Abstract The use of electric bus fleets has become a topical issue in recent years. Several companies and municipalities, either voluntarily or to comply with legal requirements, will transition to greener bus fleets in the next decades. Such transitions are often established by fleet electrification targets, which dictate the number of electric buses that should be in the fleet by a given time period. In this paper we introduce a comprehensive optimization-based decision making tool to support such transitions. More precisely, we present a fleet replacement problem which allows organizations to determine bus replacement plans that will meet their fleet electrification targets in a cost-effective way, namely considering purchase costs, salvage revenues, operating costs, charging infrastructure investments, and demand charges. We account for several charging infrastructure options, such as slow and fast plug-in stations, overhead pantograph chargers, and inductive (wireless) chargers. We refer to this problem as the electric bus fleet transition problem, and we model it as an integer linear program. We apply our model to conduct computational experiments based on several scenarios. We use real data provided by a public transit agency in order to draw insights into optimal transition plans.