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 offered 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 had $92,500 available for the Program. The total incentive pool was available to eligible Vermont residents on a first-come, first-served basis contingent upon funding availability.

Vermont eBike Incentives were processed by the administrator, the Center for Sustainable Energy (CSE). Consumers had 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.

eBike purchasers may still be eligible for an eBike incentive from their electric utility. For information and data about the incentive utilization and program success, visit the eBike Statistics Dashboard.

Quick Links

State of Vermont eBike Incentive Program Guidelines

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 of their old Internal Combustion Engine (ICE) vehicle. The rebate amount for this program has been designated at $3,000 for each eligible scrapped ICE 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 or scrapping partner to take part in the program.

Phase 1 of the Vermont Replace Your Ride program launched on September 14, 2022 with the option to receive an incentive at the point-of-sale from participating dealerships when scrapping is combined with the purchase of a New or Used PEV. Phase 2 of the program launched on December 2, 2022 and offers consumers the option to scrap their ICE vehicle for a prepaid clean mobility card.

The three RYR incentive pathways are described below:

  • New PEV - Point-of-Sale Claim Only: When scrapping and replacing with a new vehicle, the $3,000 Replace Your Ride rebate must be stacked with the State of Vermont New PEV Program incentive application.
  • MileageSmart - Point-of-Sale Claim Only: When scrapping and replacing with a used vehicle, the $3,000 Replace Your Ride rebate will only be approved if accompanied by a MileageSmart Used EV Incentive Program Commitment Letter.
  • Other Clean Mobility Actions - Preapproved Consumer Claim Only: When scrapping and replacing with a prepaid clean mobility card, the $3,000 Replace Your Ride rebate is offered through a prepaid card to be used at eligible businesses that reduce or avoid vehicle miles traveled in single occupancy automobiles. These will be approved in accordance with Act 55 of Vermont Legislature.

Details on the incentive amounts and eligibility are provided below.

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, or an accompanying request for a prepaid clean mobility card to be used at eligible businesses that reduce or avoid vehicle miles traveled in single occupancy automobiles.

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 or requesting a prepaid mobility card will be required to meet the income eligibility requirements listed in Table 1. Applicants 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 Vermonter’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 applicant Tax Filing Status and Adjusted Gross Income. Incentive amounts are listed in Table 2 according to Household Size and Adjusted Gross Income.

Table 1. RYR Incentive Amount by Tax Filing Status and Adjusted Gross Income if replacing with an eligible NEW PEV purchase or a prepaid clean mobility card
Tax Filing Status Adjusted Gross Income (AGI) Limits Replace Your Ride 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

*The $3,000 is issued at the Point-of-Sale by a dealership if replacing an eligible ICE vehicle with a new, eligible PEV. For clean mobility RYR incentives, the $3,000 is issued directly to consumers as a prepaid card, to be used at eligible businesses, for replacing an eligible ICE vehicle.

Table 2. RYR Incentive Amount for Replaced Vehicle by Household Size and Adjusted Gross Income if replacing with an eligible USED PEV purchase through MileageSmart
Number of Persons In HouseholdAnnual IncomeMonthly IncomeIncentive 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

*The $3,000 is issued at the Point-of-Sale by a dealership if replacing an eligible ICE vehicle with a used, eligible PEV through MileageSmart.

How to get your State Incentive

To receive the incentive, an applicant must purchase an eligible new or used vehicle from a participating dealership, or request a prepaid clean mobility card. Rebate incentives will be applied to the down payment of the vehicle when claimed at a dealership, and payments will be sent to dealerships upon review and approval. For consumers claiming a prepaid clean mobility card, a “PEX” debit card will be mailed upon final approval.

For all applications, a complete and signed Consumer 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 accompanying supporting documents.

Dealership Point-of-Sale Documentation Required (Dealership Claims Only)

Consumer Direct Incentives for Prepaid Mobility Cards

Consumers that wish to replace their ICE vehicle with a prepaid clean mobility card must be preapproved to ensure the scrapped vehicle meets all the vehicle requirements. Additionally, the ICE vehicle must be scrapped through a participating scrapping partner.

