If you run a business or nonprofit, you may qualify for federal, state, and/or utility incentives to purchase electric vehicles for your organization and/or install charging stations for your fleet or for use by your customers and the public. Learn more below!

The federal incentive for acquiring an EV and (30W) will expire on September 30, 2025 and the federal incentive for installing a charging station (45W) will expire on June 30, 2026—both due to the One Big Beautiful Bill Act. We urge you to take advantage of the federal incentives before they are eliminated.

Incentives to Purchase Electric Vehicles

Federal Commercial Clean Vehicle Tax Credit (45W)

Note: The 45W commercial clean vehicle credit is set to be eliminated on September 30, 2025.

• Available to business and to tax-exempt entities via Elective Pay
• No limit on the number of credits per entity
• For the purchase of electric vehicles, credit equal to the lesser of 30% of the cost of the electric vehicle or the incremental cost of the vehicle
  • Capped at $7,500 for vehicles with a gross vehicle weight rating under 14,000 lbs
  • Capped at $40,000 for heavier vehicles
• Credits are nonrefundable, so you can't get back more on the credit than you owe in taxes
• Must meet certain requirements:
  • Must be subject to a depreciation allowance, with an exception for vehicles placed in service by a tax-exempt organization and not subject to a lease
  • Must be made by a qualified manufacturer (list available online)
  • Must be for business use primarily in the US, and primarily on public roads
  • Battery capacity must be at least 7 kWh for vehicles under 14,000 lbs and 15 kWh for heavier vehicles
• Also available for fuel-cell vehicles
  

DRIVE FLEET

• Available to Rhode Island businesses (fewer than 500 employees), nonprofits, or public sector entities
• $1,500 for the purchase or lease of a new battery electric vehicle (< $60,000) or $1,000 towards the purchase or lease of a used battery electric vehicle (< $40,000)
• Rebate increased by $500 if located within a municipality with high asthma rates (Central Falls, Cranston, East Providence, Pawtucket, or Providence)
• Limited to 5 vehicles every 24 months
• Must apply within 120 days of purchase
• Must purchase or lease from a Rhode Island dealership or one of a list of pre-qualified out-of-state dealerships

Incentives for Charging Installation

Federal Alternative Fuel Infrastructure Tax Credit (30C)

Note: The 30C tax credit is set to be eliminated on June 30, 2026.

• Covers 30% of the cost or 6% in the case of property subject to depreciation, not to exceed $100,000
• Projects that meet prevailing wage and apprenticeship requirements may be eligible to receive the full 30% tax credit, regardless of depreciation status
• Covered expenses do not include permitting or inspection fees
• Includes bidirectional chargers
• Installation must be in a low-income community or in a rural community to qualify; click here to check eligibility
• Available to tax-exempt entities via Elective Pay

 PowerUp RI

• Covers up to 50% of the purchase and installation costs of Level 2 chargers that Energy Star Certified, depending on if an electrical upgrade is needed
• Open to RI residents that own or lease a battery electric vehicle (BEV) or plug-in-hybrid (PHEV) that live in a single-family or multi-family home
• Landlords interested in installing chargers on rental properties are eligible to apply for the standard rebate
• Income-qualifying rebate is available for qualifying residents
• Must apply within 180 days of purchasing and installing the charger