Delaware EV Tax Credits Guide

Based on data from the federal Department of Energy and the Bureau of Transportation Statistics, the majority of the electricity used in Delaware comes from plants that run on natural gas. Electricity coming from coal-fired plants dropped from 46 percent of the state’s net generation to just seven percent by 2021, coming from the single remaining facility.

As of mid-year 2022, government data indicates that 0.19 percent of registered vehicles in Delaware were electric (1,950 units), making it the 22nd state in the U.S. for per capita EV adoption. The U.S. Department of Energy says there are 144 public Level 2 and Level 3 charging stations operating within the state.

Does Delaware Have Tax Credits For Buying New EVs?

No; instead of tax credits Delaware offers cash rebates to buyers and lessees of new electric vehicles and plug-in hybrids. There’s a $2,500 rebate for electric vehicles and a $1,000 rebate for plug-in hybrids.

Does Delaware Have Tax Credits For Buying Used EVs?

No, Delaware does not offer any tax credits, rebates or other incentives to buyers of used electric vehicles or plug-in hybrid vehicles.

Does Delaware Have Credits For Installing Home Charging Stations?

Incentives for installing EV charging stations within Delaware are limited to public, workplace, commercial and multi-unit dwelling locations.

The Delaware Electric Cooperative offers residential customers a one-time $200 billing credit and an additional $5 monthly billing credit during the summer months for EV owners who use their EV chargers only during off-peak hours. Note that this is limited to those who purchase and install a ChargePoint-brand home electric-vehicle charger with WI-FI capability.

Does Delaware Have Credits For Installing Solar Panels?

Qualifying Delaware homeowners having moderate incomes can have 70% of the cost of solar panels and installation via approved contractors paid for by the state’s solar program for a system size up to 6.0 kW.

Of note, Delaware has a statewide net metering program in which utility companies allow solar-generating homeowners to earn credits for the excess power their systems produce, and at the full retail rate, which is generous compared to other states. Participation is limited to systems that have a capacity of less than 1 megawatt and is not available to customers who already receive low-income assistance.

In addition, Delaware residents can take advantage of a federal tax credit of 30 percent to have solar panels installed, which includes the cost of materials, labor and related fees, including necessary permits.

Does Delaware Penalize EV Buyers?

No, unlike many states, Delaware does not charge electric vehicle and plug-in hybrid owners a fee in addition to the usual annual registration costs.

What Other EV Incentives Can I Get in Delaware?

Those purchasing or leasing an EV in Delaware may qualify for the Federal Electric Car Tax Credit of up to $7,500, though it’s limited to models assembled in North America and is subject to limitations regarding vehicle type, price and family income thresholds, which may yet change.

In addition, used electric vehicles will be eligible for a one-time federal tax credit of up to $4,000, or 30 percent of the purchase price, provided it costs less than $25,000, is more than two years old, and is being sold by its original owner. It’s also subject to family-income restrictions and other limitations.


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