Electric Vehicles (EV)

State of Vermont Incentives:

The Vermont Agency of Transportation (VTrans) is overseeing the State of Vermont incentive program for new plug-in electric vehicle purchases or leases. This program launched in December 2019 with $1,100,000 for incentives. This funding was depleted in October 2020. The State appropriations bill enacted on October 2, 2020 (Act 154) included another $950,000 for incentives, and then an additional $2.7 million for incentive funding was included in the FY2022 Transportation Bill (Act 55). Interested Vermonters are encouraged to take advantage of this offering while funds are available.

Incentive amounts vary by income level and whether the vehicle is an all-electric or plug-in hybrid model. These State incentive funds are available to all Vermonters on a first-come, first-served basis. Details on incentive amounts and processing are provided below.

Separate from the new EV purchase incentives, the State is also supporting a high-efficiency used vehicle incentive program for lower income households. These incentives are available through the MileageSmart program administered by Capstone Community Action. This program is available to income-eligible Vermonters and offers 25% of the purchase price, up to $5,000, on several EV models.

Federal Incentives: 

Federal tax credits ranging from $2,500 to $7,500 are available to buyers of qualified plug-in electric vehicles. The size of the credit is based on the battery size. Our vehicle comparison includes the exact amounts for each model.

No date is currently in place for the expiration of these tax credits but once an individual manufacturer sells 200,000 qualifying vehicles the credit will be phased out for that automaker over the course of a year. Tesla vehicles reached the end of their sunset period on December 31, 2019 and General Motors vehicles had their tax credit entirely phased out on March 31, 2020.

Since the credit can only be claimed in the year the vehicle was put into service, the annual federal tax liability of the buyer may be a limiting factor in the size of the tax benefit received. 

For more information on how to claim the electric car tax credit, visit the U.S. Department of Energyʼs Fuel Efficient Vehicle Tax Information Center (see the “Claiming the Credit” section beneath the listing of models and tax credit amounts)

Utility Incentives: 

Burlington Electric Department is offering customers a $1,800 rebate on the purchase or lease of a new all-electric vehicle or $1,500 on a new plug-in hybrid vehicle priced at $50,000 or less, or $800 on a used electric car. Moderate income customers are eligible for up to an additional $600 incentive on an all-electric or $300 for a PHEV. They will also provide all-electric buyers with a $400 rebate toward a qualifying level 2 charger if purchased within 60 days of your vehicle purchase or lease.

If you have a BED-approved charger, you can sign up for a discounted rate for EV charging of 8 cents/kWh when you keep all your charging for the month between 10 pm and 12 noon. 

BED has partnered with local credit unions on low-interest financing options for electric vehicle purchases that includes their incentive.

Visit BED’s Electric Vehicle program resources for more information on these incentives.

BED also offers $200 discounts on electric bicycle purchases or conversions.

Green Mountain Power is offering electric car incentives, including $1,500 for a new all-electric vehicle, $1,000 for a new plug-in hybrid, or $750 for a used electric car (either all-electric or plug-in hybrid). Qualifying low-to-moderate income customers getting a new or used all-electric vehicle can also receive an additional $1,000 rebate. These incentives are available for customers purchasing or leasing electric cars with a manufacturer’s suggested retail price (MSRP) under $60,000. Interested customers are encouraged to visit GMP’s EV rebate page for additional details. 

GMP also offers customers FREE Level 2 (240 Volt) charging equipment with an electric vehicle purchase. Customers are responsible for any installation costs. The charger needs to be internet connected and part of the GMP program where customers share access with GMP to reduce demand during peak times. Visit their in-home charging page for more details.

They have also partnered with Alderman’s Chevrolet on GM employee discount pricing for Volt or Bolt customers.

GMP also offers $200 discounts on electric bicycle purchases or conversions.

Stowe Electric Department is offering customers a $1,000 incentive for the purchase of a new all-electric vehicle or $750 for a new plug-in hybrid vehicle. Income qualifying customers will also be eligible for an additional $250 incentive on a new EV. Pre-owned EVs are eligible for an incentive of up to $400.

Visit their website for more information on these offerings.

Vermont Electric Coop is offering customers a $500 bill credit for the purchase of a new or used all-electric vehicle or $250 for a plug-in hybrid vehicle. Customers leasing an all-electric car are eligible for up $100 in bill credit for each year of the lease or $50 for each year of the lease for plug-in hybrid vehicles. Lower-income members qualifying for the higher state incentive amounts will receive an additional $250 from VEC.

VEC is also offering a $250 bill credit for qualifying level 2 home charging equipment when avoiding charging between 5-9 pm.

Visit their Electric Transportation resources for more information.

Vermont Public Power Supply Authority (VPPSA)—including Barton, Enosburg, Hardwick, Jacksonville, Johnson, Ludlow, Lyndonville, Morrisville, Northfield, Orleans and Swanton.

The rebate amount is $1,000 for the purchase or lease of a new all-electric vehicle or $500 for a new plug-in hybrid vehicle. Low income customers are eligible for an additional $400 for a new all-electric or plug-in hybrid vehicle. Pre-owned electric vehicles are eligible for an incentive up to $500.

VPPSA’s electric car rebate form has more information on redeeming this offer.

VPPSA is also offering a $500 incentive for public or workplace EV charging installations. Learn more at their EV charging rebate resources.

Washington Electric Co-op is offering members incentives of $1,200 on a new all-electric vehicle or $950 on a new plug-in hybrid vehicle (purchase or lease). An additional $700 is available for income-eligible households.

WEC also offers customers free Level 2 (240 Volt) charging equipment. Members are responsible for any installation costs. The charger needs to be internet-connected and part of the Powershift program where customers provide access to reduce charging demand during peak times. Visit the Powershift page for more details.

Visit WEC’s EV incentives page for more details.

Other Vermont Incentives

Several Vermont companies and organizations offer incentives for electric car purchases and other sustainable transportation options. Check with your employer to see whether you are eligible.

ZERO-EMISSION TECHNOLOGY INVENTORY

The Zero-Emission Technology Inventory (ZETI) tool is an interactive online resource to establish a current and shared knowledge base for worldwide commercially available offerings of zero-emission medium- and heavy-duty vehicles (MHDVs).

Recurrent Auto

Recurrent Auto has tools for both EV owners and shoppers on how to buy, sell and drive a used electric car. Their range report is specifically helpful for those shopping for an electric vehicle.