These US States Have The Worst EV Incentives

Electric vehicles are said to be great for the environment and a good way to cut down on gas and maintenance costs. All around the world, countries have introduced policies to help phase out gas-powered vehicles for electric ones. In the United States, there have also been deliberate efforts to encourage everyone to invest in electric vehicles through tax credits and rebates, both at the federal and state levels. A recent federal incentive that offered $7,500 tax credit on new EVs and $4,000 on used ones has effectively come to an end, but many states still have similar benefits in place for residents.

The politics surrounding electrification are one factor that has some states continuing to preserve their gasoline-focused car market, offering zero tax credits or rebates. EVs also struggle to gain sufficient demand in certain areas due to environmental factors or state-specific driving habits. With that said, here are the U.S. states with the worst EV incentives.

To start things off, North Dakota has been recognized as one of the least friendly states for electric vehicles. Vehicle owners don’t get tax incentives or rebates for buying the best new EVs or even installing home charging stations. Instead, the state actually imposes an additional registration fee of $120 a year, which further discourages EV use in the state. That’s probably why it has the second-lowest amount of EV chargers available to use among all other U.S. states.

When it comes to EV market shares, North Dakota ranks 50th in the country, and adoption of this technology in the state has been noticeably slow. Given that it’s a rural state, the aversion to electric vehicles in North Dakota is not unexpected. It also has a cold climate, which means residents often have to travel long distances under weather conditions that EVs generally don’t have the capability to perform well in.

Also lagging behind in terms of EV adoption and incentives is West Virginia, another state that offers no incentives for EV buyers. As you might expect, the state has one of the lowest EV adoption rates in the country, with just 143 EVs per 100,000 people. In 2020, West Virginia placed 44th among US states in terms of EV sales.

Apart from its lack of incentives, you’ll also need to pay $200 as an EV user each time you want to renew your registration in West Virginia. This approach is partly due to the state’s rural geography, as well as its political stance on electric vehicles; the governor of the state once described EV mandates as harmful to the state’s energy production.

The good news is that there have been recent efforts to improve EV infrastructure in West Virginia. These projects were initiated and funded by the federal government. From 2021 to 2023, the number of DC fast-charging ports in the state went up by 81%, and from 2022 to 2023, its EV sales grew by 46%, indicating that the embrace of EVs may improve.

Mississippi is stereotyped for its underdevelopment, ranking low in many national comparisons on socioeconomic issues. Turns out, it doesn’t fare well with EV technology, either. It has a very poor EV adoption rate compared to other states. A likely reason for this could be that Mississippi also doesn’t offer much in terms of EV incentives, as there isn’t any state-wide EV rebate or tax credit.

However, in addition to that, Mississippi has restricted EV manufacturers from selling vehicles directly to customers in person. While this move has been justified for the protection it affords businesses, it counts as a setback for the growth of the EV market. Unsurprisingly, Mississippi has the lowest proportion of EVs in the country, with 110 vehicles per 100,000 people.

On the bright side, residents seeking incentives may be able to access municipal-level rebates from utility companies. In particular, Mississippi Power, which operates in some cities within the state, offers rebates on EV chargers.

Arkansas, like the states before it on this list, offers no tax incentives or rebates for electric vehicles. The state was also noted as one of the worst for electric vehicle infrastructure. Recently, a bill was also introduced in Arkansas to repeal its EV infrastructure program, which could potentially worsen the EV-friendliness of the state.

In addition, purchasers have to pay expensive registration fees when purchasing both EVs and hybrid vehicles, with a cost of $200 for the former and $100 for plug-in hybrids. However, even though the state doesn’t provide any of its own, residents do have incentive options. Groups like Entergy, Ozarks Electric Cooperative, and Southwestern Electric Power Company all provide EV charger rebates for their customers and communities.

Despite the aforementioned roadblocks and Arkansas continuing to have one of the lowest adoption rates in the country, EV registrations in the state have still increased in recent times, going from 6,895 in 2024 to 8,807 as of April 2025.

Wyoming has very low EV adoption, which is unsurprising, seeing as how the state has failed to create an enabling environment for this technology. There are no state-level tax credits or rebates for EV purchases, and to worsen matters, the political climate serves as an obstacle to EV development. In 2024, a Wyoming senator introduced a bill seeking to eliminate the federal tax credit, citing that unwilling families should not have to shoulder the costs of a “climate agenda,” as mentioned by Buckrail. Other politicians have also raised concerns regarding the threat that EVs pose to the oil, gas, coal industries in the state. 

But apart from the political pushback, Wyoming’s environment is just not the best fit for EVs. The harsh winters and rural landscapes mean that EV investments won’t provide much benefit here. Regardless, seeing as how the state is a coal-producing one, EV incentives are a pretty unlikely development anyway. However, there are still utility companies in the state that offer EV charger rebates to their customers.

Next on the list is Kentucky. Although this southeastern state has been a force in America’s vehicle market, it is easily among the toughest places for EV owners to live in throughout the U.S. To start with, it has one of the worst infrastructures for electric cars. Charging stations are sparse, laws are unfavorable, and adoption is low. There are only about 820 chargers in the entire state, which amounts to 5,520 residents per charger.

