Electricity Laws and Incentives in Pennsylvania

The list below contains summaries of all Pennsylvania laws and incentives related to electricity.

State Incentives

Alternative Fuel Tax Exemption for Electric Vehicles (EVs)

Beginning January 1, 2025, EVs that are subject to the annual EV registration fee are exempt from the Alternative Fuels Tax.

(Reference Senate Bill 656, 2024)

Alternative Fuel Vehicle (AFV) Rebate

The Pennsylvania Department of Environmental Protection (DEP) AFV Program offers rebates to assist eligible residents with the cost of the purchase or lease of new or qualifying pre-owned AFVs, including all-electric vehicles (EVs), plug-in hybrid electric vehicles (PHEVs), compressed natural gas (CNG) vehicles, electric motorcycles, and propane vehicles. Applicants must meet income eligibility requirements for the program and eligible AFV purchase price not exceed $45,000. Rebates are available in the following amounts:

Vehicle Type Rebate Amount
EV (new or pre-owned) $3,000
PHEV (new or pre-owned) $1,500
CNG, Propane, and Electric Motorcycle (new or pre-owned) $500

An additional rebate of $1,000 is available for all applicants that meet the low-income requirement, as defined by the U.S. Department of Health and Human Services. Applications much be received within six months of vehicle purchase. Rebates are awarded on a first-come, first-served basis. For more information, including forms and detailed requirements and restrictions, see the DEP AFV Rebates website.

(Reference Title 73 Pennsylvania Statutes, Chapter 18E, Section 1647.3)

Point of Contact
Joshua Dziubek
Energy Program Specialist
Pennsylvania Department of Environmental Protection, Energy Programs Office
Phone: (717) 705-0374
jdziubek@pa.gov

Alternative Fuels Incentive Grant (AFIG) Program

The AFIG Program provides financial assistance for innovative, advanced fuel and vehicle technology projects. Projects that result in product commercialization and the expansion of Pennsylvania companies are favored in the selection process. Eligible applicants include school districts, municipal authorities, political subdivisions, non-profits, corporations, limited liability companies or partnerships incorporated or registered in the Commonwealth. Projects must support:

  • Incremental cost expenses relative to retrofitting vehicles to operate on alternative fuels;
  • Incremental cost expenses to purchase alternative fuel vehicles;
  • The cost to purchase and install the necessary fleet- or home-refueling equipment for alternative fuel vehicles; or,
  • The cost to perform research, training, development and demonstration of new applications or next-phase technology related to alternative fuel vehicles.
Eligible applicants include school districts, municipal authorities, political subdivisions, non-profits, corporations, limited liability companies or partnerships incorporated or registered in the Commonwealth. Priority will be given to businesses located in Pennsylvania; zero emission vehicle projects; light- and medium-duty fleet refueling infrastructure projects; renewable natural gas and infrastructure projects; projects located in environmental justice areas; and minority-, veteran-, or woman-owned businesses. For more information, including forms and detailed requirements and restrictions, see the AFIG Program website.

(Reference Title 73 Pennsylvania Statutes, Chapter 18E, Section 1647.3)

Points of Contact
Joshua Dziubek
Energy Program Specialist
Pennsylvania Department of Environmental Protection, Energy Programs Office
Phone: (717) 705-0374
jdziubek@pa.gov
Michelle Ferguson
Energy Program Specialist
Pennsylvania Department of Environmental Protection, Energy Programs Office
Phone: (570) 327-3783
miferguson@pa.gov

Diesel Emission Reduction Grants

The Pennsylvania Department of Environmental Protection (DEP) administers the Pennsylvania State Clean Diesel Grant Program for diesel emission reduction projects. Projects are funded by Pennsylvania’s portion of the Volkswagen Environmental Mitigation Trust and the U.S. Environmental Protection Agency’s Diesel Emission Reduction Act (DERA) Program. For more information, including funding availability, see the DEP Driving PA Forward website.

Heavy-Duty Emission Reduction Grants

The Pennsylvania Department of Environmental Protection (DEP) offers grants for the repower or replacement of ferries, tugboats, and freight switcher locomotives with any new U.S. Environmental Protection Agency or California Air and Resource Board-certified diesel, alternative fuel, or all-electric equivalent. For more information, see the DEP Driving Pennsylvania Forward website.

