The state generates electricity from various sources. (Photo: The San Diego Union-Tribune)
Alabama does not provide electric vehicle tax credits to purchasers or lessees.
The state generates electricity from various sources, with natural gas accounting for approximately 40%, nuclear power accounting for 32%, and coal accounting for 19%, with hydroelectric and biomass also contributing.
The Alabama Department of Economic and Community Affairs (ADECA) is one of the state’s few EV-focused programs, offering grants for installing public light-duty EV charging stations along Interstate 22. Grants are part of Volkswagen’s legal settlement for selling diesel-powered vehicles that did not meet federal emissions standards.
Is there an electric vehicle tax credit in Alabama for purchasing new electric vehicles?
No, Alabama provides no tax credits, rebates, or other incentives to purchasers of new electric vehicles or plug-in hybrid vehicles.
Is there an electric vehicle tax credit in Alabama for purchasing used EVs?
No, Alabama does not provide tax breaks, rebates, or other incentives to buyers of used electric or plug-in hybrid vehicles.
Is there an electric vehicle tax credit in Alabama for installing home charging stations?
No, Alabama does not provide subsidies for purchasing or installing home charging stations.
Alabama Power, which serves two-thirds of the state with electricity, provides a night-charging discount to residential customers who own or lease an EV.
Is there a tax credit for installing solar panels in Alabama?
No, Alabama does not provide credits for installing solar panels, though the federal government does offer a 30% tax credit.
The Tennessee Valley Authority (TVA), which serves about 17 percent of Alabama’s customers, is the only electric utility that offers a $1,000 rebate for installing solar panels.
Is it illegal in Alabama to buy an electric vehicle?
Yes, Alabama charges electric car owners an additional $200 per year in addition to standard registration fees. Hybrid vehicle purchasers must pay an additional $100. EV fees will increase by $3 beginning July 1, 2023, and every fourth year after that.
What Are Other EV Incentives Available in Alabama?
Those purchasing an EV in Alabama may be eligible for a $7,500 Federal Electric Car Tax Credit; however, as of this writing, it is limited to EVs (and plug-in hybrids) built in North America and is subject to price and family income thresholds. Used EVs priced up to $25,000 will be eligible for a $4,000 federal tax credit beginning in 2023.
