Introduction: Why Rhode Island EV Tax Credits Matter
If you live in the Ocean State and are considering making the switch to an electric vehicle, Rhode Island EV tax credits can significantly lower your cost. Between state rebate programs, federal incentives, and charger installation rebates, drivers can stack multiple offers for thousands in savings. In this guide, we’ll break down exactly how you can take advantage of these programs in 2025.
1. The DRIVE EV Rebate Program
The primary source of Rhode Island EV tax credits comes from the DRIVE EV program, administered by the Rhode Island Office of Energy Resources.
Standard Rebates:
- New battery electric or fuel cell EV (MSRP ≤ $60,000) – $1,500
- New plug-in hybrid EV (PHEV) – $1,000
- Used battery electric or fuel cell EV (≤ $40,000) – $1,000
- Used PHEV – $750
Low-Income Bonus (DRIVE⁺ Add-On):
- Extra $1,500 for new EV
- Extra $1,500 for used EV
- Extra $1,500 for new PHEV
- Extra $1,000 for used PHEV
That means qualifying buyers can get up to $3,000 back on a new EV or $2,500 on a used one—before federal incentives are applied.
Important: Apply within 120 days of purchase or lease to claim your rebate.
2. Federal EV Tax Credits for Rhode Island Drivers
🚨The Federal EV Tax Credits expire September 30, 2025
In addition to Rhode Island EV tax credits, you may qualify for the federal Clean Vehicle Credit:
- Up to $7,500 for eligible new EVs
- Up to $4,000 for eligible used EVs (must be at least 2 years old and sold by a dealer)
Requirements include:
- Income limits ($150,000 for single filers, $300,000 for joint)
- Vehicle MSRP caps ($55,000 for cars, $80,000 for SUVs/pickups)
- Final assembly in North America and battery component sourcing rules
3. Charger Rebates: PowerUp Rhode Island
Charging at home is more convenient—and PowerUp RI makes it cheaper.
Residential Rebate:
- 50% of the cost, up to $350 for a Level 2 charger
- Up to $700 if your electrical panel requires upgrades
- Income-qualified applicants can receive $500 or $1,000 maximums (up to 75% of total cost)
You can also claim the federal charger tax credit: 30% of hardware + installation, up to $1,000 (for homes in qualifying areas).
4. Business & Fleet Incentives
If you’re a small business, non-profit, or government agency in Rhode Island, DRIVE EV Fleet offers:
- $1,500 per new EV (MSRP ≤ $60,000)
- $1,000 per used EV (≤ $40,000)
- Extra $500 if your organization is in a high-asthma community
This stacks with the federal Commercial Clean Vehicle Credit (up to $7,500 per vehicle) and federal charging infrastructure credit (up to $100,000).
5. Stacking Rhode Island EV Tax Credits for Maximum Savings
Here’s how the numbers can add up:
| Purchase Type | State Rebate | Federal Credit | Charger Incentive | Total Savings |
|---|---|---|---|---|
| New EV (low-income) | $3,000 | $7,500 | $1,000 | $11,500 |
| Used EV | $1,000 | $4,000 | $350 | $5,350 |
| Fleet Purchase | $1,500 | $7,500 | varies | $9,000+ |
6. How to Apply
- State rebates: Apply through the DRIVE EV portal within 120 days of purchase.
- Federal tax credits: File IRS Form 8936 with your tax return.
- Charger rebates: Apply to PowerUp RI within 180 days of installation.
Conclusion: Don’t Leave Money on the Table
Rhode Island EV tax credits are some of the most generous in the Northeast, but funds are limited and deadlines are strict. Whether you’re buying new, used, or upgrading your home charging setup, acting now can mean thousands in savings. Combine these with federal credits and you could drive away in your new EV for far less than you think.
