Contractors in 2025 must navigate various federal and state incentive programs to access affordable electric equipment for projects. Federal support like the Clean Electricity Investment Tax Credit and state initiatives such as California's CORE program offer financial assistance to help contractors adopt zero-emission technologies. Acting swiftly to understand and leverage these incentives is crucial for success in the evolving industry landscape.
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Contractors who take the time now to understand what’s available and prepare to meet these requirements will not only cut costs — they’ll position themselves for long-term success as the industry shifts toward cleaner, quieter, more sustainable operations.
Electric equipment is no longer just a niche solution — it's quickly becoming a requirement for many public projects and urban job sites.
For contractors, especially those aiming to work with municipalities or on government-funded developments, understanding and leveraging available incentives is critical.
Incentive programs at both the federal and state levels are helping reduce the cost of zero-emission equipment, making it more accessible for small and large contractors alike. But these programs vary widely by region and their future can be tied to shifting political priorities. That means knowing what's available — and acting quickly — can offer a serious advantage.
Federal Support: Shifting But Strategic Opportunity
At the federal level, the Inflation Reduction Act (IRA) continues to offer key benefits. Among them is the Clean Electricity Investment Tax Credit, which provides a 30 percent credit for eligible equipment purchases if projects meet wage and apprenticeship criteria. For contractors investing in electric machines, this can substantially offset the upfront cost.
There's also support for charging infrastructure through the Alternative Fuel Refueling Property Credit. This program covers up to 30 percent of the cost (up to $100,000) for installing electric charging stations — making it easier for contractors to manage electric fleets without massive logistical hurdles.
Still, the future of these programs remains somewhat uncertain. Shifts in federal administration could impact the availability or scale of incentives. While current support is strong, there's no guarantee it will remain so long term. Contractors who act now are in the best position to take advantage.
State-Level Standouts: California, Beyond
California's CORE (Clean Off-Road Equipment Voucher Incentive Project) program is among the most robust state initiatives available today. It offers point-of-sale vouchers to dramatically reduce the purchase price of zero-emission construction equipment.
As of 2025, CORE has more than $126 million in funding available. Specialized tracks exist for industries like landscaping, where small business owners and sole proprietors can access dedicated support. The program also provides bonus incentives for equipment deployed in disadvantaged communities or by small businesses.
Texas offers its own initiative through the Texas Emissions Reduction Plan (TERP). TERP includes grants for a variety of vehicles and equipment used in construction, agriculture, cargo handling and more. Programs under TERP — such as the Emissions Reduction Incentive Grant Program and the Diesel Emissions Reduction Incentive Rebate Grant — help fund replacements or upgrades to cleaner technologies, cutting both emissions and operational costs.
In New York, the New York State Energy Research and Development Authority (NYSERDA) provides technical and financial support through multiple clean energy programs. Their FlexTech program supports energy studies and planning, while utilities like NYSEG and RG&E offer capital investment incentives up to $200,000 per project for electric infrastructure upgrades.
Programs like CORE, TERP and NYSERDA-backed efforts are making a tangible difference in how electric equipment is adopted, especially in states where clean air goals drive procurement policies. Many contractors still overlook these tools, but those who take the time to explore their options can gain a financial and competitive advantage.
How Contractors Can Stay Ahead of Curve
Municipalities and government agencies are prioritizing zero-emission goals — and they want contractors who can help them meet them. That means having electric equipment ready and being able to document eligibility for available incentives. This doesn't just help with cost — it can be the difference in winning a bid.
To take full advantage, contractors should start early. Many incentive programs operate on a first-come, first-served basis and the most successful applicants are those who plan ahead. Documentation is key — equipment specs, business qualifications and program requirements all need to be in order before submitting an application.
Manufacturers and dealers can be essential partners in this process. They often have direct lines to program administrators, understand how to match equipment with incentive criteria and can help walk through the necessary paperwork.
Contractors who take the time now to understand what's available and prepare to meet these requirements will not only cut costs — they'll position themselves for long-term success as the industry shifts toward cleaner, quieter, more sustainable operations.
Electric equipment is a smart investment. With the right incentives, it's also an affordable one. Now is the time to make your move.
For more information, visit www.jcb.com.
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