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Newsletter * Topics * Essentials * Services * Related Sites Close * Connected Fleets * Autonomous Technology * Shared Mobility * Electric Vehicles * Fleet Management as a Service * Smart Cities * News * Blogs * Statistics * Photos * Videos * Whitepapers * Webinars * Events * Jobs * Advertise * Contact Us * Privacy Policy * Terms and Conditions * Cookie Settings * Newsletter Sign Up * Marketing Solutions Log In Create an Account * * Nov. 6-8, 2024 San Diego, CA Search Search * News * Photos * Videos * Blogs * Advertise * Webinars * Statistics * Events * Whitepapers * Directory * * Nov. 6-8, 2024 San Diego, CA Newsletter Search Close Menu Search Newsletter Log In * * Connected Fleets * Autonomous Technology * Shared Mobility * Electrification * Fleet Management as a Service * Smart Cities * RESOURCE CENTER LATEST INDUSTRY UPDATES AND VIDEOS * EDUCATION CENTER UPCOMING AND ON-DEMAND WEBINARS ELECTRIFICATION IN THE SWITCH TO EVS, MANY ARE LEAVING BIG MONEY ON THE TABLE December 21, 2023 • By Richard Hall • Bookmark + There are more than 800 EV-related incentives, from numerous governmental agencies and both public and private utilities. Navigating them is a byzantine endeavor — but resources are available. Photo: Automotive Fleet MEET LEADING ELECTRIC VEHICLES & CHARGING SOLUTION PROVIDERS Mullen Automotive View Profile Inspiration Mobility View Profile Envirotech Vehicles View Profile Commercial fleet operators today are confronting one of the most critical challenges they have faced in decades. In the past few years, legislators have passed laws forcing them to electrify their fleets. Using the "carrot and stick" approach, much of the legislation surrounding electric vehicles includes both stringent requirements and generous incentives. Often, fleet managers are so frightened by the requirements that they miss out on the incentives. In this new era of imposed electrification, being unaware of the incentives that can soften the financial blow the switch entails is often a million-dollar mistake. GRANTS AND INCENTIVES Here is a very telling real-life example: At a recent conference, one fleet manager was shocked to learn that their fleet management company could have received $7,500 for each of the nearly 100 electric passenger vehicles they had leased. Quickly running the math, she exclaimed her company was out of pocket to the tune of over $600,000. While $600,000 in “free money” is a big number, it only represents the federal electric vehicle purchase incentive. The discussion that ensued revealed that the “pyramid” of available incentives could have been extended to include not just additional incentives from utilities, counties, and cities for those passenger vehicles, but far more sizable amounts for larger vehicles. Related: Can the Electric Grid Sustain the EV Revolution? Beyond that, more available incentive money could have provided thousands of additional dollars to cover the costs of buying and installing the charging equipment required to service the new EV fleet. ROOKIE MISTAKES While failing to take advantage of a million dollars in incentive money might appear to be an egregious “rookie mistake,” the simple fact is it is happening every day. Why? In managing the transition from a conventionally fueled fleet to an EV fleet virtually everyone is a rookie. There are over 800 electric vehicle-related incentives, and they are offered not just by the federal government but also by states, counties, cities, and governmental agencies such as air quality management districts. In addition, both public and private utilities offer incentives, grants, and rebates designed to promote the switch from internal combustion engine (ICE) vehicles to electrics. But navigating these free-flowing rivers and finding these incentives is a byzantine operation. Given the almost stupefyingly difficult task of identifying opportunities, it is not surprising that fleet managers are leaving money on the table, often without even knowing it is happening. To illustrate, let’s look at the various incentives available for electric vehicles across federal, state, and local levels. On the most basic level are the federal