MONTPELIER — The Vermont Agency of Transportation has relaunched the state’s electric vehicle incentive program, offering qualified buyers up to $4,000 toward the purchase or lease of a new plug-in electric vehicle.
The program was first proposed by Scott in his fiscal 2020 budget, and the first round of the program launched in December 2019. A total of $950,000 has been made available in this round.
“Transportation is responsible for a large part of our greenhouse gas emissions and replacing combustion vehicles with electric vehicles is a key strategy for meeting Vermont’s greenhouse gas reduction requirements,” Scott said in announcing the relaunch.
“These incentives make the transition to electric vehicles more affordable for Vermonters and get us closer to a sustainable transportation system.”
Incentive amounts range from $1,500 to $4,000 based on income level and whether the vehicle is an all-electric or plug-in hybrid model. Under the new eligibility criteria, modified in July 2020, individuals or married couples with an adjusted gross income of up to $125,000 may be eligible for incentives, with larger incentives available to individuals or married couples with an income of $50,000 or less.
“We’re very encouraged by the success of the first round of the EV incentive program,” said Transportation Secretary Joe Flynn. “We hope the new round of funding enables more Vermonters to make the switch into driving fully electric vehicles, which are a win for any household budget and a win for our environment.”
Vermonters can apply through a participating auto dealer or independently with a consumer-direct application. Incentive funds will be awarded on a first-come, first-served basis.
Twenty-four plug-in hybrid or all-electric vehicles are eligible under the program.
For additional information on income eligibility, eligible PEVs and application instructions, as well as other EV incentives, visit www.driveelectricvt.com/why-go-electric/purchase-incentives.
FEDERAL TAX CREDITS
Federal tax credits ranging from $2,500 to $7,500 are available to buyers of qualified plug-in electric vehicles, as well. The size of the credit is based on the battery size.
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 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 Energy’s Fuel Efficient Vehicle Tax Information Center, https://www.fueleconomy.gov/feg/taxevb.shtml (see the “Claiming the Credit” section beneath the listing of models and tax credit amounts).