Aug. 26, 2024

Tennessee State Tax Incentives for Purchasing a Used EV

Tennessee currently does not offer direct state tax incentives for purchasing a used electric vehicle (EV). However, there are several other incentives, rebates, and programs offered by utilities and local initiatives that can help reduce the cost of purchasing and owning an EV. Here’s a list of available incentives for Tennessee residents:

1. Tennessee Valley Authority (TVA) Incentives

The Tennessee Valley Authority (TVA) offers a rebate of up to $1,000 for purchasing a used EV through its 'EVolve Electric Vehicle Rebate Program.' This program aims to promote the adoption of electric vehicles in the region. You can check with your local utility provider to see if this rebate applies.

For more info, check here.

2. Local Utility Rebates

Some local utilities in Tennessee, such as Nashville Electric Service (NES) and Knoxville Utilities Board (KUB), offer rebates or special rates for EV owners. These rebates may cover the installation of EV chargers or provide discounted electricity rates during off-peak hours.

Nashville Electric Service EV Programs

Knoxville Utilities Board EV Programs

3. Charging Infrastructure Incentives

Various incentives are available to help offset the cost of installing home EV chargers. Many local utilities offer rebates or financial assistance for installing Level 2 chargers, which are faster than standard chargers.

4. No Emissions Testing for EVs

Tennessee waives emissions testing requirements for electric vehicles. This is not a direct monetary incentive, but it saves EV owners both time and money, as they don’t have to undergo annual emissions testing.

5. HOV Lane Access

EVs in Tennessee may be eligible for High Occupancy Vehicle (HOV) lane access, even with a single occupant. This can save EV drivers time during their daily commutes, particularly in urban areas.