In addition to the same fees due for registration of internal combustion engine vehicles, there are additional fees on certain electric vehicles, plug-in hybrids, and hybrids:

Electric vehicles that use at least one method of external electricity and can travel at least 30 miles on battery power:
- $100 annual fee – First $1 million goes to the Motor Vehicle (MV) fund, after which the funds are split 70% – MV fund, 15% transportation improvement account, 15% rural arterial trust account; AND
- $50 annual fee – First $1 million goes to multimodal fund, after which the funds go to the MV fund.
Hybrid vehicles (including plug-in hybrids subject to the electric vehicle fees above):
- $75 fee – Goes to EV account until 2025, then to the MV fund.
- Plug-in hybrid vehicles may be required to pay all three fees.

State sales tax exemption and other incentive programs

EVs and plug-in hybrid vehicles are exempt from sales and use tax until July 31, 2025. DOL maintains a list of eligible vehicles on its website, dol.wa.gov. DOL will review and update the list as needed until the exemption expires. To qualify:

The vehicle must be:
- exclusively powered by a clean alternative fuel; or
- a plug-in hybrid vehicle that can travel at least 30 miles on battery power alone.

AND

Have a selling or lease price of $45,000 or less for new vehicles or $30,000 or less for used.

If the vehicle qualifies:

Date of purchase New vehicle exemption limit Used exemption

Aug. 1, 2021 – July 31, 2023 Up to $20,000 of the selling price Lesser of the sales

Aug. 1, 2023 – July 31, 2025 Up to $15,000 of the selling price price or $16,000.

The dealer reports the exempt sale by taking a “Sales and Leases of New/Used Clean Alternative Fuel Vehicles” deduction from retail sales tax, and must submit itemized information when filing the excise tax return for each vehicle for which a deduction is taken during the reporting period.

Federal tax credits and incentives

Internal Revenue Code Section 30D provides an income credit for Qualified Plug-in Electric Drive Motor Vehicles including passenger vehicles and light trucks. The credit was updated in 2022 as part of the Inflation Reduction Act, which:

