V. Identify Funding for Vehicles and Charging Infrastructure
This section identifies funding mechanisms for light-duty vehicles, buses, medium- and heavy-duty vehicles and charging infrastructure. There are increasing options for local governments to fund both electric vehicles and charging infrastructure. Financing options, incentives (like rebates and tax credits), public/private programs as well as grants and vouchers have all been used to reduce or cover upfront costs.
Of note, funding these projects will require coordination across a multitude of departments that have not traditionally been involved in purchasing decisions. For example, in working out the charging infrastructure: the public services department may be involved in engaging with the local utility; the public works department may help decide where to site the equipment; the finance department may handle the purchase of the units; the information technology department may handle the wifi and software.
Funding Mechanisms Matrix
Bipartisan Infrastructure Law
In November 2021, the Bipartisan Infrastructure Law (BIL) was signed codifying the Infrastructure and Investment Jobs Act (IIJA). Consequently, the Joint Office of Energy and Transportation was created to facilitate collaboration between the U.S. Department of Energy and the U.S. Department of Transportation. The Joint Office will align resources and expertise across the two departments and will help with the implementation of programs that seek to deploy a network of electric vehicle chargers and zero-emission transit and school buses. Additionally, the Bipartisan Infrastructure Law Guidebook was released that contains information about all the programs included in the BIL-including several other electric transportation-related programs.
Inflation Reduction Act
The Inflation Reduction Act was signed into law on October 16, 2022, and is the federal government’s most significant investment in clean energy and transportation ever. The Inflation Reduction Act Guidebook was released and contains information about all the programs included in the IRA-including many electric transportation-related funding mechanisms.
A. Funding for Vehicles

1. Federal Funding and Financing for Vehicles
The Bipartisan Infrastructure Law and Inflation Reduction Act combined include billions of dollars to fund dozens of new and existing programs for states, cities, towns, and municipalities. It is especially impactful because many of the previous funding mechanisms like tax credits that were inaccessible by agencies without tax liability have been made available with the new laws.
Federal Programs:
-
Internal Revenue Service | Commercial Vehicles Tax Credit: The Inflation Reduction Act created a new credit that a city, town, or village could utilize as a direct pay tax credit of up to 30 percent when they purchase a qualifying commercial vehicle.
-
Environmental Protection Agency | Clean School Bus Program: With funding from the Bipartisan Infrastructure Law, EPA’s new Clean School Bus Program provides $5 billion (FY 2022-2026) to replace existing school buses with zero-emission and low-emission models. The program will alternate between a rebate and a grant structure.
-
Environmental Protection Agency | Clean Heavy-Duty Vehicle Program: The Inflation Reduction Act invests $1 billion to replace dirty class 6 & 7 heavy-duty vehicles with clean, zero-emission vehicles, support zero-emission vehicle infrastructure, and to train and develop workers.
-
Department of Energy | Renew America’s Schools Grant: With funding from the Bipartisan Infrastructure Law, DOE will invest $500 million to make clean energy improvements at K-12 public schools. Funds are intended for upgrades that will lower facilities’ energy costs and can include alternative vehicles, and alternative fuel vehicle infrastructure improvements.
Resources:
-
US Department of Transportation | Funding Matrix: This matrix is a list of Federal programs that can fund electric vehicles and infrastructure, sorted alphabetically by agency. The matrix notes the type of EV activities that are eligible for funding under different programs, as well as the eligible entities.
-
US Department of Transportation | Overview of Federal Funding and Financing Programs: The following provides a description of each relevant agency and how its mission relates to EV infrastructure.
-
White House | List of Inflation Reduction Act Funding Programs
-
American Climate Cities Challenge | Federal Funding Opportunities for Local Decarbonization (FFOLD): This tool helps local governments prioritize and leverage existing federal funding to advance system-wide energy transition goals—from block grants and technical assistance to competitive grants, loans, and revolving loan funds
-
World Resource Institute: How to Help Your Community Fund Electric School Buses in the US
2. State Funding For Vehicles
Several Southeast states have used Volkswagen Settlement funds to purchase electric transit and school buses. SACE tracks this data in our Report: Transportation Electrification in the Southeast. Southeast states have awarded $170 million of the $427 million allocated to them from the VW Settlement. To date, 55 percent of those awards have gone towards EVs and EV charging.
Examples:
Resource:
-
Alternative Fuels Data Center Incentives allows you to select a state and find state incentives.
Go Deeper on VW Settlement Funding
3. Local and Utility Funding for Vehicles
Your local utility’s plan or policies may encourage and provide financial support for certain types of EVs and vehicle classes.
