⚡ Tennessee EV Tax Credits: A Complete Guide for 2025
The popularity of electric vehicles is surging across the U.S., but when it comes to state-specific incentives, not all states are created equal. If you’re a Tennessee resident looking to buy an EV, you may be wondering about your savings opportunities. While Tennessee EV tax credits at the state level are limited, there are still multiple ways to reduce the cost of your EV investment.
🚫 Are There State-Level Tennessee EV Tax Credits?
As of 2025, Tennessee does not offer a state-level EV purchase tax credit or rebate. Because the state has no personal income tax, it lacks the tax infrastructure required to provide a traditional income-based EV credit.
However, EV buyers in Tennessee can still take advantage of several money-saving programs through:
- Federal EV tax credits
- Utility-based charger rebates
- Public charging infrastructure incentives
✅ Federal EV Tax Credits Available in Tennessee
🚫The Federal EV Tax Credits expire on September 30, 2025
Even without Tennessee EV tax credits at the state level, residents are eligible for up to $7,500 in federal EV tax credits through the Clean Vehicle Credit (IRC 30D) for qualifying new electric vehicles. This includes:
- $3,750 for meeting battery critical mineral sourcing requirements
- $3,750 for battery assembly and component requirements
Used EV buyers may also qualify for a credit up to $4,000 through the Previously Owned Clean Vehicle Credit (IRC 25E).
🔎 Tip: Use the IRS’s official EV Eligibility Tool to see which vehicles qualify.
🔌 Utility Rebates and Charging Incentives in Tennessee
While Tennessee EV tax credits don’t exist in the traditional sense, local utilities help bridge the gap with valuable rebates:
⚙️ Level 2 Home Charger Rebates
| Utility Provider | Incentive | Notes |
|---|---|---|
| Knoxville Utilities Board (KUB) | Up to $400 rebate | Residential Level 2 charger installation |
| Middle Tennessee Electric (MTE) | $50 EV Ready credit | Toward purchase of home charging equipment |
| Memphis Light, Gas & Water (MLGW) | Up to $2,000 | For commercial charging station installs |
| Chattanooga EPB | $50 rebate | For Level 2 EV chargers |
Many of these programs are limited and first-come, first-served—be sure to contact your utility for the most current offers.
💡 Bonus Tip: Use a licensed local electrician to ensure eligibility and code compliance. Many installers offer free estimates.
🛣️ Tennessee’s Fast Charging Expansion: Public EV Infrastructure
In partnership with the Tennessee Valley Authority (TVA) and the Tennessee Department of Environment and Conservation (TDEC), the Fast Charge TN Network is deploying EV fast chargers every 50 miles along major highways.
- Eligible businesses and developers can receive up to 80% reimbursement on charger installation costs.
- This program supports both Level 3 DC Fast Chargers and public-access charging stations.
Additionally, Tennessee is tapping into the NEVI (National Electric Vehicle Infrastructure) federal funds under the Bipartisan Infrastructure Law, meaning more public chargers, faster commutes, and higher EV adoption statewide.
💸 Summary: How to Maximize EV Savings in Tennessee
| Incentive | Details |
|---|---|
| State EV Tax Credit | ❌ None available in 2025 |
| Federal Tax Credit | ✅ Up to $7,500 for new, $4,000 for used |
| Utility Rebates | ✅ Up to $400+ for home chargers |
| Fast Charge TN Network | ✅ 80% cost support for public chargers |
| NEVI Program | ✅ Supports fast-charging corridors across TN |
Final Thoughts: Tennessee EV Tax Credits and Your Road Ahead
While Tennessee EV tax credits may not be available in the traditional sense, you can still unlock thousands of dollars in savings through federal credits and local utility programs. Combine that with lower maintenance and fuel costs, and switching to an EV in Tennessee just makes sense.