Eliminates the tax credit cap for automakers who have hit 200,000 EVs sold, making GM, Toyota, and Tesla once again eligible.
NEW VEHICLES: Beginning January 1, 2023 and ending December 31, 2032, purchases may receive a potential tax credit of $7,500 ($3,750 if the vehicle meets certain minimum battery critical material sourcing qualifications + $3,750 if it meets battery components assembly location requirements).
- INCOME: The credit is only available if the purchaser’s Modified Adjusted Gross Income is below $300,000 for joint filers, $225,000 for head of household, or $150,000 for single filers.
- MSRP: Only vans, SUVs and pickups under $80,000 qualify. For any other vehicles (sedan, hatchbacks, etc.), the limit is $55,000.
- Customers can check if a vehicle qualifies at the IRS’s website: https://www.irs.gov/credits-deductions/manufacturers-and-models-for-new-qualified-clean-vehicles-purchased-in-2023-or-after
  - In March 2023, the IRS revised how it classifies vehicles potentially eligible for a Section 30D Clean Vehicle Credit. As a result, more new battery electric (BEV), plug-in hybrid electric (PHEV), and fuel cell electric vehicle (FCEV) models/trim levels are now considered “SUVs, vans, and pick-ups” for purposes of the credit’s $80,000 MSRP cap. All other BEV, PHEV, and FCEV make/models (e.g., sedans, coupes, station wagons, etc.) are subject to a $55,000 MSRP cap.
  - The revised vehicle classifications are based on those in fueleconomy.gov, and apply retroactively to January 1, 2023. A listing of which make/models fall under which MSRP cap is available here: www.fueleconomy.gov/feg/taxcenter.shtml.
  - The change means some BEVs, PHEVs, and FCEVs sold since 1/1/23 may now be potentially eligible for a Section 30D Credit that were not before. If you have purchased one of those vehicles, ask your selling dealer for a Section 30D Clean Vehicle Credit report form as necessary.
  - In April 2023, the IRS issued new guidance that shrank the number of vehicles that qualify for credit. Vehicles that qualify for the full $7,500 credit:
    - Cadillac Lyriq EV (2023-2024)
    - Chevrolet Blazer EV (2024)
    - Chevrolet Bolt EUV (2022-2023)
    - Chevrolet Bolt EV (2022-2023)
    - Chevrolet Equinox EV (2024)
    - Chevrolet Silverado EV (2024)
    - Chrysler Pacifica PHEV (2022-2023)
    - Ford F-150 Lightning, standard range (2022-2023)
    - Ford F-150 Lightning, extended range (2022-2023)
    - Lincoln Aviator Grand Touring PHEV (2022-2023)
    - Tesla Model 3, performance (2022-2023)
    - Tesla Model Y, all-wheel drive (2022-2023)
    - Tesla Model Y, long range (2022-2023)
    - Tesla Model Y, performance (2022-2023)
    - Volkswagen ID.4 (2023) * Added April 19
  - Vehicles that qualify for $3,750 credit:
    - Ford E-Transit (2022-2023)
    - Ford Mustang Mach-E, standard range (2022-2023)
    - Ford Mustang Mach-E, extended range (2022-2023)
    - Tesla Model 3, standard range rear-wheel drive (2022-2023)
    - Ford Escape PHEV (2022-2023)
    - Jeep Grand Cherokee PHEV 4xe (2022-2023)
    - Jeep Wrangler PHEV 4xe (2022-2023)
    - Lincoln Corsair Grand Touring PHEV (2022-2023)
  - The Department of Energy has a tool on gov that provides a table of all Section 30D qualifying vehicles. There are two search categories or, as the site refers to them, “Purchase Scenarios”: One for vehicles placed in service between Dec. 31, 2022, and April 17, 2023; and one for vehicles placed in service on or after April 18, 2023.
  - Consumers and dealers don’t need to know the specifics regarding battery and mineral content. In this context, the only relevant information for a consumer considering purchasing an EV is whether that vehicle qualifies for a tax credit.
  - Importantly, most EV make/models potentially qualify for an IRC Section 45W tax credit (the credit for vehicles used for business purposes) if sold to commercial customer-taxpayers. This includes leasing companies intending to lease the vehicle to commercial or noncommercial customers.
  - Please note, it is always important to check the Section 30D qualifying list and with your vehicle manufacturers as EV make/models may be added to or fall off the list as circumstances change.
- Beginning January 1, 2024, customers will have the option to transfer the credit to a qualifying dealer at time of sale to immediately apply the credit to the purchase of the vehicle. Until then, customers claim the credit on their annual income tax filing.
USED VEHICLES: A federal tax credit of $4,000 or 30% of the sales price of the vehicle – whichever is lower – for used qualifying vehicles (see image below). Used vehicles must be at least 2 model years earlier than the calendar year in which it is bought, and the sale price must be below $25,000. There is only a one-time application. If a credit was applied to a new vehicle, it is not eligible when the vehicle is resold as used.

Also, to be eligible for a Used EV Credit, a used EV may not have been sold after August 15, 2022 to a Qualified Buyer who was not the original owner. A Qualified Buyer is someone who:

Is an individual (not a business, etc.) who cannot be a deducted on someone else’s tax return;
Purchased the vehicle for use in the U.S. and not for resale; and
Has not claimed a Used EV Credit for a purchase made within the last 3 years.Note: This may be difficult to determine with certainty. A vehicle history report should show if a used EV was sold after 8/16/22 to an individual who took title in the United States in his or her name. But, determining whether that buyer was deductible on someone else’s taxes, or previously claimed a Used EV Credit, will be difficult at best. Only if a used EV was not sold after 8/16/22 or was sold since then but only to non-individuals (e.g., businesses), will it be reasonable to assume that it was not previously sold to a Qualified Buyer and may qualify for a Used EV Credit.

Finally the purchaser claiming the used vehicle credit must:

Be a Qualified Buyer (see above);
Have a Modified Adjusted Gross Income below $150,000 for married filing jointly or a surviving spouse, $112,500 for heads of households, $75,000 for all other tax filers;
Be purchasing a vehicle for under $25,000 from a licensed dealer;
Receive a copy of the required Section 25E report form from the selling dealer.

Additional requirements may apply – all purchasers should consider their own tax situation and consult with their professional advisers to determine eligibility.

Other federal EV and charging incentives:

More information is available at the Department of Energy’s website: https://afdc.energy.gov/fuels/laws/ELEC?state=US. Included in this list of federal EV and charging incentives is the Alternative Fuel Infrastructure Tax Credit for commercial and at-home alternative fueling facilities.

