Does Virginia offer a tax credit or rebate for electric and plug-in hybrid vehicles? Here is where the state's EV Rebate Program stands, which Dominion Energy charging incentives Virginia Beach drivers can use today, and the state fees every EV owner should plan for.
The short answer is no — Virginia does not offer a state income tax credit for buying or leasing an electric vehicle or plug-in hybrid.
In 2021 the General Assembly created the Virginia Electric Vehicle Rebate Program, which on paper offers a $2,500 rebate on a qualifying EV, plus an additional $2,000 for income-qualified buyers. However, according to Virginia Energy, the program has never been funded, so no rebates are being paid. The authorizing law is set to expire on January 1, 2027.
Even if funding arrived, the program caps eligible vehicles at a $55,000 price, which places every new Range Rover, Range Rover Sport, and Defender model well outside its reach.
Virginia's EV rebate is frequently quoted online as if it were available. Here is how the program was written, and why it does not apply to Range Rover PHEV shoppers.
| Program Element | The Rule (as written) | What It Means for Range Rover PHEV Buyers |
|---|---|---|
| Funding Status | The General Assembly has not appropriated money to the rebate fund. | Not available. No Virginia EV rebates are currently being issued to any buyer. |
| Base Rebate | $2,500 toward the purchase of a qualifying new or used EV from a participating Virginia dealer. | Not available. Unfunded, and the vehicle price cap below applies. |
| Income-Qualified Bonus | An additional $2,000 for households earning no more than 300% of federal poverty guidelines. | Not available. Unfunded. |
| Vehicle Price Cap | Eligible vehicles must be priced at $55,000 or less. | Disqualifies. New Range Rover and Range Rover Sport PHEV models are priced well above $55,000. |
| Program Expiration | The authorizing law expires January 1, 2027. | Watch for changes. Unless lawmakers extend and fund it, the program will lapse. |
Note: State programs and funding can change with each budget cycle. Always confirm current eligibility with Virginia Energy and a certified tax professional.
Most Virginia Beach households are served by Dominion Energy Virginia, which offers the most tangible EV savings available in the area today.
Buy a new qualifying Level 2 smart charger, register it with the manufacturer, and enroll in EV Charger Rewards to receive a $125 enrollment incentive. You must apply within 120 days of buying the charger, and the rebate typically takes 4–8 weeks to process.
In exchange for letting Dominion briefly adjust your charging during periods of high grid demand (up to 45 events per year), you receive $40 after each enrollment anniversary. The program is open to residential customers in single-family homes on a residential rate schedule.
Prefer a turnkey setup? Dominion's Residential Charger Program provides a Level 2 charger installation with the cost spread out as a fixed monthly charge on your electric bill. Check Dominion's site for current pricing and equipment options.
Dominion program terms, eligible chargers, and rate-plan compatibility change periodically. Some time-of-use plans may not be combinable with EV Charger Rewards, so confirm details at dominionenergy.com before you buy a charger.
Because EVs and fuel-efficient vehicles pay little or no gas tax, Virginia adds a Highway Use Fee at registration. For July 1, 2026 through June 30, 2027, the fee for all battery-electric vehicles is $135.63 per year. Fuel-efficient vehicles rated at 25 mpg or higher pay a smaller, sliding fee based on their rating. Drivers can instead enroll in DMV's mileage-based option and pay only for the miles they drive.
Virginia does not exempt electric or plug-in hybrid vehicles from its Motor Vehicle Sales and Use Tax. EVs are taxed at the same 4.15% rate as any other vehicle, and local personal property tax in Virginia Beach applies as usual.
Virginia's emissions inspection program applies only to vehicles garaged in certain Northern Virginia localities, so Virginia Beach drivers are not subject to it regardless of powertrain. A standard annual Virginia safety inspection is still required for every vehicle.
Whether a plug-in hybrid owes a Highway Use Fee depends on its rated fuel economy. Our team can help you check the figure for the specific model you are considering.
Without a state purchase rebate, the real savings come from how you set up charging at home.
Whether you are comparing lease and finance options or estimating charging costs at home, the team at Land Rover Virginia Beach is ready to help you find the right Range Rover PHEV and the right deal.
No. Virginia does not offer a state income tax credit for buying or leasing an electric vehicle or plug-in hybrid.
Not currently. The Virginia Electric Vehicle Rebate Program was created in 2021 to offer $2,500, plus $2,000 for income-qualified buyers, on EVs priced at $55,000 or less. The General Assembly has never funded it, and the law expires January 1, 2027.
Range Rover PHEV models do not qualify for the state vehicle rebate because they exceed its $55,000 price cap, and the program is unfunded. Owners who are Dominion Energy customers can still earn charging incentives through EV Charger Rewards.
Dominion Energy's EV Charger Rewards program pays a $125 enrollment incentive for a qualifying new Level 2 smart charger, if you apply within 120 days of purchase, plus $40 for each year you remain enrolled. Dominion also offers a Residential Charger Program with installation costs billed monthly.
Yes. Virginia charges a Highway Use Fee at registration. For July 2026 through June 2027, battery-electric vehicles pay $135.63 per year, while fuel-efficient vehicles rated at 25 mpg or higher pay a smaller fee based on their rating. A mileage-based payment option is also available through DMV.
Absolutely. We can explain current manufacturer offers and local programs, but we are not tax advisors. Always consult a certified CPA or tax professional about your specific situation.
