EV Incentives Outlook by State

While federal incentives for electric vehicles are set to sunset on September 30, states such as California, Massachusetts, Oregon, New Jersey, and New York have announced new programs for fleets and new funding for existing ones.

Chris Brown・Associate Publisher

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September 9, 2025

The caption "EV Incentives Sunsetting September 30th" in blue is laid out over two overlaying transparent images of a charging electric vehicle and a map of the West Coast. — As the federal Commercial Clean Vehicle Tax Credit nears expiration, states and utilities are stepping up with new EV fleet and charging incentives, helping fleets navigate the transition to electrification.
Image: Automotive Fleet

4 min to read

With the federal Commercial Clean Vehicle Tax Credit set to expire on Sept. 30, fleets are facing the loss of a nationwide benefit that helped reduce the cost of EV adoption. Yet according to Richard Hall, head of ZappyRide EV Products at J.D. Power, the picture is more balanced, with new state and utility incentives filling the gap.

States and utilities are stepping in with a wave of new and renewed incentive programs designed to support fleet electrification and charging infrastructure.

“While diminished federal EV incentives may be grabbing headlines, there’s more to the story,” Hall said. “We continue to see healthy growth in the number of state and utility fleet vehicle incentives. The underlying economics of EV fuel and maintenance also reinforce cost savings for many fleet scenarios.”

Incentives Shift to States and Utilities

The elimination of the federal credit will have the greatest impact on fleets, as rebates will soon depend on whether vehicles are located in states or utility service territories offering incentives.

Coastal states remain the most active. California continues to roll out funding through its air districts and

statewide programs, while Oregon, Washington, Massachusetts, New York, and New Jersey all provide robust support for vehicles and commercial charging.

Recent state announcements include California’s new freight and off-road equipment programs, Oregon’s diesel replacement grants, and Massachusetts’ expanded MassEVIP fleet and charging incentives.

In New Jersey, a $75 million funding round will back medium- and heavy-duty EV purchases through the NJ ZIP program, while New York is preparing to reopen its truck voucher program and expand charging infrastructure support.

Infrastructure and School Bus Support

A growing share of incentives now target charging infrastructure, particularly for medium and heavy-duty vehicles, alongside continued funding for electric school buses across much of the country. These programs highlight how policymakers are broadening the scope of electrification support to cover both vehicles and the ecosystems they require.

An Uncertain Federal Outlook

Despite this state-level momentum, challenges persist. Fleets in the central U.S. may see fewer options, both due to the tax credit’s elimination and a less favorable political climate for EV adoption. Meanwhile, the current administration has signaled a reduced emphasis on clean energy funding, creating additional uncertainty for corporate investment.

Still, Hall notes that the EV fleet landscape is not as bleak as some expected.

“State and utility incentives for fleets have not slowed, and for many fleets the economics of EV fuel and maintenance continue to underscore cost savings,” Hall said. “Still, uncertainty around federal funding and economic conditions may influence corporate investment in the years ahead.”

Some New and Upcoming State and Utility Fleet EV Incentives

California

Depot Charging Infrastructure for Zero-Emission Medium and Heavy-Duty Vehicles

Up to $20 million in grant funds for depot charging and hydrogen refueling infrastructure.
Launch Date: March 28, 2025 (currently paused for updates)
Program Details

CalCAP Zero-Emission Heavy-Duty Vehicles

Offers 25% loan loss reserve contributions for zero-emission vehicle and infrastructure loans via three pilot programs.
Launch Date: Active as of 2025
Program Details

Clean Off-Road Equipment Voucher Incentive Project (CORE)

Provides point-of-sale discounts for more than 300 types of zero-emission off-road equipment.
Launch Date: Aug. 19, 2025
Program Details

South Coast AQMD Battery Electric Freight Vehicle Deployment Incentive Program

Rebates for replacing diesel Class 8 trucks with battery-electric trucks.
Launch Date: Aug. 15, 2025
Program Details

Oregon

Clean Truck Grant Program

Covers up to 33% or $130,000 per vehicle for replacing diesel trucks with zero-emission vehicles.
Launch Date: Aug. 15, 2025
Program Details

Diesel Emissions Mitigation Grants

Annual funding of $8 million, with priority for high-pollution counties.
Launch Date: Aug. 15, 2025
Program Details

Massachusetts

MassEVIP Workplace & Fleet Charging Incentives

Covers up to 60% of costs, max $50,000 per address for Level 1 and 2 EVSE.
Launch Date: Rolling basis, active in 2025
Program Details

MassEVIP Fleets Incentives

Up to $7,500 per BEV, $5,000 per PHEV, and $750 per ZEM for public entities.
Launch Date: Rolling basis, active in 2025
Program Details

New Jersey

Clean Fleet EV Incentive Program

Incentives for public fleets to adopt EVs.
Launch Date: Active in 2025
Program Details

Electric School Bus Program

Provides $15 million/year for three years to replace diesel school buses.
Launch Date: Aug. 4, 2025
Program Details

WorkClean: Diesel Modernization Program

Supports modernization of diesel equipment.
Launch Date: Active in 2025
Program Details

NJ ZIP Phase 3

Vouchers from $15,000 to $175,000 for replacing medium- and heavy-duty vehicles, depending on vehicle class; $75 million total funding.
Launch Date: Approved Feb. 25, 2025; opening soon
Program Details