Electric Vehicle Incentive Calculator
This tool estimates potential incentives for electric vehicle purchases or leases, including those from electric utilities, the State of Vermont and Federal incentives. Not all eligibility factors are accounted for. See the information below and check with incentive sources to confirm your eligibility prior to purchase.
This tool is in beta. This information in this tool is based on the latest information available to Drive Electric Vermont, but actual incentive amounts may vary based on eligibility criteria. Please let us know if you encounter any issues using this tool.
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.
State Incentive Eligibility
- State EV incentive funding will not apply retroactively to EV purchases or leases made when funds are exhausted and any new funds are not yet available.
- The program incentives are available to Vermont residents only - a current Vermont driver’s license is required as proof of residency.
- Incentive eligibility includes income requirements based on your adjusted gross income (AGI) reported in your most recent tax return and your tax filing status (e.g. single, married filing jointly, etc). See the table for details.
- Lower income filers are eligible for higher incentives.
- There is a limit of one incentive per individual per year, as determined by a minimum 12 month elapsed time from a prior State of Vermont EV incentive.
- The incentive program does not extend to commercial or non-profit organizations.
- The program does not apply retroactively to purchases made between 10/1/2020 and 11/4/2020.
- For personal use vehicles only; not available for vehicles intended for resale.
- Incentives are available for plug-in electric vehicles sold/leased as new with a base manufacturer’s suggested retail price (MSRP) of $40,000 or less.
- Leases must be for a term of 24 months or longer.
How much can you receive when you buy an electric vehicle?
State Incentive Amounts by Vehicle Type and Income Level
Incentive amounts depend on the type of EV (plug-in hybrid or all-electric) and income level. The income limits and incentive amounts were modified in August 2021 to reflect updated eligibility requirements set by the State of Vermont.
|Tax Filing Status||Adjusted Gross Income (AGI) Limits for Enhanced and Standard Incentives||State Incentive Amount|
|Plug-in Hybrid Electric Vehicle||All-Electric Vehicle|
|Individual filing as single or head of household||$50,000 or less||$3,000||$4,000|
|$50,001 up to $100,000||$1,500||$2,500|
|Married filing jointly||$75,000 or less||$3,000||$4,000|
|$75,001 up to $125,000||$1,500||$2,500|
|Married filing separately||$50,000 or less||$3,000||$4,000|
|$50,001 up to $100,000||$1,500||$2,500|
|Individual filing as qualifying widower||$75,000 or less||$3,000||$4,000|
|$75,001 up to $125,000||$1,500||$2,500|
Income will be self-verified by program applicants, with incentive applicants subject to potential audits by the State of Vermont to confirm eligibility.
How to Get Your State Incentive
There will be two ways to get the State of Vermont EV incentive – either directly at a participating auto dealer or via a customer-direct application. Steps for redeeming incentives through either process are outlined below. Incentive payments will flow through electric utilities: Green Mountain Power, Vermont Electric Cooperative, Burlington Electric Department, Washington Electric Cooperative, Stowe Electric Department, Hyde Park Electric, and Vermont Public Power Supply Authority (covering 11 public power utilities across the state).
Option 1: Auto Dealership Point-of-Sale
- Participating dealerships will pass the State incentives to customers at the dealership point of sale or lease.
- The full amount of the customer’s incentive must be clearly listed on the purchase/lease agreement.
- In the case of either a financed purchase or lease, the customer’s full incentive amount shall be applied to the down payment of the vehicle.
- When the State Incentive Program funding has less than $200,000 remaining customers will need to obtain pre-approval to secure a funding reservation prior to purchase. Pre-approval is good for up to 15 days and should be granted within two business days of submitting a Pre-approval form.
Option 2: Consumer-Direct
Customers have the option to claim the incentive and request check payment directly after purchase. This method will provide incentives when a dealership or automaker does not offer point-of-sale incentives or if the EV buyer prefers this option.
- All consumer-direct incentives will require pre-approval prior to purchase. Pre-approval is good for up to 15 days and should be granted within two business days of submitting a Pre-approval form.
- Once the consumer takes delivery of their vehicle they will complete the incentive application form and submit with required documentation to the appropriate electric utility for their home address with a copy to VEIC for processing.
- The State of Vermont EV incentive may be considered taxable income by the U.S. Internal Revenue Service and the Vermont Department of Taxes. It shall be the sole responsibility of the recipient, individually, to seek professional advice and determine the tax consequences of receiving an incentive.
- Customers will receive their incentive check in the mail approximately 4-6 weeks after submitting their customer-direct application form following delivery of their vehicle.
- If a customer indicates to the dealership at any point in the sale process that they prefer to claim a customer-direct incentive, the dealer shall not proceed with a point-of-sale incentive application for that customer.
