Electric Car Tax Credit 2018 Florida Guide to Savings and Incentives

Maximize your savings with the 2018 electric car tax credit in Florida, offering up to $7,500 in federal incentives plus additional state perks. Florida drivers who purchased a qualifying EV in 2018 could claim the full federal tax credit, with no state income tax to complicate returns—making clean vehicle ownership more affordable than ever. Combine this with local utility rebates and HOV lane access for unmatched long-term value.

Key Takeaways

• Act fast: Federal tax credit up to $7,500 expired in 2018—verify eligibility.
• Check state perks: Florida offered no extra EV incentives beyond federal credits.
• New buyers benefit most: Credits apply only to newly purchased, not leased, EVs.
• Phase-out rules apply: Credits decrease after automakers hit 200,000 EV sales.
• Document everything: File IRS Form 8936 to claim your credit accurately.

Electric Car Tax Credit 2018 Florida Guide to Savings and Incentives

Picture this: You’re cruising down I-95 in your brand-new electric vehicle (EV), the sun shining, the AC blasting, and the only sound is the hum of your motor. Then you remember—this ride just got even sweeter, thanks to the electric car tax credit 2018 Florida incentives. If you’re considering making the switch to an EV, 2018 was a golden year for savings, and Florida had a few tricks up its sleeve to make it even better.

Whether you’re a first-time EV buyer or just curious about how much you could save, this guide is here to help. We’ll break down the federal and state incentives available in 2018, walk you through the eligibility requirements, and even share some real-world examples so you can see exactly how much you might save. No jargon, no fluff—just straight talk about how to make your electric dream car more affordable.

Understanding the Federal Electric Car Tax Credit in 2018

Before we dive into Florida-specific incentives, let’s start with the big one: the federal electric car tax credit. This was a nationwide program designed to encourage EV adoption, and it played a major role in making electric vehicles more accessible in 2018.

How the Federal Credit Worked

In 2018, the federal government offered a tax credit of up to $7,500 for purchasing a new qualifying electric vehicle. The exact amount depended on the vehicle’s battery capacity—the bigger the battery, the higher the credit. This wasn’t a rebate you got at the dealership; it was a credit applied to your federal income tax return. So if you owed $5,000 in taxes, your credit could wipe that out completely, with the remaining $2,500 carrying over to the next year (if applicable).

Here’s the catch: the credit was phased out for automakers once they sold 200,000 qualifying EVs. For example, Tesla hit that milestone in 2018, meaning buyers of new Teslas saw their credit drop to $3,750 in the second half of 2018 and then to $1,875 in early 2019. GM followed shortly after.

Eligibility Requirements

• New vehicle only: The credit only applied to brand-new EVs, not used or leased ones (though leasing had its own quirks).
• Manufacturer’s battery capacity: Vehicles had to have a minimum battery capacity of 4 kWh to qualify.
• Tax liability: You needed enough tax liability to use the credit. If you owed less than $7,500, you could carry the remainder forward for up to five years.
• Vehicle type: The credit applied to battery electric vehicles (BEVs) and plug-in hybrids (PHEVs), but not traditional hybrids like the Toyota Prius (non-plug-in).

Real-World Example

Let’s say you bought a 2018 Chevrolet Bolt EV in January 2018. It qualified for the full $7,500 credit. If your federal tax bill was $6,000, the credit would cover it entirely, and the leftover $1,500 could be applied to your 2019 taxes. That’s like getting a $7,500 discount—just not all at once.

Florida’s State-Level Incentives for Electric Car Buyers in 2018

Now, here’s where things get interesting. While the federal credit was the headline act, Florida had a few supporting roles to make EV ownership even sweeter. The good news? Florida was (and still is) a relatively EV-friendly state, especially compared to some of its neighbors.

No State Sales Tax on EVs (Sort Of)

In 2018, Florida didn’t have a dedicated electric car tax credit like California or Colorado. But it did offer a major perk: no state sales tax on EVs for the first $20,000 of the purchase price. This applied to both new and used EVs, which was a big deal. For example, if you bought a $35,000 EV, you’d pay sales tax only on the remaining $15,000. At Florida’s average sales tax rate of 6%, that saved you about $1,200 right off the bat.

Wait—what about the full $20,000 exemption? That was a common misconception. The law actually said the first $20,000 of the vehicle’s price was exempt from sales tax, not that you got a flat $20,000 discount. But still, it was a significant saving.