Associated Equipment

Federal Alternative Fuel Infrastructure Tax Credit

Fueling equipment for natural gas, propane, liquefied hydrogen, electricity, E85, or diesel fuel blends containing a minimum of 20% biodiesel installed through December 31, 2021, is eligible for a tax credit of 30% of the cost, not to exceed $1,000 for residential installations and $30,000 for commercial. Permitting and inspection fees are not included in covered expenses.

EV Infrastructure Exemption (charging equipment and batteries)

Charges for labor and services applicable to purchasing and installing EV infrastructure, including home charging stations, are exempt from Washington sales and use tax. The exemption applies to:

the sale or use of batteries or fuel cells for electric vehicles, including batteries or fuel cells sold as a component of an electric bus at the time of the vehicle’s sale
the sale of/charge for labor and services for installing, repairing, altering, or improving electric vehicle batteries or fuel cells
the sale of/charge for labor and services for installing, constructing, repairing, or improving battery or fuel cell electric vehicle infrastructure, including hydrogen fueling stations
the sale of tangible personal property that will become a component of a battery or fuel cell electric vehicle infrastructure

Electric vehicle infrastructure means structures, machinery, and equipment necessary and integral to support an electric vehicle. This includes battery charging stations, rapid charging stations, battery exchange stations, fueling stations that provide hydrogen for fuel cell electric vehicles, and renewable hydrogen production facilities.

Rapid charging station means an industrial grade electrical outlet that allows for faster recharging of electric vehicle batteries through higher power levels. The outlet must meet or exceed any standards, codes, and regulations in chapter 19.28 RCW and be consistent with rules adopted under RCW 19.27.540.

To report the exemption the seller must receive a completed Buyer’s Retail Sales Tax Exemption Certificate from the buyer of qualifying items and report the exempt sale by taking a “Sales of zero emissions buses, batteries, fuel cells, and infrastructure for electric vehicles deduction” from retail sales tax.

Local utilities

Some local utilities and districts offer additional incentives for installing EV charging infrastructure (https://afdc.energy.gov/fuels/laws/ELEC?state=WA). In addition, they provide public charging options, and useful information to help you get set up and ready to drive electric.

A note from Seattle City Light:

Charging your EV in Seattle can be easy! Drivers with a garage or driveway can charge using any household 120-volt outlet and a Level 1 charge cord, or have an electrician install a 240-volt Level 2 charger for faster speeds.

If you only have access to street parking, don’t worry, you can still charge your EV across a public sidewalk using a 120-volt outlet, your Level 1 charge cord, and a protective cable ramp. Learn more about how to charge your EV while parked on the street at: https://www.seattle.gov/Documents/Departments/SDOT/CAMs/CAM2119.pdf

City Light Programs Coming Soon

Curbside Level 2 EV chargers for near-home public charging in residential neighborhoods
EV chargers for apartments & condominiums
EV chargers for workplace parking

Public Fast Charging

Recharge your EV quickly at any fast charging station! Fast chargers can provide newer EVs with about 150 to 225 miles of range in just half an hour, for as little as $10 to $15.

City Light has been installing public fast chargers since 2018 and has many more planned for the future. You can take advantage of our affordable fast chargers starting at just 21¢ per kilowatt hour (kWh).

Charging – Chargeway

Charging is often a complicated subject for consumer new to the EV market, with different power levels, plug designs, charging rates, and battery capacities between models.

One way to help customers understand their options is through WSADA-partner Chargeway, which simplifies the customer experience with “electric fuel” by using colors and numbers to make visualizing charging options easier than ever.

Available on app stores or on in-dealership kiosks, the Chargeway Beacon reduces charging options to two signifiers: (1) – Green – Blue – Red for plug types; and (2) a number signifying power level/charging time. Chargeway Beacons can also be installed as a plug-in directly into a dealership’s website so a customer can understand charging information for a specific vehicle without ever leaving the page.

Both the web and in-store Chargeway Beacon also include incentive information for each vehicle model, pricing information for home charging, as well as a level 2 home charging catalog.

The company also provides helpful trip planning and charging availability visualizations directly in the app, on the beacon/kiosk, or on the dealership website.