Examples:
-
Orlando-LYNX-OUC-Proterra: With Orlando’s assistance, LYNX applied funding from a Low or No Emission (Low-No) Grant from the Federal Transit Administration (FTA) to purchase seven battery electric buses, which will be procured through Proterra Inc. Orlando Utilities Commission assisted in the procurement of charging stations and batteries to help LYNX successfully deploy the project.
B. Funding for Charging Infrastructure

1. Federal Incentives for Charging Infrastructure
The Infrastructure Investment and Jobs Act and the Bipartisan Bill and Inflation Reduction Act have several specific funding priorities earmarked for charging infrastructure and some that combine energy efficiency programs, energy justice, or greenhouse gas reduction actions with transportation and allow for charging infrastructure to be included. Guidance has not been released for all of these emerging programs and the toolkit will be updated as they become available.
Federal Programs:
-
Department Of Transportation | The National Electric Vehicle Formula Program will fund $5 billion for new EV charging along Alternative Fuel Corridors across the country. The Joint Office of Energy and Transportation (Joint Office) provides technical assistance to community stakeholders implementing charging and fueling infrastructure projects. Fact Sheet FAQ document. Standards and Requirements document. Learn more.
-
Department Of Transportation | The Charging and Fueling Infrastructure Grant Program is a competitive program that provides $2.5 billion through two $1.25 billion discretionary grant programs to support EV charger deployment. The Corridor Charging Grant Program ($1.25 billion) will strategically deploy publicly accessible EV charging infrastructure along designated Alternative Fuel Corridors. The Community Charging Grant Program $1.25 billion will strategically deploy publicly accessible EV charging infrastructure in communities. Both the Community and Corridor Programs have an 80% cost share, meaning awardees must match the remaining 20% of the project. Recording of FHWA CFI Webinar held 3.22.23 Passcode: i#l2b6UV. Slides from the webinar
-
Environmental Protection Agency | Clean Heavy-Duty Vehicle Program
-
Internal Revenue Service | Alternative Fuel Infrastructure Tax Credit
-
Federal Highway Administration | Neighborhood Access and Equity Grant Program
-
Environmental Protection Agency | Greenhouse Gas Reduction Fund
-
Environmental Protection Agency | Environmental and Climate Justice Block Grants
Resources:
-
US Department of Transportation | Funding Matrix This matrix is a list of Federal programs that can fund electric vehicles and infrastructure, sorted alphabetically by agency. The matrix notes the type of EV activities that are eligible for funding under different programs, as well as the eligible entities.
-
White House | List of Inflation Reduction Act Funding Programs
2. State Incentives for Charging Infrastructure
Several Southeast states have used Volkswagen Settlement funds to install EV charging stations. SACE tracks this data in our Report: Transportation Electrification in the Southeast. Southeast states have awarded $170 million of the $427 million allocated to them from the VW Settlement. To date, 55 percent of those awards have gone towards EVs and EV charging. In addition to those funds, some states offer tax credits for EVSE.
Examples:
-
Georgia: Electric Vehicle Supply Equipment (EVSE) Tax Credit
-
Tennessee: Vehicle Emissions Reduction and Electric Vehicle Supply Equipment (EVSE) Project Funding
Resources:
-
Alternative Fuels Data Center Incentives allows you to select a state and find state incentives.
3. Local Incentives for Charging Infrastructure
Municipalities can offer a rebate for the equipment and labor costs associated with the installation of both public and private EV charging stations. Municipalities can direct residents toward grant opportunities such as the Charge Up! program, which covers up to 50% of EVSE costs. The funds come from pollution recovery fees.
Examples:
-
Sarasota County, FL: Charge Up! Program
4. Utility Incentives for Charging Infrastructure
Utilities across the region are increasingly investing in charging infrastructure. Utility spending is tracked by SACE in our Electrification in the Southeast report. Some utilities offer rebates on the charging equipment or offer make ready credits.
Resource:
-
Alternative Fuels Data Center Incentives allows you to select a state and find utility incentives.
TOOLKIT CONTENTS
I. Create Transportation Electrification Plans
II. Deploy Light-Duty Municipal Fleets
III. Support Electric Buses and Medium- and Heavy-Duty Truck Deployment
IV. Deploy Electric Vehicle Charging Access and Infrastructure
V. Identify Funding for Vehicles and Charging Infrastructure
VI. Establish Education and Outreach Initiatives
VII. Promote Economic Development by Investing in Electric Transportation
VIII. Center Equitable Electric Transportation