Arizona EV Tax Credit and Incentive Savings Calculator
Estimate your total electric vehicle incentive savings in Arizona, including the federal EV tax credit, Arizona utility rebates, HOV lane access value, and vehicle license tax (VLT) exemptions.
Formulas Used
1. Federal Tax Credit (IRA §30D):
Up to $7,500 for new BEVs/PHEVs meeting IRA battery mineral sourcing and MSRP/income limits. User selects applicable tier ($7,500 / $3,750 / $0).
2. Arizona Utility Rebate:
APS: $250 | SRP: $400 | TEP: $300 (one-time, upon EV purchase/charger installation).
3. Arizona VLT Exemption:
AZ exempts EVs from the $4/year alternative fuel vehicle surcharge (ARS § 28-5801).
VLT Savings = $4 × Ownership Years
4. HOV Lane Access Value:
Arizona allows single-occupant EVs in HOV lanes (ARS § 28-737).
HOV Value = Hours Saved/Year × Hourly Wage × Years
5. Annual Fuel Savings:
Gas Cost = (Annual Miles ÷ MPG) × Gas Price/Gallon
Electric Cost = (Annual Miles ÷ EV Efficiency) × Electricity Rate/kWh
Annual Fuel Savings = Gas Cost − Electric Cost
Total Fuel Savings = Annual Fuel Savings × Years
6. Maintenance Savings:
Total Maintenance Savings = $0.06/mile × Annual Miles × Years
(Based on U.S. DOE and Consumer Reports EV vs. ICE maintenance cost differential)
7. Total Savings:
Total = Federal Credit + Utility Rebate + VLT Savings + HOV Value + Fuel Savings + Maintenance Savings
8. Net Purchase Cost:
Net Cost = Vehicle Price − Federal Credit − Utility Rebate
Assumptions & References
- Federal Clean Vehicle Credit (§30D) per the Inflation Reduction Act (IRA) 2022; eligibility depends on vehicle MSRP caps ($55,000 for cars, $80,000 for SUVs/trucks), buyer income limits, and battery sourcing requirements. Verify at fueleconomy.gov.
- APS EV rebate: up to $250 for Level 2 charger installation (aps.com).
- SRP EV rebate: up to $400 for qualifying EV charger (srpnet.com).
- TEP EV rebate: up to $300 for EV charger installation (tep.com).
- Arizona does not impose a state income tax credit for EV purchases as of 2024, but exempts EVs from the alternative fuel vehicle surcharge under ARS § 28-5801.
- Arizona HOV lane access for EVs with green stickers under ARS § 28-737; sticker available through ADOT.
- Maintenance savings of $0.06/mile based on U.S. Department of Energy Alternative Fuels Data Center and Consumer Reports (2020) comparing BEV vs. ICE total maintenance costs.
- Average Arizona electricity rate ~$0.13/kWh (EIA, 2023); average U.S. gas price varies — enter current local price.
- This calculator provides estimates only. Consult a tax professional for federal credit eligibility. Utility rebates subject to program availability and funding.
- Sources: AFDC Arizona, IRS §30D, ARS § 28-737.