State Incentives

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 $12 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 at least into 2024.

Are any vehicles priced over $40,000 for Plug-in Hybrids / $45,000 for All-Electric vehicles 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. Additionally, vehicle MSRP exemptions are available for individuals with disabilities that require special registration plates or placards as defined in 23 V.S.A §304a.

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) for Plug-in Hybrid Electric Vehicles and under $45,000 MSRP for All-Electric Vehicles become available and while funds remain.

What happened to Tesla Model 3 eligibility?

Tesla increased the advertised base price of the Model 3 above the state incentive eligibility cap on October 6, 2021. According to the State of Vermont incentive program guidelines, Model 3 orders made on or after that date were not eligible for a State of Vermont incentive for a new EV purchase or lease. Subsequently, Tesla lowered the base MSRP of the Model 3 on January 13, 2023, making Model 3 deliveries on or after that date eligible again for the State incentive program for new EVs.

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 11 of the 2020 and 2021 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.

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. Used EV purchases made in 2023 or later may also be eligible for a Federal Tax Credit.

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 per 12 month period and many electric utility incentive programs also include limits on participation.

What are the tax implications of receiving an incentive?

The program does not issue a 1099 for the rebate. 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.

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.

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 contact Drive Electric Vermont ([email protected]) to sign a participating dealer agreement to gain access to the dealership portal.

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 consumer-direct State incentive applications should contact customer support (see below).

Support Center

General consumer questions related to the State Incentive Program, the process for a dealership point-of-sale or consumer-direct incentive, or requests for funding status should be directed to at the Center for Sustainable Energy at:

[email protected]

1 (888) 807-0446