State of Vermont Incentives

MileageSmart Used Electric Vehicle Incentive Program

Overview

The State of Vermont has partnered with Capstone to offer the MileageSmart program. This offers low and moderate income car buyers an incentive covering 25% of the upfront cost of a used high efficiency vehicle, up to $5,000.

Vehicle Eligibility

Vehicles must have an efficiency of 40 miles per gallon or higher. This includes many hybrid, plug-in hybrid and all-electric vehicles.

How to claim your incentive

You must meet income eligibility requirements and be pre-approved prior to a purchase. Learn more and access application instructions at MileageSmartVT.org.

State of Vermont Incentives for New Electric Vehicles

Overview 

The Center for Sustainable Energy (CSE) 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). Section 5 of the FY2023 Transportation Bill (Act 184) added another $12 million effective July 1, 2022. As of July 1, 2022 there was $12.3 million available for the program. 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 eligible Vermont residents on a first-come, first-served basis. Details on incentive amounts and processing are provided below.

You may qualify for additional incentives 

Vermonters purchasing plug-in electric vehicles may also be eligible for a Federal tax credit and/or offers from electric utilities. Please visit our general incentive resources, including our incentive calculator tool to learn more.

Quick Links

State EV Incentive Application Portal is available to apply or check the status of your State incentive

Eligibility 

Complete and detailed information regarding program eligibility can be found in the Program Guidelines.

  • For consumer-direct rebates, the purchaser or lessee has two months to submit a rebate application after the date of purchase/lease to be eligible for a rebate. For Dealer Point-of-Sale rebates, a dealership should submit a rebate application during the purchase/lease with the consumer, or within 15-days of sale/lease. Both the consumer-direct application and Dealer Point-of-Sale application should be submitted through the online Application Portal.
  • The program incentives are available to Vermont residents only - a current Vermont driver’s license is required as proof of residency. 
  • The vehicle must be registered within the State of Vermont.
  • 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 approval.
  • The incentive program does not extend to commercial or non-profit organizations.
  • For personal use vehicles only; not available for vehicles intended for resale. 
  • State Incentives are only available on new vehicle purchase or leases of eligible models with a base MSRP of $40,000 or less for Plug-in Hybrid Electric Vehicles and $45,000 or less for All-Electric Vehicles. Vehicle MSRP exemptions are available for individuals with disabilities that require special registration plates or placards as defined in 23 V.S.A §304a.
  • Leases must be for a term of 24 months or longer. 

Rebate Amounts

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. Income will be self-verified by program applicants, with incentive applicants subject to potential audits by the State of Vermont to confirm eligibility.

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

How to Get Your State Incentive

There are two ways to get the State of Vermont EV incentive – either directly at a participating auto dealer or via a customer-direct application.

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 and the customer must sign a consumer attestation form at the dealership. 
  • 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. 

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 (e.g. an dealership located out of Vermont) or if the EV buyer prefers this option.
  • Once the consumer takes delivery of their vehicle they should complete the incentive application form and submit this form with required supporting documentation via the online Application Portal.
  • 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.
  • Customers will receive their incentive check in the mail approximately 6-8 weeks after submitting their customer-direct application form following delivery of their vehicle.
  • Consumers having trouble completing the online Application or uploading supporting documents should contact [email protected]

Registration Requirements

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 and the final contract.
  • The vehicle must be registered in the State of Vermont.
  • The form is complete and signed.

State of Vermont Incentive Application Form

Consumer Application Form: A Consumer Attestation Form is a consumer's consent to receive their rebate based on the program Terms and Conditions, and verification they the program eligibility requirements. A complete and signed Consumer Attestation Form is required for every application. The name on the form must be one of the names listed on both the vehicle registration and the purchase/lease agreement. This form should be submitted for both Dealership Point-of-Sale Incentives or Consumer-Direct Incentives. For Dealership Point-of-Sale incentives, a customer can bring a partially filled form to the dealership, or it will be available at participating dealerships for completion at time of sale/lease.

What Vehicles are Eligible?

State Incentives are available on new vehicle purchase or leases of eligible models with a base MSRP of $40,000 or less for Plug-in Hybrid Electric Vehicles and $45,000 or less for All-Electric Vehicles. Vehicle MSRP exemptions are only available for individuals with disabilities that require special registration plates and placards as defined in 23 V.S.A §304a.

Table 2 in 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 for Plug-in Hybrid Electric Vehicles and under $45,000 for All-Electric Vehicles, and 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.

Participating Retailers

View the dealer list (make sure to look for the Vermont State Incentive Program Participant tag)

Support Center

Please check our Frequently Asked Questions for answers to common questions on the State incentive program.