As you might have guessed, there are no state-sponsored tax credits or rebates offered to EV purchasers in Kentucky. Although some utility companies offer rebates of $25 when owners enroll and an additional $5 a month, this amount is unlikely to seriously influence purchase decisions. With all these barriers in place, it appears Kentucky residents are largely reluctant to buy EVs. But for those who choose to, they will have to pay an annual registration fee of up to $25 along with a $120 annual supplemental license fee.

In Alabama, any incentives or rebates available to residents are either those sponsored by the federal government or by utility companies such as Alabama Power. There’s also a local utility provider known as Central Alabama Electric Cooperative, which allows its members to qualify for a $100 rebate on their EVs.

On the other hand, the state government imposes a fee of $203 annually for EV buyers and $103 for plug-in hybrid purchasers. This amount is separate from the registration fees, and it also increases by $3 every year. The absence of incentives, coupled with the high fees and lack of adequate infrastructure, means owning an EV in this state can pose heavy financial burdens.

Alabama has also taken some political steps against EVs. In August 2025, it joined 26 other states to challenge California’s EV mandate. The states collectively opposed a waiver that allowed California to limit the sale of gas-powered vehicles. With that in mind, it seems unlikely that Alabama would seek to support an electric-powered future for the automotive industry.

As previously mentioned, cold temperatures are known to have some impact on EV range, so it’s not unusual for regions with harsh climates to be less friendly towards EVs. For Alaska, this is very much the case. It is a remote and sparsely populated state, and that makes the use and development of EV infrastructure quite difficult — especially considering its large land area.

There are no EV rebates or tax credits sponsored by the Alaska state government. However, unlike some other states, Alaska doesn’t impose penalties for purchasers in the form of registration fees or annual ownership fees. Essentially, the state is pretty passive when it comes to EV regulation. Residents may, however, benefit from the Alaska Power and Telephone utility company, which grants a $500 rebate simply for purchasing an EV. And from the look of things, EV popularity may be growing in the state, as ownership numbers have doubled from 2018 to 2020.

Idaho also refuses to embrace EVs, which should be a given when considering its status as a rural state. For many residents, gas is a cheaper and more accessible option, and it doesn’t help that there are no incentives for those making the switch to electric. In fact, if you own an EV, you have to pay an annual fee of $140. A few years ago, there was an attempt to raise this fee even higher to $300 through a bill that was never passed.

Ironically, Idaho is one of the states that could benefit the most from a fuller embrace of EVs. It, along with Wyoming, has one of the highest rates of private vehicle ownership in the country, and this contributes negatively to the rate of traffic congestion and greenhouse emissions. EVs would lower the negative environmental impacts while simultaneously saving some money for residents that would normally be buying gasoline.

Currently, the only incentives available to Idaho residents are the rebates offered by Kootenai Electric Cooperative, which go to the purchase of a level 2 home charger. Idaho Power also offers savings for its customers when they charge their vehicles during specific hours.

Although the interest in EVs has significantly increased in South Dakota, the state has still been lagging behind in embracing them. With increasing gas prices coupled with increases in electrical vehicle range, there’s more reason for people to invest in these cars. However, South Dakota offers no state-wide incentives for individual EV purchasers while also imposing a $50-per-year for owners.

Generally, the state still has much to do in terms of EV infrastructure. Chargers, for instance, are just over 100 in number, despite the state being home to nearly a million residents. But that’s not to say the state government has done nothing to improve it. A while ago, the South Dakota Department of Transportation introduced an EV Fast Charging Plan to create more available chargers for EV owners.

The state has also provided rebates through the Volkswagen EV Charging station rebate program, which emerged from a lawsuit against Volkswagen in 2016. However, this project is limited to state bodies, organizations, and businesses, not individual consumers.

Unlike many states that have made it to this list, Hawaii appears generally receptive to the use of EVs. The tropical island state actually has one of the highest rates of EV adoption in the country. However, the state itself still doesn’t offer any incentives for EV users or purchasers. In fact, aside from registration fees, owners of electric vehicles and plug-in hybrids are expected to pay $50 annually.

The reason EV adoption has been so high in the state is actually due to several other reasons. Firstly, gasoline prices, which cost $4.72 on average, are high for most residents. Also, the state doesn’t have the challenge of long road trips that are common in most rural areas. To add to this, the warm weather in Hawaii is quite favorable for EV adoption.

In terms of the actual infrastructure and incentives, Hawaii still lags behind, leaving a gap between the demand for EVs and the structure to accommodate it. On the bright side, the state has a mission to fully embrace renewable energy by 2045 and has already taken steps toward achieving this goal.

Montana is sparsely populated, but it is a large state in terms of land area, and this makes EV adoption quite a challenge. The state government does not help much either, offering zero incentives or tax credits for going electric. If you choose to invest in an EV, you’re required to pay $260 if your car weighs less than 6,000 pounds. If it’s heavier, that fee goes as high as $380. The state also imposes annual fees for EV owners, which are also dependent on the vehicle’s weight and can reach up to $1,100.

Unlike many other states, Montana residents don’t have access to rebates provided by utility companies either. The only form of incentive residents could have been entitled to were those provided by the federal government. Montana’s challenge with EVs can also be partly attributed to its poor energy sector. As reported by Daily Montana, “[the state]’s electricity system has fallen behind,” with its grid struggling during harsh weather.

This list is made up of states that offer no EV incentives for buyers — that is, no tax credits or rebates. It also covers states that impose registration fees, further discouraging their residents from buying an EV.