To submit for Preapproval for the prepaid mobility card, consumers must send the Incentive Submission information outlined below to the administrator’s email address: [email protected]. The subject line of the email should note: “RYR + Used Vehicle Incentive Submission [CONSUMER LAST NAME]”

Consumer Claimed Documentation Required

  • Consumer Attestation Form for Prepaid Clean Mobility Card - Consumer Claims Only
  • Proof of Vermont Residency
  • Replaced (Scrapped) Vehicle Registration
  • Replaced (Scrapped) Vehicle Title
    • If scrapped vehicle is 15 year or older from the current year, and you do not have a title, alternative proof of ownership, like a bill of sale, will be required.
  • Copy/image of the vehicle inspection sticker:
    • Inspection sticker must be approved and dated within the past year
  • Bill of Sale/Receipt: (submitted after pre-approval and after scrapping is complete)
    • Bill of Sale or receipt must show proper transfer of vehicle to the eligible scrapper
    • Scrapper must be listed on the receipt and must match the scrapper identified on the Consumer Attestation Form submitted upon preapproval.

Participating Dealerships

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

Auto dealers interested in offering point-of-sale or -lease incentives to their customers will be required to complete a Participating Dealer Agreement prior to being eligible to participate. Dealers already enrolled in the Vermont Incentive Program for New Plug-in Electric Vehicles will not need to re-enroll in the Vermont RYR program, although they may need to complete a participating dealer agreement addendum depending on the date of their sign-up. New PEV enrollment also includes RYR eligibility and enrollment.

Participating Scrapping Partners

Scrap yards or scrapping partners interesting in participating in the program will be required to complete a Participating Scrapping Partner Agreement prior to being added to the eligible scrapping partner list. Scrapping partners must agree to disable the engine according to legislation.

Scrapping Partner City Website Phone
Bolduc Metal Recycling Middlesex https://www.bolducmetalrecycling.com/ 802-223-7917
Croteau Auto Parts Orleans 802-754-6920
IAA Colchester https://www.iaai.com/locations/645 802-872-7838

Participating Businesses

These businesses are eligible on the Prepaid Clean Mobility Card. Additional businesses selling eligible products or services may be added at any time - see below for details.

Business Name City Website Phone
Bike Hub Bennington https://www.ourbikehub.com/ 802-445-4000
Brattleboro Bicycle Shop Brattleboro https://www.bratbike.com/ 802-254-8644
Burrows Specialized Sports Brattleboro https://www.facebook.com/BurrowsSpecializedSports 802-254-9430
The Great Outdoors Newport, Morrisville, Enosburg Falls https://www.greatoutdoorsvermont.com/ 802-334-2831
Hanover Adventure Tours Norwich https://hanoveradventuretours.com/ 802-359-2921
Old Spokes Home Burlington https://www.oldspokeshome.com 802-863-4475
West Hill Shop Putney https://www.westhillshop.com/ 802-387-5718

The Center for Sustainable Energy (CSE) is partnering with a Visa card provider, Prepaid Expense Card, or “PEX” to issue prepaid mobility cards to approved consumers participating in Replace Your Ride. Businesses that wish to be “whitelisted” on this card may work with CSE to submit a Business Participation Agreement and understand that elements of their agreement will be shared with PEX, including Retailer Name, Merchant ID, and Terminal ID. Businesses agree to be bound to the relevant terms and conditions set forth by PEX for the use of the Visa prepaid gift card, as provided on PEX’s website at: https://www.pexcard.com/legal/services-agreement/. Once approved, consumers will be able to make purchases at the business using the prepaid mobility card. Eligible businesses must be in accordance with Act 55 of Vermont Legislature and include those that encourage alternative modes of transportation which includes:

  1. Purchasing a new or used bicycle, electric bicycle, or motorcycle that is fully electric, and the necessary safety equipment
  2. Utilizing shared-mobility services or privately operated vehicles for hire

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