Inquiries 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

State of Vermont Incentive Program for eBikes

Overview

ALERT: All available funding for the program is reserved and applications are no longer being accepted. Future funding for the program will require Legislative authorization and is uncertain. This page will be updated if information becomes available on a relaunch of State eBike incentives. In the meantime, many Vermont electric utilities continue to offer their own eBike incentives.

The State of Vermont is offering a limited time incentive program to consumers for the purchase of eligible electric bicycles to reduce vehicle miles travelled in personal automobiles and their associated greenhouse gas emissions This Program was established by section 28 of the 2021 Transportation Bill (Act 55) with additional funding and modifications to program requirements subsequently authorized by section 28 of the 2022 Transportation Bill (Act 184).

VTrans has $100,000 available for the Program. The total incentive pool is available to eligible Vermont residents on a first-come, first-served basis contingent upon funding availability. Once this funding is exhausted, State incentives under this program will no longer be available. Program terms and conditions may change at any time in VTrans sole discretion.

Vermont eBike Incentives will be processed by the administrator, the Center for Sustainable Energy (CSE). Consumers will have two options to receive the rebate, either through retailer point-of-sale incentives at participating eBike retailers or a consumer-direct rebate. Details on the incentive amounts and eligibility are provided below.

You may also be eligible for an eBike incentive from your electric utility in addition to the State Program.

Quick Links

eBike Incentive Program Application Portal

State of Vermont eBike Incentive Program Guidelines

State of Vermont eBike Incentive Attestation Form

Eligibility

General information regarding the eligibility requirements for both the purchaser and eBikes are described below. Complete and detailed information regarding program eligibility can be found in the State of Vermont eBike Incentive Program Guidelines.

Consumer Eligibility

  • The program incentives are available to Vermont residents only - a current Vermont driver’s license or Vermont Non-Driver ID card is required as proof of residency.  If a Vermont resident does not have a current Vermont driver’s license or Non-Driver ID card, a recent (within 3 months) utility bill with the consumer’s name and address will be required.
  • The Vermont eBike Incentives are available for a maximum of one (1) electric bicycle rebate per eligible Vermont resident over the lifetime of the program.
  • Vermonters intending to purchase electric bicycles solely for recreation are asked not to apply.
  • 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 Rebate Amounts and Income Eligibility section for details. 
    • Lower income filers are eligible for higher incentives. 
  • The incentive program does not extend to commercial or non-profit organizations.
  • eBikes are not available for purchases intended for resale. 

eBike Eligibility

  • eBikes must be equipped with a battery supplying 750 watts of power or less to be eligible for a rebate.
  • eBikes must be sold as new.
  • For Consumer Post-Sale Incentives, the purchaser or lessee has two months to submit a rebate application after the date of purchase/lease to be eligible for a rebate. For Dealer Point-of-Sale rebates, a dealership should submit a rebate application during the purchase/lease with the consumer, or within 15-days of sale/lease. Both the Consumer Post-Sale application and Dealer Point-of-Sale application should be submitted through the online Application Portal.

Rebate Amounts and Income Eligibility

Incentive eligibility will be limited to eBike purchasers meeting the Adjusted Gross Income (AGI) requirements in Table 1 below. AGI is determined by the purchaser’s most recent State of Vermont income tax filing as reported on Vermont Department of Taxes Form IN-111 on line 1 - “Federal Adjusted Gross Income.” The federal income tax IRS 1040 form also lists AGI on Line 11 of the 2020 and 2021 form.

Incentive amounts are listed in Table 1 according to the filing status of the purchaser, Adjusted Gross Income, and eBike purchase price (before tax). Applicants with low to moderate income can receive an enhanced rebate.

Table 1. Incentive Amounts by Tax Filing Status, Adjusted Gross Income, and eBike Cost
Tax Status Adjusted Gross Income Incentive Amount
Single or Head of Household $0 - $50,000 50% of purchase price*, up to $400
$50,000 - $100,000 30% of purchase price*, up to $250
Married Couple filing separately $0 - $50,000 50% of purchase price*, up to $400
$50,000 - $100,000 30% of purchase price*, up to $250
Married Couple filing jointly $0 - $75,000 50% of purchase price*, up to $400
$75,000 - $125,000 30% of purchase price*, up to $250
Individual filing as a qualifying widower $0 - $75,000 50% of purchase price*, up to $400
$75,000 - $125,000 30% of purchase price*, up to $250
*The purchase price does not include sales tax.

How to get your State Incentive

There are two ways to get the State of Vermont eBike Incentive – either from a participating retailer by applying the rebate directly at the point-of-sale, or by submitting an application for an incentive directly after purchase and receiving a check if approved.