purchase incentives, a $7,500 tax credit available to individual consumers who purchase qualifying EVs. In the past 18 months, this fairly simple-to-grasp credit has become significantly more complicated. It now includes specific criteria such as income thresholds, assembly location, and mineral sourcing requirements for batteries. Some EVs don’t qualify, and some consumers don’t qualify. On the commercial side, companies purchasing EVs can receive a $7,500 tax credit without any of the consumer-specific qualifying criteria. For larger vehicles over 14,000 pounds, the credit can go up to $40,000. Regionally, many air quality management districts such as the Bay Area Air Quality Management District’s Carl Moyer Program for School Buses provide substantial incentives, such as over $500,000 per bus for school buses or $120,000 for each new class 8 Freightliner eCascadia tractor. With many of these incentives, potential beneficiaries need to track funding availability because these incentives often operate on a limited, first-come-first-served basis. Your company might qualify, but if the incentive is oversubscribed you might receive a fraction of what you expected, or you may be completely out of luck. BEYOND VEHICLES Beyond vehicle-purchase incentives, grants and credits can also help finance ancillaries that often can equal or exceed the cost of the vehicle. For example, incentives exist for charging equipment, including federal tax credits for consumers and grants from utilities towards the purchase and installation of Level 2 and DC fast chargers. The funds available typically range from a couple of hundred dollars to several thousand dollars. There's also a focus on federal investment in communities designated as disadvantaged or “Justice40 communities," aiming to direct more incentives towards these areas. The challenge of monitoring these incentives is often beyond a fleet manager's ability to track them, much less to jump the procedural hoops to capitalize on them. Those responsible for managing fleets — and OEM vehicle and charger sales teams – simply don't have time to search for and read through pages of FAQs, terms, and conditions. The good news is that utilities, OEMs, and fleet management companies are starting to offer tools that quickly and painlessly identify a list of incentives applicable to a specific electrification project. A few of these such as GM / BrightDrop’s TCO tool even calculate the likely incentive amounts and roll them into a "cost of ownership" that compares the total cost of ownership of continuing conventional diesel or gasoline vehicles with operating electric vehicles. Utilities and OEMs need not devote significant staff to finding incentives or building complex cost comparison models. They can use off-the-shelf products such as J.D. Power’s EV Fleets and Incentive Dashboard, which appears as a “white label” tool on the public and private websites of utilities and automakers. So, the advice is don’t make a rookie mistake. You do not want to let a million dollars slip through your fingers. By seeking out the available tools created by experts in EV incentives, you can avoid the agony of defeat. About the Author: Richard Hall is J.D. Power’s Head of ZappyRide EV Products. He is based in Billings Montana. More News: Top Technology Trends in Fleet Electrification for 2024 Originally posted on Automotive Fleet Read more about J.D. Power Fleet electrification Fleet Incentives cost savings 3 COMMENTS Comment Please enter a comment. Name Please enter your name. Email Address Please enter a valid email address. Please validate that you are human. Comments are moderated and may not appear for 24 hours or more. Comments that include personal attacks or slurs, hate speech, demonstrably false information, excessive profanity, or that are thinly veiled promotions for a product, will not be approved. Post * * 1. * Schwartz * December 21, 2023 @ 11:11 AM This is quite frankly disgusting. The government forces (via mandates) fleets to electrify and then gives out millions of dollars in incentives of taxpayer dollars for doing so. Compound this with GM buying out Buick dealers because they know it won't work, and the EPA requiring 