Charging in your home

The majority of your EV charging will likely happen in your home, meaning you may want to install a dedicated charger.

A Level 1 charger ($150-$300) uses 120-volt equipment that generally comes with your vehicle and will not require special equipment – most Level 1 chargers simply plug into your existing wall outlet. This is the slowest level of charger and will take the longest time to fully charge your vehicle, however that may be fine depending on your driving habits. It typically delivers about 40 miles worth of charge in an 8-hour overnight charging session.

A Level 2 charger ($300-$1,000+, and $1,000-$2,000 for installation) uses 240-volt circuits and a larger plug, like the one used to power an electric clothes dryer. Most consumers will want to have a professional install a dedicated circuit to wherever they will park their vehicle. Once a circuit is available, the consumer has the option of installing a permanent charging station or using a portable plug they can take on the road with them. A Level 2 charger will charge a vehicle in roughly a quarter of the time it would take with a Level 1 charger.

Levels 1 and 2 are available for home charging options, while fast charging (Level 3-7) charging stations are available away from in commercial settings away rather than for residential use.

Zero Emission Vehicle Mandate

In 2020 a bill passed the State Legislature that made Washington the twelfth state to adopt California’s Zero Emission Vehicle mandate. The Department of Ecology completed rulemaking to adopt the new ZEV standards on December 19, 2022, and the requirements will take effect with the release of model year 2025 vehicles in 2024.

The new rulemaking includes a method for manufacturers to earn “early action” credits before the effective date of the program to encourage them to increase the number of EV models delivered for sale in Washington.

Zero emission vehicles (ZEV)

ZEV vehicles include battery-powered electric vehicles, plug-in hybrid electric vehicles, and fuel cell electric vehicles. Under the new ZEV mandate:

Passenger cars, light-duty trucks, medium-duty vehicles

Medium duty vehicles (trucks, vans, SUVs) are added to the current California Emissions Standards.
Manufacturers must meet a ZEV credit requirement starting with model year 2025. The number of credits varies depending on the volume of vehicles produced for sale in California.
About 8% of new vehicle sales in Washington must be zero emission (equivalent to 22% ZEV credits, since automakers can earn more than one credit per vehicle).

Medium and heavy-duty trucks (vehicles weighing more than 8,500 pounds)

Manufacturers must meet a ZEV credit requirement starting with model year 2025.
By 2035, deliveries to Washington must be:
- 55% Classes 2b–3 trucks – vans, medium pickup trucks
- 75% Classes 4–8 trucks – delivery trucks, delivery/service vans, lighter truck tractors, bucket trucks
- 40% Class 8 truck tractors – cement trucks, dump trucks, sleeper cab trucks
- The percent of annual deliveries increases each year.

E2SHB 1287 – Zero-Emission Vehicles – Preparedness

(Effective 7/25/2021)

Electric Vehicle Infrastructure Tool (RCW 47.01.520)

In consultation with Ecology, Commerce, and the state Office of Equity, Department of Transportation (Transportation) must develop and maintain a publicly available mapping and forecasting tool with locations and essential information on charging and refueling infrastructure to support forecasted levels of EV adoption, travel, and use. In addition to also meeting additional “if feasible” goals, the tool must:

be designed to enable deployment of charging and refueling infrastructure to support transportation electrification efforts that result in emission reductions consistent with state greenhouse gas (GHG) emission limits;
initially prioritize on-road transportation;
incorporate Department of Transportation traffic data for passenger and freight vehicles;
integrate population, health, environmental, and socioeconomic data; and
integrate related analyses, such as the state energy strategy

Utility Resource Plans (RCW 19.280.030)

Electric utilities’ Resource Plans must account for:

Load forecasts with anticipated levels of ZEV use.
Analysis and other information in the utilities’ transportation electrification plans; and
Assumed use case forecasts and associated energy impacts of plans due after September 2, 2023

Building Requirements for EVs (RCW 19.27.540)

The state building code requirements must exceed the 2019 minimum requirements for residential and commercial buildings to the extent necessary to support anticipated levels of ZEV use. Rules must be adopted by July 1, 2024.

