Dealerships are important partners in increasing EV adoption in Vermont. You can help customers learn about EV options, go for test drives, and help your customers access state and federal incentives. Here, we'll share some resources on state and federal incentives to support your work.

Vermont incentive programs

Vermont consumer incentive programs

The Vermont consumer incentive programs are administered by the Center for Sustainable Energy (CSE).

Note: All State of Vermont incentives are currently suspended pending additional funding availability. Stay up to date on our blog.

  1. Apply

    Apply to become a participating dealer. This means you'll be able to provide point-of-sale incentives for your customers. Email the signed agreement to [email protected].

    Participating dealer agreement

  2. Dealer portal

    Once approved, enroll in the dealership portal to submit and monitor rebate applications.

    Dealership portal quick guide

    Dealership portal

  3. Program guidelines

    Review the state incentive program details to understand each program and how your dealership will administer them.

    New EV incentive program guidelines
    Used EV incentive program (MileageSmart) details
    Replace Your Ride incentive program guidelines

  4. Consumer attestation forms

    Submit the appropriate documentation via the portal within 15 days of each incentive-eligible EV purchase.

    Consumer attestation form for new EVs
    Replace Your Ride consumer attestation form for used EVs
    Replace Your Ride replaced vehicle attestation form

  5. State incentive tips

    Avoid common mistakes by keeping this resource on hand.

    How to avoid common rebate mistakes

Vermont dealer incentive programs

Efficiency Vermont administers an EV dealer incentive program to help dealerships invest in the equipment, tools, and education necessary to sell and service EVs. Dealerships can also opt in to receive a financial incentive for each new or used EV sold or leased to a Vermont customer, up to 50 sales per year.

EV readiness initiative

New car dealerships can receive 50% back on projects up to $25,000. Used car dealerships can receive 90% back on projects up to $25,000.

Eligible projects include:

  • Charging stations and installation costs (including electrical infrastructure upgrades)
  • Service tools and equipment specific to EVs
  • EV trainings or certification programs for technicians or service department staff

See program details

Dealership and salesperson EV sales incentive

Receive $400 for each new or used EV sold or leased to a Vermont customer, up to 50 sales per year.

See program details

Federal incentives

Federal tax credits

Customers can access EV tax credits in two ways. They can either 1) have the credit applied by the dealership at the time of sale, or 2) apply for the credit after the sale. Dealers can pass through the tax credit to customers at the point-of-sale and get reimbursed by the IRS within 72 hours. If a dealership opts not to pass through tax credits at the time of sale, it still needs to register and report sales to the IRS within 3 days to enable customers to claim the credit themselves.

Passing through the incentive at the point-of-sale gives the customer instant access to the funds regardless of their tax liability. If they have to claim it themselves, they’ll need to wait until they file taxes for the year they purchased the vehicle (which could be more than 12 months out). Also, if they don’t have enough tax liability in that year, they will not get the full benefit when claiming the credit on their own. Dealer pass-through guarantees the customer will get the full amount of the tax credit.

Dealers cannot pass through the individual federal tax credit on leased vehicles. The lessee is not the owner and is therefore not eligible to claim the credit. Leased vehicles may qualify for a commercial clean vehicle credit (IRC 45W). The credit must be claimed by the leasing company, which can then pass through some or all the value of the credit as a lease incentive.

  1. Check IRS requirements

    Make sure you meet the IRS requirements for accessing clean vehicle tax credits.

    Dealer requirements

  2. Sign up for the portal

  3. Research eligible EVs

    Familiarize yourself with the new and used EVs that are eligible for federal tax credits.

    Eligible vehicles

  4. Verify purchaser eligibility

    Use IRS checklists to verify purchaser eligibility prior to a sale.

    New EV tax credit checklist
    Used EV tax credit checklist
  5. File report of sale

    File reports within 3 days of each new or used EV sale.

    How to submit time of sale reports

  6. Enroll in IRS communications

    Sign up to receive email updates from the IRS about EV tax credits. Select "e-News for business" and then "e-News for clean vehicle industry."

    Email newsletter sign-up

  7. Contact the IRS for support

    Get in touch with the IRS for technical support needs.

    How to send a secure message through the portal
    Email the IRS

Webinars

April 24, 2024 - State of Vermont EV Incentive Programs: Auto Dealer Updates

View webinar recording