Electric vehicles cost less to drive, less to maintain, and are even proving safer on the road than vehicles with internal combustion engines. Think about it. Your car will never – we repeat, never – need an oil change. A gas station? Purchase a BEV and you’ll never need one for the life of your car. No more gasoline fumes to inhale. No oil leaks. BEVs have fewer moving parts compared to a conventional gasoline engine, resulting in less maintenance. And break wear is significantly reduced thanks to regenerative braking. Electric vehicles also reduce the harmful emissions that contribute to climate change, thanks in part to how efficient they are. And, they’re getting cleaner every day as Hawaii progresses to its goal of 100% clean energy by 2045.

You can calculate your estimated fuel savings from choosing electric over gas, by inputting a few key metrics into this Savings Calculator. You can calculate your kWH rate from the information in your utility bill, by dividing your total charges by the total kWh used during the period billed. For example, the sample bill to the right of $157.26 for 525kWh equates to a rate of $.30/kWh. Your electricity costs will fluctuate slightly over time, so it may be a good idea to take an average over multiple billing cycles.

If you purchase a new qualified plug-in electric vehicle (EV) or fuel cell electric vehicle (FCV), you may be eligible for a credit of up to $7,500 under Internal Revenue Code Section 30D. The recent Inflation Reduction Act of 2022 brought changes to the credit rules, applicable to vehicles bought between 2023 and 2032.

Both individuals and businesses have the opportunity to claim this credit. To qualify, the vehicle should be bought for personal use and primarily used within the United States. Additionally, your modified adjusted gross income (AGI) must not exceed specific thresholds depending on your filing status:

• $300,000 for married couples filing jointly
• $225,000 for heads of households
• $150,000 for all other filers

You have the option to use either your modified AGI from the year you take delivery of the vehicle or the year before, whichever is lower. If your modified AGI falls below the threshold in at least one of the two years, you can claim the credit.

It’s important to note that the credit is nonrefundable, meaning you cannot receive more in credit than the taxes you owe. Furthermore, any excess credit cannot be applied to future tax years. Be sure to consult official tax resources or seek advice from a tax professional for detailed information and guidance specific to your circumstances.

To learn more about the clean vehicle tax credit and determine your eligibility, visit the IRS website.