2SSB 5192 – Electric Vehicle Supply Equipment (RCW 47.01)

Publicly available EV supply equipment (EVSE) and associated parking spaces designated as available to the public are subject to increased regulation, including signage and payment option requirements. EVSE and associated parking at a licensed vehicle dealership are exempt from many of the requirements, including:

Signage Requirements

By January 1, 2023, EVSE providers must ensure all publicly-available EVSE are clearly marked and disclose all charges, fees, and costs for a charging session at the point of sale, prior to initiating a charging session. At a minimum the disclosure must include information related to:

any fee for use of the parking space;
a nonmember plug-in fee from the EVSE;
price to refuel in U.S. dollars per kilowatt hour or megajoule;
any changes in price to refuel due to variable pricing;
any other fees charged for a charging session; and
disclosure if the charging session, or portion of the session, is offered at no cost.

EVSE and associated parking spaces provided by a vehicle dealer licensed under RCW 46.70 at its established place of business are exempt from the sign requirements. This includes all licensed new and used vehicle dealerships.

Methods of Payment

By January 1, 2023, Washington State Department of Agriculture (WSDA), with the Utilities and Transportation Commission (UTC) and Department of Commerce (Commerce), must adopt rules requiring all EVSE providers to make multiple payment methods available at all public Level 2 and DC fast chargers. At a minimum the rules must provide minimum required payment methods that are convenient and reasonably support access for all current and future users.

EVSE and associated parking spaces provided by a vehicle dealer licensed under chapter 46.70 RCW at its established place of business are exempt from the methods of payment requirements.

Interoperability Standards

By January 1, 2023, WSDA, in consultation with Commerce and UTC, must adopt rules establishing requirements for all EVSE to, at a minimum, meet and maintain nonproprietary interoperability standards for Level 2 and DC fast charger EVSE. The requirements may not provide the purchase or license of proprietary technology or software from any other company and may not require companies to maintain interoperability agreements with other companies. Interoperability means the ability of hardware, systems, software, or a communication network provided by one service provider to interact with and exchange information, including payment information, between hardware, software, or a communication network provided by a different service provider.

EVSE and associated parking spaces provided by a vehicle dealer licensed under chapter 46.70 RCW at its established place of business are exempt from the methods of payment requirements.

Reporting Requirements

By January 1, 2023, publicly available EVSE providers must report inventory and payment method information to the National Renewable Energy Laboratory Alternative Fuels Data Center. The information must be reported annually and must include at a minimum:

EVSE service provider information;
EVSE inventory for active and retired, decommissioned, or removed EVSE in Washington; and
annual reports detailing EVSE payment information.

EVSE and associated parking spaces provided by a vehicle dealer licensed under chapter 46.70 RCW at its established place of business are exempt from the reporting requirements.

Fees and Civil Penalties

(EVSE at dealerships are not exempt)

Fees are established at $20 for Level 2 electric vehicle supply equipment ports and $40 for direct current fast charger electric vehicle supply equipment ports. In addition, WSDA may adopt a reasonable registration fee for EVSE to cover the remaining costs associated with enforcement.

Civil penalties for incorrect measuring equipment is set at $200 for the first violation, and $500 for subsequent violations, enforced by the Department of Agriculture.

Executive Order 20-01

In 2020 Governor Inslee signed an executive order directing state government to increase its adoption of alternative fuels under standards adopted by a cross-agency Governing Council. Directors of state agencies are tasked with:

Zero-Emission Vehicles.
Directors must ensure that each lease or purchase of new vehicles must prioritize BEVs (or better emerging technology) and support the installation of associated charging infrastructure. For vehicle classes in which BEVs are not available, agencies must prioritize the most cost-effective low-emission options available.
New Facility Construction.
Subject to available funding, Directors must ensure that all newly constructed state-owned (including lease-purchase) buildings are designed to be zero energy or zero energy-capable, and include consideration of net-embodied carbon. Where a cost effective zero-energy building is not yet technically feasible, buildings must be designed to exceed the current state building code for energy efficiency to the extent possible.
Energy Efficiency in Owned and Leased Facilities.
Directors must ensure that their agencies adopt and implement plans to dramatically reduce energy use in state-owned facilities. In most cases, agencies will choose to adopt tools to improve energy efficiency, operations, process management, and occupant behavior in the short term, while accelerating planning for deep facility retrofits and new construction in future years. For leased facilities, where a working group identifies cost-effective opportunities for savings, Directors must ensure the pursuit of these opportunities.
State Ferries.
The Secretary of the Department of Transportation (WSDOT) must ensure the Washington State Ferry system begins the transition to a zero-carbon emission ferry fleet, including the accelerated adoption of both ferry electrification and operational improvements that will conserve energy and cut fuel use.
100% Clean Electricity.
Directors must ensure agencies are evaluating available options from electricity providers, and pursuing opportunities identified by the Council to support state operations from zero-emissions electricity sources.
Toxics and Solid Waste Reduction.
Directors must ensure that their agencies are complying with state rules and guidance on environmentally preferable purchasing. Directors of the Department of Enterprise Services (DES) and the Department of Ecology (ECY) must ensure their agencies are collaborating to produce guidance that is simple, clear, and targeted on the most important opportunities for toxics and solid waste pollution reduction.

