Electric Vehicle Incentives 2026: Complete Guide

The federal EV tax credit landscape shifted in 2026, but savings are still available. Oregon’s state rebates—up to $5,000 for low-income households—remain active, and leasing an EV may still offer federal savings. Here’s how to maximize your incentives in 2026.

Federal EV Incentives 2026: What Changed

The federal electric vehicle tax credit (Clean Vehicle Credit) for direct purchases expired in 2025. However, savings may still be available if you lease an EV, as dealers can pass through commercial clean vehicle credits. Here’s what you need to know:

How Much Are the Savings Worth?

• If you lease an EV, dealers may offer up to $7,500 in savings by passing through the commercial clean vehicle credit (Section 45W).
• The direct-to-consumer $7,500 tax credit for purchases is no longer available.

Who Qualifies for Lease Savings?

• Income limits no longer apply for leasing, as the credit is claimed by the dealer, not the consumer.
• All leases are eligible for the commercial credit, regardless of the lessee’s income.
• Ask your dealer if they participate in the commercial credit program and how much savings they pass through.

Vehicle Eligibility (2026)

For leased EVs, the commercial credit (Section 45W) has different rules than the expired consumer credit:

• No MSRP cap for leased vehicles.
• No manufacturer cap (e.g., Tesla and GM leases may still qualify).
• Final assembly in North America is still required.
• Battery and critical minerals requirements still apply (see below).
• Battery and Critical Minerals: The vehicle must meet battery sourcing and critical minerals requirements (see below).

Battery and Critical Minerals Requirements

The commercial credit (Section 45W) also requires compliance with battery and critical minerals rules:

1. Critical Minerals Requirement: At least 40% of the critical minerals in the battery must be extracted or processed in the U.S. or a country with a free trade agreement with the U.S.
2. Battery Components Requirement: At least 50% of the battery components must be manufactured or assembled in North America.

These percentages increase annually, so check the latest IRS guidelines for 2026.

How to Access Federal EV Savings in 2026

Lease a Qualifying Vehicle

• Ask your dealer if they participate in the commercial clean vehicle credit (Section 45W) program.
• Confirm that the vehicle meets final assembly, battery, and critical minerals requirements.
• No IRS form is required for lessees—the dealer claims the credit and passes savings through lower lease payments.

Point-of-Sale Savings for Leases

• Dealers may offer upfront savings on leases by applying the commercial credit at the time of signing.
• Ask your dealer if they offer this option and how much savings you can expect.

Oregon-Specific EV Incentives (2026)

Oregon’s state incentives remain fully active in 2026, making EV ownership more affordable:

Oregon Clean Vehicle Rebate Program (OCVRP)

• Up to $2,500 for new qualifying EVs.
• Up to $5,000 for low-income households (income limits apply).
• Used EV rebate: Up to $2,500 for used qualifying EVs (state-funded, not affected by federal changes).

Income Limits for OCVRP (2026)

| Household Size | Maximum Annual Income | |----------------|------------------------| | 1 | $51,520 | | 2 | $69,680 | | 3 | $87,840 | | 4 | $106,000 | | 5+ | Add $18,160 per person |

Low-income households (80% or below the median family income for Oregon) qualify for the higher rebate amounts.

Oregon EV Charging Station Rebate

• Up to $1,000 for installing a home EV charging station.
• Up to $2,500 for businesses and public agencies.

Local Utility Rebates

• Portland General Electric (PGE): Up to $1,000 for qualifying EV purchases and charging stations.
• Pacific Power: Up to $1,500 for qualifying EV purchases and charging stations.

Oregon’s Used EV Rebate (2026)

Oregon’s Used EV Rebate remains available for qualifying purchases:

Eligibility Rules

• Sale Price Cap: The used EV must be priced at $30,000 or less.
• Model Year: The vehicle must be at least 2 years old (e.g., a 2024 model purchased in 2026).
• Dealer Requirement: The sale must be through a licensed dealer.
• Income Limits:

| Household Size | Maximum Annual Income (Standard Rebate) | Maximum Annual Income (Enhanced Rebate) | |----------------|------------------------------------------|------------------------------------------| | 1 | $51,520 | $41,216 | | 2 | $69,680 | $55,744 | | 3 | $87,840 | $70,272 | | 4 | $106,000 | $84,800 | | 5+ | Add $18,160 per person | Add $14,528 per person |

Low-income households (80% or below the median family income for Oregon) qualify for the enhanced rebate of up to $5,000.

How to Claim the Used EV Rebate

• Apply through the Oregon Department of Environmental Quality (DEQ) after purchase.
• Visit Oregon.gov/DEQ for details and application instructions.

Qualifying Vehicles for Leasing in 2026

Here are some popular EVs that may qualify for lease savings in 2026 (check with your dealer for eligibility):

| Make/Model | Type | MSRP (Est.) | |--------------------------|------------|--------------| | Tesla Model 3 | Sedan | $40,000 | | Ford Mustang Mach-E | SUV | $45,000 | | Chevrolet Bolt EV | Hatchback | $35,000 | | Hyundai Ioniq 5 | SUV | $45,000 | | Kia EV6 | SUV | $45,000 | | Rivian R1T | Truck | $70,000 | | Ford F-150 Lightning | Truck | $55,000 |

Eligibility depends on final assembly location, battery sourcing, and critical minerals compliance. Ask your dealer for details.

Bottom Line

• The federal EV tax credit for direct purchases expired in 2025, but leasing an EV may still offer up to $7,500 in savings through the commercial clean vehicle credit.
• Oregon’s state rebates remain active, including up to $5,000 for low-income households and $2,500 for used EVs.
• Income limits no longer apply for leasing, making it a flexible option for all buyers.
• Ask your dealer about lease savings and check the Oregon DEQ website for state rebate details.

The incentive landscape has shifted, but EVs are still a smart financial choice—especially with Oregon’s ongoing programs.