50% new vehicle sales to be EV by 2030. Flaming train wreck incoming. See all comments Newsletter We respect your data and privacy. By clicking the submit button below, you are agreeing with Bobit Business Media’s Privacy Policy and this outlined level of consent. Email Submit * View the latest: * eNews RELATED CONTENT HOW TO MAKE EV ENERGY BILLS COST LESS THAN FUEL BILLS FIRST STEPS TO INSTALLING BATTERY-INTEGRATED CHARGERS FOR ELECTRIC VEHICLES FORD PRO REVEALS NEW SERIES 2 AC CHARGER FOR EVS FLEET FORWARD: THE TOUR ANNOUNCES NY METRO AGENDA RELATED WHITEPAPER EV BUYING GUIDE Download More ELECTRIFICATION * ARTICLE * * * Bookmark + MANAGING PAYMENTS IN A MIXED ENERGY FLEET Integrating EVs into traditional fleets comes with a new set of challenges. We have the insights and strategies to manage fleet payments in a mixed environment. * ARTICLE * * * Bookmark + WHAT IS OCPP AND WHY DOES IT MATTER TO FLEETS? Fleet charging introduces new challenges for fleet managers. EV fleet operators may benefit from implementing Open Charge Point Protocol. * NEWS * * * Bookmark + PLENTY OF ELECTRIC VEHICLES AVAILABLE FOR SALE EV inventory is stacking up on dealer lots as consumers spooked by high prices and sparse charging stations second-guess or resist buying them. * NEWS * * * Bookmark + AT&T, RIVIAN TEAM UP TO REDUCE CO2 EMISSIONS, ENABLE CONNECTED VEHICLES AT&T expects to begin adding the Rivian Commercial Van and R1 vehicles to its fleet in early 2024. * NEWS * * * Bookmark + CADILLAC EXPANDS EV PORTFOLIO WITH 2026 VISTIQ Slotted between LYRIQ and ESCALADE IQ, the 2026 Cadillac VISTIQ is a three-row SUV. * NEWS * * * Bookmark + TESLA RECALLS MORE THAN 2 MILLION VEHICLES The recall follows an NHTSA investigation of 11 incidents involving Tesla’s Autosteer in August 2021. * ARTICLE * * * Bookmark + TOP TECHNOLOGY TRENDS IN FLEET ELECTRIFICATION FOR 2024 Staying on top of the latest developments in fleet electrification can be a full-time job, so here are the five trends to know about. * ARTICLE * * * Bookmark + ADDRESSING THE ACUTE ELECTRIC VEHICLE SAFETY GAP Most fleets or providers are not threading basic safety into electrification plans, which can impact employees foremost and also affect long-term costs and coverage. * NEWS * * * Bookmark + HYUNDAI ANNOUNCES 2024 KONA ELECTRIC PRICING The 2024 Kona Electric SUV comes in three price trims and an estimated EPA range of more than 250 miles. * NEWS * * * Bookmark + CHARGEHUB, HOLMAN COLLABORATE ON PUBLIC EV CHARGING SOLUTION The solution leverages ChargeHub’s proprietary application to provide access to more than 80,000 reliable charging locations throughout the United States and Canada. * NEWS * * * Bookmark + THE CYBERTRUCK IS HERE! (SORT OF) The base-level truck will be made available in 2025, with the higher-level AWD and Cyberbeast trims set to deliver in 2024 — but in smaller numbers and to existing single reservation holders. * NEWS * * * Bookmark + POLESTAR NAMES JOSEPH RETZER AS U.S. NATIONAL FLEET MANAGER Retzer has 17 years of experience in the automotive industry, beginning with Enterprise Fleet Management and most recently with Nissan North America. * Sponsored by Bluedot * * * Bookmark + REIMAGINING YOUR OPERATIONS FOR EV FLEET MANAGEMENT The path to fleet electrification presents immense opportunities—plus plenty of roadblocks. Let’s explore how rethinking EV fleet management can help your company overcome new complexities to drive a future of unprecedented operational efficiency and environmental sustainability. * ARTICLE * * * Bookmark + THE LATEST FORWARD MOVERS FOR FLEET OPERATIONS From safety to market conditions to connectivity and technology, three keynote sessions at the recent Fleet Forward and Fleet Safety conferences provide an overview of the latest advances for fleets. * ARTICLE * * * Bookmark + GETTING THROUGH THE EV GROWING PAINS The recent Fleet Forward Conference offered fleet managers some takeaway insights on the state of electric vehicles and the overall transition to electrified fleets. FLEET INCENTIVES Powered by Determine the actual cost of owning and running a vehicle in your fleet. Compare vehicles by class and model. 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