As of January 2024, Ohio does not offer state-level tax credits for electric vehicle (EV) purchases. However, residents can still benefit from federal incentives:
Federal Tax Credit for New EVs
A credit of up to $7,500 is available for new, qualified EVs purchased between 2023 and 2032. This credit can be transferred directly to the seller to reduce the purchase price.
Federal Tax Credit for Used EVs
Since January 1, 2023, used EVs bought from licensed dealers for $25,000 or less are eligible for up to $4,000 in tax credits, which can also be transferred to the seller at the time of purchase.
Ohio also imposes a $200 annual registration fee on all-electric and plug-in hybrid vehicles, which is higher than the standard registration fee for conventional vehicles. This fee is designed to offset the loss of fuel tax revenue from the growing number of EVs on the road.
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There has been increased scrutiny around federal EV tax credits, particularly in relation to luxury vehicle purchases. Ohio electric vehicle tax audit discussions have emerged due to concerns raised by local officials, such as Senator Bernie Moreno. He argues that wealthier individuals purchasing high-end EVs like Rolls-Royce and Porsche models are disproportionately benefiting from the federal credits, calling for an audit to assess the impact and fairness of these incentives.
For the latest information on Ohio’s EV tax policies, potential audits, and available incentives, it’s recommended to check with the Ohio Department of Taxation or consult a tax professional.