· Finance and Budget.

Directors must support the efforts of a working group to better align current fiscal policies or create new policies where needed to support emissions-reduction and carbon sequestration efforts.

Infrastructure Investment and Jobs Act

The 2021 Infrastructure Investment and Jobs Act (IIJA) authorizes up to $7.5 billion through two new programs designed to facilitate the installation of up to 500,000 electric vehicle (EV) chargers across the country. These funding programs, the key elements of which can be read by clicking here, are being administered pursuant to the White House’s EV Charging Action Plan. The summary offers key takeaways for dealers and ATAEs; initial background information; a breakdown of the funding; key deadlines; and additional resources.

The Biden administration announced that $5 billion authorized for EV charging under the IIJA will be made available under the National Electric Vehicle Infrastructure (NEVI) Formula Program. In conjunction with this announcement, the Federal Highway Administration (FHWA) launched a new website on BIL implementation with fact sheets, funding notices, guidance, regulations, and presentations.

Importantly, FHWA released a new NEVI program guidance: https://www.fhwa.dot.gov/environment/alternative_fuel_corridors/nominations/90d_nevi_formula_program_guidance.pdf.

As explained in the Guidance, each state is required to submit an EV Infrastructure Deployment Plan (Plan) describing how the state intends to use its apportioned NEVI Formula Program funds. States may not obligate their NEVI Formula Program funds until FHWA approves their Plans. Plans must be submitted to the Joint Office of Energy and Transportation (Joint Office) no later than August 1, 2022, and FHWA will approve eligible Plans by September 30, 2022. States that submit Plans before August 1, 2022, will be approved by FHWA on a rolling basis.

In addition, FHWA specified the funding amounts states will receive upon approval of their individual Plans:

FUNDING FOR THE NATIONAL ELECTRIC VEHICLE INFRASTRUCTURE
FORMULA PROGRAM UNDER THE BIPARTISAN INFRASTRUCTURE LAW

State	Estimated 5-Year Total Funding in dollars
Alabama	79,308,285
Alaska	52,415,294
Arizona	76,483,976
Arkansas	54,121,947
California	383,673,792
Colorado	56,536,754
Connecticut	52,503,813
Delaware	17,682,951
Dist. of Col.	16,679,459
Florida	198,057,481
Georgia	134,975,283
Hawaii	17,680,364
Idaho	29,899,106
Illinois	148,621,459
Indiana	99,605,738
Iowa	51,374,369
Kansas	39,503,201
Kentucky	69,455,682
Louisiana	73,367,735
Maine	19,296,432
Maryland	62,818,576
Massachusetts	63,488,497
Michigan	110,061,712
Minnesota	68,164,918
Mississippi	50,557,563
Missouri	98,961,186
Montana	42,889,962
Nebraska	30,214,832
Nevada	37,958,457
New Hampshire	17,271,581
New Jersey	104,373,268
New Mexico	38,387,895
New York	175,466,514
North Carolina	109,024,196
North Dakota	25,952,484
Ohio	140,120,116
Oklahoma	66,296,972
Oregon	52,249,356
Pennsylvania	171,514,120
Puerto Rico	13,661,153
Rhode Island	22,861,459
South Carolina	69,998,769
South Dakota	29,479,906
Tennessee	88,334,969
Texas	407,774,759
Utah	36,298,604
Vermont	21,215,761
Virginia	106,376,132
Washington	70,865,271
West Virginia	45,683,164
Wisconsin	78,654,701
Wyoming	26,780,026
Total	4,155,000,000