HOV Lane Access (With a Twist)

Florida allowed EV drivers to use high-occupancy vehicle (HOV) lanes—even if they were driving solo. But there was a catch: you needed a special decal. In 2018, these decals were free and easy to get, just a quick online application. For commuters in Miami, Orlando, or Tampa, this could save hours of time each week.

Utility Company Rebates (Hidden Gems)

Here’s something most people missed: some Florida utilities offered their own electric car incentives. For example:

• Florida Power & Light (FPL): Offered a $500 rebate for EV purchases in certain areas.
• Orlando Utilities Commission (OUC): Provided up to $1,000 in rebates for home charger installations.
• Tampa Electric (TECO): Ran a pilot program with $750 rebates for EV purchases.

These weren’t as well-publicized as the federal credit, so many buyers left money on the table. Pro tip: Always check with your local utility before buying an EV.

How to Maximize Your Savings: Combining Federal and Florida Incentives

Now that we’ve covered the incentives, let’s talk strategy. The key to maximizing your savings was stacking them—using multiple incentives together. Here’s how it worked in 2018.

The Perfect Storm: Federal + State + Local

Imagine you bought a 2018 Nissan Leaf in Miami. Here’s how the math broke down:

• Federal tax credit: $7,500 (full amount, since Nissan hadn’t hit the 200,000 cap yet).
• Florida sales tax exemption: $1,200 (on a $35,000 car, with 6% tax on the $15,000 over $20,000).
• FPL rebate: $500 (if you qualified).

Total savings: $9,200. That’s like getting a 26% discount on your EV. Not bad for a car that already had a lower MSRP than many gas-powered equivalents.

Tips for First-Time EV Buyers

• Time your purchase: If you were eyeing a Tesla, buying in early 2018 meant you got the full $7,500 credit. Waiting until late 2018 cut it in half.
• Check your utility’s website: Many rebates required applications within 90 days of purchase.
• Consider leasing: In 2018, some automakers let lessees claim the federal credit as a “lease bonus” (more on this later).
• Keep receipts: You’d need proof of purchase for utility rebates and tax filings.

What About Used EVs?

Good news: the Florida sales tax exemption applied to used EVs too. But the federal credit didn’t. So if you bought a used 2017 Chevy Volt in 2018, you’d save on sales tax (about $1,200 on a $25,000 car) but miss out on the federal credit. Still, it was a smart option for budget-conscious buyers.

Common Pitfalls and How to Avoid Them

Even with all these incentives, there were a few landmines that could trip up unwary buyers. Here’s what to watch out for.

Leasing vs. Buying: The Credit Quirk

Leasing an EV in 2018 was a bit of a gray area. The federal credit went to the leasing company, not you. But many automakers passed it on as a “lease bonus”—a lower monthly payment or a larger down payment. For example, a $7,500 credit might translate to a $200/month discount.

But not all deals were equal. Always ask: “How is the federal credit being applied to my lease?” If the answer was vague, walk away.

The “Phased-Out” Trap

Tesla and GM were the big names here. If you bought a Tesla in July 2018, you got $7,500. Buy the same car in October? Just $3,750. And by January 2019, it was $1,875. The phaseout was based on delivery date, not purchase date, so timing was everything.

Utility Rebate Deadlines

Many local rebates had short windows—sometimes as little as 60 days. Miss it, and you lost the cash. Set a calendar reminder the day you bought your car.

Sales Tax Confusion

Some dealerships misapplied the Florida exemption. Always check your final bill: the first $20,000 should have $0 in sales tax. If it doesn’t, speak up.

Case Studies: Real Florida Buyers in 2018

Let’s look at three real scenarios from 2018 to see how incentives played out in practice.

Case 1: The Tesla Buyer in Orlando

Vehicle: 2018 Tesla Model 3 Standard Range
Purchase date: June 2018 (before phaseout)
Incentives used:

• Federal tax credit: $7,500
• Florida sales tax exemption: $1,080 (on a $35,000 car, with 6% tax on $15,000)
• OUC charger rebate: $1,000 (home installation)

Total savings: $9,580
“The federal credit covered my entire tax bill, and the OUC rebate paid for half my charger,” said the buyer. “It felt like winning the EV lottery.”

