A variety of state and federal incentives can significantly reduce the cost for Hawaii motorists and businesses looking to purchase electric vehicles and charging equipment.

But officials are advising anyone interested in going electric not to drag their feet because the window of opportunity will begin to close for some of the incentives at the end of this year.

When federal and state incentives are added together, individuals can save up to $13,500 on the cost of an electric vehicle and charging station. For businesses installing charging stations, the savings can total $30,000 or more.

"We’re anxious for people to understand that some of these incentives will be expiring," said Kristen Helsel, vice president for EV solutions at AeroVironment Inc. The company was contracted by Nissan to install home-charging stations in Hawaii for the Leaf electric vehicle. California-based AeroVironment also received one of six government grants totaling $2.6 million to subsidize the installation of charging stations in public locations in Hawaii.

The first incentive scheduled to be phased out at the end of this year is the federal Alternative Fuel/EV Infrastructure Tax Credit. The program provides a tax credit of up to $1,000 for the installation of residential fueling or charging equipment, and a credit of up to $30,000 for equipment installations by businesses. To qualify for the tax credit, the equipment has to be installed by Dec. 31.

Businesses can combine the federal tax credit with an incentive under the state’s EV Ready Grant program that provides a subsidy for the installation of charging equipment in locations that can be accessed by the general public, such as shopping malls, hotels and office buildings. State officials say the grant program is expected to provide 220 chargers at 120 sites statewide.

"It is a substantial subsidy. It can take a significant amount off the bottom line for businesses and even more if they can get it in before the end of the year," Helsel said. AeroVironment received the largest allotment under the grant, $820,000.

Businesses also need to remember that a new state law requires all parking facilities that are open to the public and have at least 100 spaces to have at least 1 percent of their spaces equipped with a charging unit, said Margaret Larson, vehicle specialist at the state Energy Office.

AeroVironment already has committed about 50 percent to 60 percent of its grant funds, Helsel said. Funds, which can cover up to 30 percent of the cost of a charging station, are available on a first-come, first-served basis. The program expires at the end of March. More information is available at evsolutions.avinc.com/contact/alohaev.

Officials from California-based Better Place, which received $582,000 in the EV Ready Grant program, say the company is on track to install charging stations at 40 locations around the state. The initial sites include Enterprise Rent-a-Car’s location at Honolulu Airport, the Hilton and Starwood hotels, and the University of Hawaii.

Another recipient of EV Ready Grant funds, GreenCar Hawaii, last week launched the first "car share" service on Oahu with four Nissan Leaf electric vehicles that will be available to visitors and local residents for hourly and daily rentals. The cars are based at the DoubleTree Alana Waikiki Hotel, where GreenCar Hawaii installed two charging stations.

As charging stations are opened in Hawaii, they will be listed on a U.S. Department of Energy website: www.afdc.energy.gov/afdc/locator/stations. The site so far lists 18 charging stations in the state.

EV options

There is an array of state and federal incentives available to homeowners and businesses for the purchase of electric vehicles and charging equipment.

RESIDENTIAL

Hawaii EV Ready Rebate

» $4,500 maximum up to 20 percent toward the purchase of a qualifying EV, continues until Jan. 31 or until funds are exhausted

» $500 maximum up to 30 percent toward the purchase of qualifying EV charging station and installation, continues until Jan. 31 or until funds are exhausted

Federal tax credits

» $1,000 maximum up to 30 percent toward the purchase of qualifying EV charging equipment, expires Dec. 31

» $7,500 maximum toward the purchase of a qualifying EV, phases out based on number of EVs sold

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Hawaii EV Ready Rebate

» $4,500 maximum, up to 20 percent toward the purchase of qualifying EV, continues until Jan. 31 or until funds are exhausted

» $500 maximum, up to 30 percent toward the purchase of EV charging station and installation, continues until Jan. 31 or until funds are exhausted

Hawaii EV Ready Grant

» Credit toward the purchase of publicly accessible qualifying EV charging equipment, expires March 31. Amount of credit varies with installer.

Federal EV infrastructure tax credit

» $30,000 maximum, up to 30 percent toward the purchase of EV charging station and installation, expires Dec. 31