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There’s no denying that electric vehicles (EVs) can be expensive with upfront costs. Fortunately, there are federal and state incentives like rebates and tax credits to make EVs more financially appealing.

But what state EV incentive programs are in place in Tennessee?

Let’s see what current incentives are available in your area and whether or not you qualify for them.

Last Updated: January 2024

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What EV Incentives Are Available in Tennessee?

Tennessee has no direct incentives for electric vehicles from the state at this time, but there are offers available from utilities to keep running costs down after you buy. We also update this post regularly, so check back to see if the situation changes and the state of Tennessee moves to make buying an EV more compelling.

Incentives for Purchasing an EV in Tennessee

Tennessee does not offer incentives for the purchase of a new electric vehicle. However, EV buyers may qualify for federal incentives if they meet income thresholds and pick the right model.

Other EV Incentives Offered in Tennessee

There are a handful of EV incentives available in Tennessee. These include:

  • The Knoxville Utility Board (KUB) gives residential customers a rebate of up to $400 for buying a Level 2 home charging station.
  • KUB and Appalachian Power also offer time-of-use (TOU) rates to reduce charging costs during off-peak hours.

Visit our EV community on Facebook to connect with other electric vehicle owners in your area and find out if specific offers are available.

Now that you know what electric vehicle incentives are available in Tennessee, what else do you need to know about making the switch to all-electric transportation?

Read our guidance on how to prepare for an EV to make sure the models you’re considering will meet your real-world driving needs!

Frequently Asked Questions

Are there incentives for purchasing an electric vehicle in Tennessee?

No, there are no state-level incentives in place when you purchase an EV in the state of Tennessee. Also, check out our picks for the best deals on EVs.

Are there additional fees for purchasing an electric vehicle in Tennessee?

Yes, there are additional fees to pay when you purchase an EV in the state of Tennessee. A $100 registration fee is charged to make up for the tax revenue lost now that you will no longer buy gasoline or diesel.

Does sales tax apply when I buy an EV in Tennessee?

Sales tax is applied to electric vehicle purchases in Tennessee at the same rate as traditional combustion vehicles. Visit our resource page to find the vehicle sales tax in Tennessee.