Off-Road Electric Equipment Grants

The Pennsylvania Department of Environmental Protection (DEP) offers grants for the replacement of airport ground support equipment, forklifts, and port cargo handling equipment with an all-electric equivalent. For more information, see the DEP Driving Pennsylvania Forward website.

Pennsylvania's National Electric Vehicle Infrastructure (NEVI) Planning

The U.S. Department of Transportation’s (DOT) NEVI Formula Program requires the Pennsylvania Department of Transportation (PennDOT) to submit an annual EV Infrastructure Deployment Plan (Plan) to the DOT and U.S. Department of Energy (DOE) Joint Office of Energy and Transportation (Joint Office), describing how the state intends to distribute NEVI funds. The submitted plans must be established according to NEVI guidance.

For more information about Pennsylvania’s NEVI planning process, see the PennDOT Plan website. To review Pennsylvania’s NEVI plan, see the Joint Office State Plans for EV Charging website.

Laws and Regulations

Alternative Fuels Tax

Alternative fuels used to propel vehicles of any kind on public highways are taxed at a rate determined on a gasoline gallon equivalent basis. For more information, including applicable tax rates, see the Pennsylvania Department of Revenue Motor and Alternative Fuel Taxes website. Certain exemptions apply.

(Reference Title 75 Pennsylvania Statutes, Part VI, Chapter 90, Section 9004)

Electric Vehicle (EV) Fee

Beginning January 1, 2025, in addition to standard vehicle registration fees, EV owners must pay an annual fee of $200, and plug-in hybrid electric vehicle owners must pay an annual fee of $50.

(Reference Senate Bill 656, 2024)

Medium- and Heavy-Duty (MHD) Zero Emission Vehicle (ZEV) Deployment Support

California, Colorado, Connecticut, District of Columbia, Hawaii, Maine, Maryland, Massachusetts, Nevada, New Jersey, New York, North Carolina, Oregon, Pennsylvania, Rhode Island, Vermont, Virginia, and Washington (signatory states) signed a memorandum of understanding (MOU) to support the deployment of MHD ZEVs through involvement in a Multi-State ZEV Task Force (Task Force).

In July 2022, the Task Force published a multi-state action plan to support electrification of MHD vehicles. The action plan includes strategies and recommendations to accomplish the goals of the MOU, including limiting all new MHD vehicle sales in the signatory states to ZEVs by 2050, accelerating the deployment of MHD ZEVs, and ensuring MHD ZEV deployment also benefits disadvantaged communities.

For more information, see the MHD ZEVs: Action Plan Development Process website.

Neighborhood Electric Vehicle (NEV) Definition

A NEV is defined as a four-wheeled electric vehicle that has a maximum speed greater than 20 miles per hour (mph) but not more than 25 mph. All vehicles must comply with the safety standards established in Title 49 of the U.S. Code of Federal Regulations, section 571.500. Drivers must maintain a defined level of insurance coverage for all registered vehicles.

(Reference Title 75 Pennsylvania Statutes Part I, Chapter 1, Section 102 and Part II, Chapter 17, Subchapter H, Section 1788)

Public Utility Definition

A person, corporation, or entity that owns or operates electric vehicle (EV) charging station that is open to the public is not defined as a public utility. Each electric distribution company must address third-party owned and operated EV charging stations in its tariff.

(Reference Title 52 Pennsylvania Code 69.101 and 69.3501)

State Electric Vehicle (EV) Acquisition Requirements

Pennsylvania state agencies must replace 25% of their passenger car fleets with EVs by 2025 and evaluate fleet utilization for vehicle miles traveled reductions. Agencies must collectively reduce all energy consumption by 3% annually, with a 21% reduction from a 2017 baseline by 2025. To meet these goals, the Governor’s Green Government Council was reestablished to work with state agencies to oversee the development and implementation of procedures to reduce greenhouse gas emissions and energy usage.

(Reference Executive Order 2019-01, 2019)

More Laws and Incentives

To find laws and incentives for other alternative fuels and advanced vehicles, search all laws and incentives.