For either option, a complete and signed Consumer eBike Attestation Form is required. This form is the consumer’s verification to receive the rebate based on the Program Guidelines and Terms and Conditions. The name on the form must match the name on the proof of residency and the sales paperwork.

Option 1: Retailer Point-of-Sale

  • Participating retailers will pass the incentive to consumers at the point-of-sale
  • The applied incentive amount must be listed clearly on the sales receipt or other sales paperwork
  • A consumer must complete and sign the Consumer eBike Attestation Form
  • Proof of Residency including a legible copy of a current (not expired) Vermont driver’s license or Vermont Non-Driver ID card. If a Vermont resident does not have a current Vermont driver’s license or Non-Driver ID card, a recent (within 3 months) utility bill with the consumers name and address will be required. To receive the retailer point-of-sale incentive under this Program, you must show proof of residency and present it to the vendor at the time of purchase.
Retailer City Website Phone
Bootlegger Bikes Jeffersonville/St. Albans https://www.bootleggerbikes.com/ 802-644-8370
Brattleboro Bike Shop Brattleboro http://www.bratbike.com/contact.html 802-254-8644
Burrows Specialized Sports Brattleboro https://www.facebook.com/BurrowsSpecializedSports 802-254-9430
First Stop Ski and Bike Shop Killington https://www.firststopboardbarn.com/ 802-422-9050
Hanover Adventure Tours Norwich https://hanoveradventuretours.com/bike-sales 802-359-2921
Jay Cloud Cyclery Montgomery Center https://www.thejaycloud.com/ 802-326-2055
Lamoille Valley Bike Tours Johnson https://www.lamoillevalleybiketours.com/vermontebikesales 802-730-0161
North Star Sports Burlington https://northstarsportsvt.com/ 802-863-3832
Onion River Outdoors Montpelier http://onionriver.com 802-225-6736
Pinnacle Ski and Sports Stowe https://www.pinnacleskisports.com/summer-shop/ 802-253-7222
Red Clover Bikes Fairlee https://www.redcloverbikes.com/ 802-222-4748
Skirack Burlington https://www.skirack.com/ 802-222-4748
Vermont Bike & Brew Thetford https://vtbikeandbrew.com/ 802-274-2277

Option 2: Consumer Post-Sale Incentive

  • Consumers have the option to claim the incentive and request check payment directly after purchase. This method will provide incentives when a retailer does not offer point-of-sale incentives (e.g. a retailer is located out of Vermont or online) or if the EV buyer prefers this option.
  • Consumers have 60-days from the date of purchase to submit an application on the eBike Incentive Program Application Form
  • Consumers must submit the following documents with their application:
    • A complete and signed Consumer eBike Attestation Form
    • Proof of Residency including a legible copy of a current (not expired) Vermont driver’s license or Vermont Non-Driver ID card. If a Vermont resident does not have a current Vermont driver’s license or Non-Driver ID card, a recent (within 3 months) utility bill with the consumers name and address will be required.
    • Sales Receipt: The name on the receipt must match the name on the Consumer eBike Attestation Form, Proof of Residency and the following application form. If the consumer’s name is not listed on the Sales Receipt, other sales documentation should be provided with the application. The sales receipt must include the following information:
      • Sales Date
      • Sale Price (before tax)
      • eBike Model
      • eBike Unique ID (if applicable)
  • The program does not issue a IRS 1099 form 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.
  • Consumers will receive their incentive check in the mail approximately 6-8 weeks after receiving approval for their Consumer Post-Sale Incentive application.

Support Center

Inquiries related to the eBike State Incentive Program, the process for a retailer point-of-sale or consumer post-sale incentive, or requests for funding status should be directed to at the Center for Sustainable Energy at:

[email protected]
1 (888) 807-0446

Replace Your Ride Program

Overview

The State of Vermont is offering a limited-time incentive program to consumers for the scrapping and replacement of their old Internal Combustion Engine (ICE) vehicle with a new or used eligible Plug-in Electric Vehicle (PEV) vehicle. This Program was established by the 2021 Transportation Bill (Act 55).

The incentive pool is available to eligible Vermont residents on a first-come, first-served basis contingent upon funding availability. Once this funding is exhausted, State incentives under this program will no longer be available. Program terms and conditions may change at any time in Vermont Agency of Transportation’s (VTrans) sole discretion.

Replace Your Ride (RYR) Incentives will be processed by the administrator, the Center for Sustainable Energy (CSE). Consumers will need to work with a participating dealership to take part in the program. Details on the incentive amounts and eligibility are provided below.

