Tax Credits & Incentives

PSE Up & Go Electric for Fleet assists public and private fleets in their transition to electric vehicles by offering savings on capital expenses, reducing operation and maintenance costs, and supporting sustainability goals.

Our incentives – up to $250,000 per charging location – can help your municipality, government agency, school district, transit agency, business or organization prepare for the fuel of the future while covering a significant portion of the costs of electric service upgrades, EV charging equipment and installation.

Save up to $120,000 on EV chargers for employees
PSE’s Up & Go Electric for Workplace program covers up to 100 percent of the cost for qualifying customers to install and maintain Level 2 charging for their employees. Qualifying businesses and organizations can apply now to upgrade their workplace amenities, keep up with other employers and take advantage of reduced upfront costs for charger installation.

Qualified customers – including community-based organizations, Tribal entities, government agencies and BIPOC-owned small businesses – who directly serve and/or benefit highly impacted communities and vulnerable populations may be eligible to receive additional technical advisory services and enhanced Empower Mobility incentives on both electric vehicle service equipment and electric vehicles.

Businesses and tax-exempt organizations that buy a qualified commercial clean vehicle may qualify for a clean vehicle tax credit of up to $40,000 under Internal Revenue Code (IRC) 45W. The credit equals the lesser of:

• 15% of your basis in the vehicle (30% if the vehicle is not powered by gas or diesel)
• The incremental cost of the vehicle

Qualified vehicles with gross vehicle weight ratings (GVWRs) of under 14,000 pounds have a maximum credit of $7,500.

Plug-in electric vehicles must draw significant propulsion from an electric motor with a battery capacity of at least:

• 7 kilowatt hours if the gross vehicle weight rating (GVWR) is under 14,000 pounds
• 15 kilowatt hours if the GVWR is 14,000 pounds or more

Businesses are eligible to receive a Federal Tax Credit for alternative fueling infrastructure including EV charging stations. Tax credits for qualified alternative fueling infrastructure are up to 30% of the cost to purchase and install the infrastructure. Fueling station owners who install qualified equipment at multiple sites are allowed to use the credit towards each location. Consult with your tax professional to see how these credits apply to your business.

Available to anyone who purchases an electric vehicle battery or fuel cell, or installs an electric vehicle battery, fuel cell charging station, or hydrogen fueling stations.

A sales tax exemption is available for purchases on or after July 28, 2019, and the use tax exemption is available on purchases on or after Aug. 1, 2019.

This program applies to businesses that use commercial vehicles to transport commodities, merchandise, produce, refuse, freight, animals or passengers, using vehicles that use clean alternative fuel. The vehicle must display a WA license plate.

For help completing the application for credit, call the Taxpayer Account Administration Division at 360-705-6214.

For help claiming the credit on your excise tax return, call 360-705-6705

The Inflation Reduction Act invests $1 billion to replace existing non-zero-emission heavy-duty vehicles with zero-emission vehicles, support zero-emission vehicle infrastructure, and to train and develop workers. The EPA will offer funding to eligible recipients to replace existing non-zero-emission Class 6 and 7 heavy-duty vehicles with eligible Class 6 and 7 zero-emission vehicles.

The Diesel Emissions Reduction Act (DERA) Program funds grants and rebates that protect human health and improve air quality by reducing harmful emissions from diesel engines. The program solicits applications for projects that achieve significant reductions in diesel emissions and exposure, particularly from fleets operating in areas designated by the Administrator as poor air quality areas.

EPA: Clean School Bus Program

The EPA’s Clean School Bus Program provides $5 billion over the next five years (FY 2022-2026) to replace existing school buses with zero-emission and low-emission models. This program is supported with funding from the Bipartisan Infrastructure Law,

FTA provides grants to local public transit systems, including buses, subways, light rail, commuter rail, trolleys and ferries. Since 1964, FTA has partnered with state and local governments to create and enhance public transportation systems, investing more than $13 billion annually to support and expand public transit services. FTA provides annual formula grants to transit agencies nationwide as well as discretionary funding in competitive processes.

The Bipartisan Infrastructure Law, as enacted in the Infrastructure Investment and Jobs Act, was signed into law by President Biden in November 2021 and is the largest federal investment in public transportation in the nation’s history. The legislation reauthorizes surface transportation programs for FY 2022-2026 and provides advance appropriations for certain programs. The Bipartisan Infrastructure Law authorizes up to $108 billion to support federal public transportation programs, including $91 billion in guaranteed funding.

The Airport Zero Emissions Vehicle (ZEV) and Infrastructure Pilot Program improves airport air quality and facilitates use of zero emissions technologies at airports. Created in 2012, the program allows airport sponsors to use Airport Improvement Program (AIP) funds to purchase ZEVs and to construct or modify infrastructure needed to use ZEVs.

Grant funding must be used for airport-owned, on-road vehicles used exclusively for airport purposes. Vehicles and infrastructure must meet the Federal Aviation Administration's Airport Improvement Program requirements, including Buy American requirements.

The Washington State Department of Ecology offers grants for the replacement or repower of medium- and heavy-duty diesel refuse trucks, street sweepers, freight switcher locomotives, port cargo handling equipment, and forklifts with zero emission vehicles (ZEVs) and associated infrastructure.

Eligible applicants include local and state government entities, utilities, port authorities, school districts, universities, and tribal governments. Applicants located in environmental justice communities will be given funding priority. Additional terms and conditions apply.

The Washington State Department of Transportation (WSDOT) offers grants for projects that reduce the carbon intensity of the Washington transportation system, including fleet electrification, modification or replacement of facilities to facilitate fleet electrification and hydrogen fueling, upgrades to electrical transmission and distribution systems, and constructing of charging and fueling infrastructure.

To be eligible, a transit authority must provide matching funding of at least 20% of the total cost of the project. Priority will be given to projects that serve overburdened communities and underserved populations. For more information, including funding availability and program dates, see the WSDOT Green Transportation Capital Grants website.