- Consumers unable to email pre-approval and/or incentive application forms as PDFs should contact the customer support center for assistance.
In both cases, an application for registration of new vehicle must be provided as proof of registration and must meet these requirements:
- The registered owner name/lessee matches the name on the State Incentive Program incentive application.
- The form is complete and signed.
State of Vermont Incentive Program Forms
Dealership Point-of-Sale Incentive Application: This is the form to complete during the point of purchase or lease at a participating dealership. Customers can bring a partially filled form to the dealership, or it will be available at participating dealerships for completion at time of sale/lease.
Pre-Approval: If you would like to receive your incentive directly or State incentive funds are below $200,000 remaining then pre-approval is required. Submit this form to receive a unique pre-approval number for a State incentive.
Consumer-Direct Incentive Application: Once you are pre-approved, please complete your purchase and return this form with the required documentation within 15 days of purchase. See the form submittal instructions for the appropriate processor for your home address.
What Vehicles are Eligible?
Incentives are available for plug-in electric vehicles sold/leased as new with a base manufacturer’s suggested retail price (MSRP) of $40,000 or less.
Table 2 on page 7 of the State of Vermont Plug-in Electric Vehicle Incentive Program Guidelines lists the models eligible for the State incentive program. This list will be updated if new PEV models are introduced to the Vermont market with a base MSRP under $40,000 while the State Incentive Program is available.
Filter our vehicle comparison tool using the Vermont Incentive pull-down set to "Incentive Available" to only show eligible models.
View the dealer list (make sure to look for the Vermont State Incentive Program Participant tag)
Frequently Asked Questions
1. How long will the State incentive program be available?
The program will run while funds are available. Please refer to the funds remaining tracker on this page for the latest information on this. We are unable to provide an end date, but can offer that Vermont Legislators included an additional $2.2 million for EV incentives in the current State transportation bill. If future incentive spending follows a similar trend as previous years these funds should last into 2022.
2. Are any vehicles priced over $40,000 eligible for a State incentive?
Vehicle model eligibility for the State incentive program is determined by the base manufacturer's suggested retail price (MSRP). If a vehicle is listed as an eligible model (see above) then any version of that model is eligible for the State incentive program, even if the selling price is above $40,000.
3. Will you be updating the list of eligible vehicles for the State incentive program when new models are available in Vermont?
Yes, the listing of eligible models will be updated if new EV models with a base price under $40,000 Manufacturer’s Suggested Retail Price (MSRP) become available while funds remain.
4. What happened to Tesla Model 3 eligibility?
Tesla increased the advertised base price of the Model 3 above the $40,000 eligibility cap on October 6, 2021. According to the State of Vermont incentive program guidelines, Model 3 orders made after that date are not eligible for a State of Vermont incentive for a new EV purchase or lease.
5. How can I determine my adjusted gross income (AGI) for eligibility?
EV consumers can determine their AGI by checking their most recent state or federal income tax return. The State of Vermont income tax form, IN-111, lists AGI on line 1 – labeled “Federal Adjusted Gross Income”. The federal income tax form, IRS 1040, lists AGI on line 8b of the 2019 form or line 11 of the 2020 form. For applicants who have not filed a recent tax return, documentation may be required to calculate income if they are subject to an incentive audit. Examples of additional documentation that may be required includes W2s, bank statements, or other income verification documentation requested by the State of Vermont.
6. Are used EVs eligible for any incentives?
The State EV incentive program is only available for new electric vehicle purchases. However, the MileageSmart program is available for lower income households purchasing an eligible used EV and many electric utilities offer incentives on used EV purchases.
7. Can I receive a State incentive and a Utility incentive?
Yes, the State incentive can be combined with Electric Utility and other incentives to further reduce the cost of an EV purchase or lease, provided the consumer meets all the eligibility requirements for each program. There is a limit of one State incentive per individual or married couple and many electric utility incentive programs also include limits on participation.
8. Which electric utility serves my home address?If you do not receive an electric bill from a utility for your household, you can use this map to determine your utility provider.
9. What are the tax implications of receiving an incentive?
The State of Vermont EV incentive may be considered taxable income by the U.S. Internal Revenue Service and the Vermont Department of Taxes. It shall be the sole responsibility of the recipient, individually, to seek professional advice and determine the tax consequences of receiving an incentive.
10. Where can I learn more about the administration of the State Incentive Program?
The State of Vermont Plug-in Electric Vehicle Incentive Program Guidelines are available with detailed information on eligibility, incentive processing, and information for dealers interested in offering point-of-sale incentives for their customers.
11. I am an auto dealer - how can I sign up to offer point-of-sale incentives to my customers?
Dealers can opt-in to offer point-of-sale incentives at any time while State incentive funds are available. Dealers should refer to the program guidelines linked above for details and submit a participating dealer agreement and IRS W-9 form to info@DriveElectricVT.com to receive confirmation of their participation.