Phase one of the RYR program launched on September 14, 2022. Phase two of the program is under development and will offer additional transportation options for eligible applicants this fall.

Quick Links

Eligibility

General information regarding the eligibility requirements for the Vermont RYR incentive program is described below. Complete and detailed information regarding program eligibility can be found in the State of Vermont RYR Incentive Program Guidelines.

Consumer Eligibility

  • The program incentives are available to Vermont residents only - a current Vermont driver’s license is required as proof of residency.
  • Replace Your Ride incentives are limited to one per individual over the life of the program.
  • 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 Rebate Amounts and Income Eligibility section for details.
  • Vehicle Scrapping must happen in conjunction with the purchase of an eligible New/Used vehicle at a participating dealership.

Scrapped Vehicle Eligibility

General information regarding the scrapped/replaced vehicle eligibility requirements for the Vermont RYR incentive program is described below. Complete and detailed information regarding program eligibility can be found in the State of Vermont RYR Program Guidelines.

  1. ICE vehicle being replaced is a passenger vehicle with a gross vehicle weight of 10,000 pounds or less. ATV’s, farm equipment, etc are not eligible to be replaced through this program.
  2. ICE vehicle is at least 10 years old from current year (e.g. current year is 2022 = ICE vehicle model year is 2012 or older).
  3. ICE vehicle being scrapped can drive thirty (30) feet forward and in reverse under its own power without any assistance.
  4. ICE vehicle being scrapped can start readily through ordinary means without any assistance.
  5. ICE vehicle being scrapped is currently registered to the applicant with the Vermont Department of Motor Vehicles. The name on the registration must match the applicant’s name.
  6. ICE vehicle being scrapped has been registered with the state of Vermont for at least two years prior to the date of application. A vehicle with a lienholder listed is not eligible to be scrapped.
  7. ICE vehicle being scrapped is up to date on all vehicle registration fees for the State of Vermont.
  8. ICE vehicle being scrapped has an approved inspection sticker dated within the past year.

Rebate Amounts and Income Eligibility

Incentive eligibility will be limited to RYR participants meeting the Adjusted Gross Income (AGI) requirements in Table 1 or Table 2 below. Applicants purchasing a new vehicle will be required to meet the income eligibility requirements listed in Table 1. Applications purchasing a used vehicle through Vermont’s MileageSmart program will be required to meet the income requirements listed in table 2. AGI is determined by the purchaser’s most recent State of Vermont income tax filing as reported on Vermont Department of Taxes Form IN-111 on line 1 - “Federal Adjusted Gross Income.” The federal income tax IRS 1040 form also lists AGI on Line 11 of the 2020 and 2021 form.

Incentive amounts are listed in Table 1 according to the filing status of the purchaser.

Table 1. Incentive Amounts by Tax Filing Status and Adjusted Gross Income for new PEV purchases
Tax Filing Status Adjusted Gross Income (AGI) Limits State Incentive Amount
Individual filing as single or head of household $50,000 or less $3,000
Married couple filing jointly $75,000 or less $3,000
Married couple filing separately $50,000 or less $3,000
Individual filing as a qualifying widower $75,000 or less $3,000
Table 2. Incentive Amounts by Tax Filing Status, Adjusted Gross Income ,for USED PEV purchases through Mileage Smart
Number of Persons In HouseholdAnnual IncomeMonthly IncomeState Incentive Amount for Replace Your Ride – USED PEV
1$51,968.00$4,330.67$3,000
2$59,392.00$4,949.33$3,000
3$66,816.00$5,568.00$3,000
4$74,240.00$6,186.67$3,000
5$80,179.20$6,681.60$3,000
6$86,118.40$7.176.53$3,000
7$92,057.60$7,671.47$3,000
8$97,996.80$8,166.40$3,000

How to get your State Incentive

To receive the incentive applicant must purchase an eligible new our used vehicle from a participating dealership. Rebate incentives will be applied to the down payment of the vehicle, checks will not be sent to individual applicants, but to the participating dealership upon review and approval.

A complete and signed Consumer Vehicle Attestation Form is required. This form is the consumer’s verification to receive the rebate based on the Program Guidelines and Terms and Conditions. The name on the form must match the name on the proof of residency and the sales paperwork.

Retailer Point-of-Sale Documentation Required

Participating Retailers

View the dealer list (make sure to look for the Replace Your Ride Participant tag)

Support Center

Inquiries related to the Replace Your Ride State Incentive Program, the process for a retailer point-of-sale or consumer-direct incentive, or requests for funding status should be directed to the Center for Sustainable Energy at:

[email protected]
1 (888) 807-0446