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Washington State reinstates its electric vehicle tax incentive, report says

The Evergreen state is moving to get more clean vehicles on its roads in a hurry and it's hoping that reviving its tax incentive will help.

2018 Nissan Leaf long-term car in winter
The Nissan Leaf is one of many new vehicles that will qualify for Washington's $2,500 state sales tax incentive when it kicks in in August.
Chris Paukert/Roadshow

Hey, we have some good news for you if you're shopping for an electric vehicle in Washington state. The state EV sales tax incentives which originally expired last year have just been resurrected and are set to take effect on Aug. 1, according to a report published Thursday by Automotive News.

Washington Governor Jay Inslee reinstated the sales tax credit as part of a series of four pieces of clean energy legislation. The governor hopes that these bills will push the number of alternative fuel vehicles on the road there to 50,000 by next year.

The way the tax credits work in the Evergreen State will be a little different than the federal tax credit you're used to hearing about. In Washington, new vehicles are subjected to a sales tax of 6.8%. With this tax credit, you'd be getting a rebate on the sales tax you pay up to $2,500 on new electric vehicles that cost less than $45,000.

What's even cooler is that buyers of used EVs can get in on the fun too. They can receive a rebate of up to $1,600 on the purchase of used electric cars that retail for under $30,000. When you consider how reasonable prices typically are for used EVs, that seems like a pretty sweet deal.