12. Can I receive assistance completing an incentive application?
Yes, dealers offering point-of-sale incentives can assist customers with incentive application materials. Consumers needing assistance with pre-approval or consumer-direct State incentive applications should contact customer support (see below).
General consumer questions related to the State Incentive Program, the pre-approval process for a dealership point-of-sale or consumer-direct incentive, or requests for funding status should be directed to VEIC’s Drive Electric Vermont support team at:
Please contact your utility for questions related to the status of a specific incentive application.
Vermont state incentives remaining
Vermont Electric Utility IncentivesElectric utilities across the state are offering customer incentives to help meet their Vermont Renewable Energy Standard Energy Transformation (Tier III) obligations to reduce customer fossil fuel use. Details on electric utility offerings are included below. These incentives are in addition to the State incentive program described above. Several Vermont utilities are also offering incentives on electric bicycles and lawncare equipment. Please check with your utility for details on other offerings.
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 electric 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 a new all-electric or $300 for a new PHEV. They will also provide new all-electric vehicle 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.
GMP customers with compatible internet-connected level 2 charging equipment can also sign up for discounted off-peak rates for electric vehicle charging.
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 has an electric car rebate program for customers of the following municipal electric utilities: Barton Village, Village of Enosburg Falls, Hardwick Electric Department, Village of Jacksonville, Village of Johnson, Ludlow Electric Light Department, Lyndonville Electric Department, Morrisville Water and Light Department, Northfield Electric Department, Village of Orleans, and Swanton Village.
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.
Visit WEC's EV incentives page for more details.
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.
Other Vermont electric utilities may have reduced rates for charging and/or electric car purchase incentives. Please contact your local electric provider to learn more about current or planned programs for electric car owners.
Auto manufacturers and local auto dealerships may offer special deals on electric cars from time-to-time. Drive Electric Vermont will share information from dealers when we are notified of these specials. Electric car shoppers are encouraged to consider their purchase/lease options and research vehicle pricing before purchasing using the online tools as referenced in our Leasing vs Purchasing Blog Post. Electric car dealerships not listed below may offer similar or better pricing through the negotiating process.
Nissan is currently offering LEAF purchase discounts in Vermont of $2,000 for model year 2022 vehicles. See their flyer for additional details.
Alderman's Chevrolet is offering discounted General Motors employee pricing on Bolt purchases for Burlington Electric and Green Mountain Power customers. See their press release for additional details.
Cody Chevrolet is offering discounted General Motors employee pricing on Bolt purchases for Burlington Electric and Green Mountain Power customers.
Key Chevrolet is offering discounted General Motors employee pricing on Bolt purchases for Burlington Electric and Green Mountain Power customers.
Middlebury Chevrolet is offering discounted General Motors employee pricing on Bolt purchases for Vermonters.
Other Vermont Incentives
The MileageSmart program is funded by the State of Vermont to offer lower income households an incentive covering 25% of a used high efficiency vehicle purchase cost, up to $5,000. Eligible used vehicles must have an efficiency of 40 miles per gallon or higher - this includes many EV models with miles per gallon equivalent efficiences well over 40 MPGe. Additional information on eligiblity and application instructions is available at MileageSmartVT.org.
Vermont companies and organizations may offer incentives for electric car purchases and other sustainable transportation options. Check with your employer to see whether you are eligible.
Federal Tax Credits for the Purchase of Electric Vehicles
Federal tax credits ranging from $2,500 to $7,500 are available to buyers of qualified new plug-in electric vehicles. The size of the credit is based on the battery size. Our vehicle comparison includes the 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 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). The IRS also provides additional information on the forms and procedures for claiming the credit on their website.
Leasing and the Federal Tax Credit
If you are interested in leasing an electric car, it is important to note the federal tax credit can only be claimed by the leasing company as the "owner" of the vehicle. However, the leasing company will usually pass through a portion or all of the benefit to the lessee (driver) as part of the lease deal to significantly lower the lease down payment and/or monthly payments.
We encourage anyone shopping for an electric car lease to work with the dealership to understand how the federal tax credit may reduce your lease costs.
Federal Tax Credits for Electric Vehicle Charging Equipment
The federal tax credits for Electric Vehicle Supply Equipment (EVSE) for businesses and residents was extended by Congress in December 2020 to run through December 31, 2021.
Homeowners are eligible for a 30% tax credit up to $1,000 based on their charging station installation costs.
Commercial property owners are eligible for a 30% tax credit up to $30,000 on installation costs for charging equipment.
More information on this tax credit, including links to IRS forms, is available at the U.S. Department of Energyʼs Alternative Fuels Data Center.