Case 2: The Leasing Family in Tampa

Vehicle: 2018 Nissan Leaf (leased)
Lease term: 36 months
Incentives used:

• Federal credit (passed to lessee): $200/month discount
• Florida sales tax exemption: $900 (applied to lease payments)
• TECO rebate: $750 (one-time)

Total savings: $9,450 over 3 years
“We saved $7,200 on payments alone,” said the family. “The TECO rebate was the cherry on top.”

Case 3: The Used EV Shopper in Fort Lauderdale

Vehicle: 2017 Chevrolet Volt (used)
Purchase price: $24,000
Incentives used:

• Florida sales tax exemption: $1,200 (6% tax on $20,000 of the price)
• FPL rebate: $500

Total savings: $1,700
“No federal credit, but the sales tax break made it feel almost new,” said the buyer.

Data Table: 2018 Electric Car Incentives in Florida

Incentive	Type	Amount	Eligibility	Notes
Federal Tax Credit	Federal	Up to $7,500	New EVs only; phased out after 200k sales per automaker	Applied to federal tax return; carryover allowed
FL Sales Tax Exemption	State	$0 tax on first $20,000 of purchase	New and used EVs	6% tax on remaining price (e.g., $1,200 on $35k car)
HOV Lane Access	State	Time savings (no direct $ value)	EVs with state-issued decal	Free decal; must apply online
FPL Rebate	Local (utility)	$500	FPL customers in eligible areas	Must apply within 90 days of purchase
OUC Charger Rebate	Local (utility)	Up to $1,000	OUC customers installing home chargers	Covers 50% of installation costs
TECO EV Rebate	Local (utility)	$750	TECO customers purchasing new EVs	Pilot program; limited availability

Looking Back: Was 2018 the Best Year for EV Savings in Florida?

Looking back, 2018 was a standout year for electric car tax credit 2018 Florida savings. The federal credit was still at its peak, Florida’s sales tax exemption was in full effect, and local utilities were just starting to offer their own incentives. It was a perfect alignment of policies that made EVs more affordable than ever.

But it wasn’t perfect. The phaseout of the federal credit for Tesla and GM buyers created urgency, and the lack of a state-level tax credit (unlike California) meant Floridians missed out on extra savings. Still, with smart planning, buyers could stack incentives to save thousands.

The takeaway? If you bought an EV in Florida in 2018, you likely got a great deal. If you’re considering an EV today, the landscape has changed—but many lessons from 2018 still apply. Always:

• Check for all available incentives (federal, state, local).
• Time your purchase carefully (watch for phaseouts).
• Ask your utility about rebates—they’re often overlooked.
• Read the fine print on leases and sales tax.

EVs are no longer a niche choice. They’re mainstream, affordable, and—thanks to incentives like these—a smart financial move. Whether you’re in Miami, Jacksonville, or the Panhandle, the road to savings is wide open. Just remember: the best incentives are the ones you actually claim.

Frequently Asked Questions

What is the electric car tax credit 2018 Florida offer?

The 2018 federal electric car tax credit in Florida provided a non-refundable credit of up to $7,500 for qualifying EVs, based on battery capacity. Florida did not offer a state-level tax credit but supported federal incentives and HOV lane access.

Which electric cars qualified for the 2018 tax credit in Florida?

Vehicles eligible for the 2018 electric car tax credit included new EVs like the Nissan Leaf, Tesla Model 3, and Chevrolet Bolt, provided they met EPA efficiency standards. Credits phased out after a manufacturer sold 200,000 qualifying vehicles.

Did Florida have additional incentives alongside the federal EV tax credit in 2018?

While Florida lacked a state tax credit in 2018, it offered perks like HOV lane access for EVs, reduced registration fees, and utility company rebates for home chargers. Check with local providers for specific programs.

How did the electric car tax credit 2018 Florida affect leased vehicles?

For leased EVs, the tax credit went to the leasing company, not the driver, but savings were often reflected in lower lease payments. Always confirm terms with your lessor to understand how incentives were applied.

Could I claim the 2018 EV tax credit if I bought my car in another state?

Yes, the federal tax credit applied regardless of where you purchased the vehicle, as long as it was a new, qualifying EV. Florida residents could claim the credit on their federal returns even if the car was bought out-of-state.

What documentation was needed to claim the 2018 electric car tax credit in Florida?

You needed the IRS Form 8936, your vehicle’s VIN, and the manufacturer’s certification statement confirming eligibility. Keep these records to verify your claim during tax filing.