebates | APS, SRP, TEP | $25–$500 (residential); More for business | Varies by utility, see utility-specific terms |
🏁 Final Notes
- The federal EV and charger tax credits are set to expire in fall 2025, so time is of the essence.
- There are no Arizona EV Tax Credits—but utility-level charger rebates do still exist.
- If you’re an Arizonan planning to buy an EV or install charging equipment in 2025–2026, act quickly to lock in the federal incentives and utility rebates while they remain available.
