State of Vermont Incentives

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• MileageSmart: used vehicles
• New Electric Vehicles
• eBikes
• Replace Your Ride: replacement of an old internal combustion engine vehicle
• Electrify Your Fleet Program

MileageSmart Used High Efficiency 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. If you are financing, the interest rate must be 12% or lower. 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. Section 5 of the FY2023 Transportation Bill (Act 184) funded $12 million for the program and the FY2024 Transportation Bill (Act 62) made adjustments to the program eligibility requirements. 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

New EV Incentive Application Portal

New EV Incentive Funding Dashboard

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 below for details. 
• Lower income filers are eligible for higher incentives. 
• There is a limit of one incentive per individual per lifetime.
• The incentive program does not currently 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 plug-in electric vehicle models (all-electric or plug-in hybrid) with a base MSRP of $52,500 or less. 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. 

Incentive 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 July 2023 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.

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 approval of their application.
• 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 all-electric or plug-in hybrid models with a base MSRP of $52,500 or less. Plug-in hybrid electric vehicles must have an electric range of at least 30 miles to qualify. 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 $52,500 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

The State of Vermont is offering a limited-time incentive program to consumers for the purchase of eligible electric bicycles to reduce vehicle miles traveled in personal automobiles and their associated greenhouse gas emissions. This Program was reauthorized with $150,000 through the 2023 Budget Adjustment Act and FY2024 Transportation Bill. (H. 479).

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 at Vermont Agency of Transportation's (VTrans) sole discretion.

Vermont eBike Incentives will be processed by the administrator, the Center for Sustainable Energy (CSE). Consumers will apply to receive a prepaid debit card with the incentive amount to be processed by a participating eBike retailer. Details on the incentive amounts and eligibility are provided below.

eBike purchasers may also be eligible for an eBike incentive from their electric utility.

eBike Quick Links

For Consumers: Vermont eBike Incentive Program Application

For Participating Retailers: Dealer Redemption Form

State of Vermont eBike Incentive Program Guidelines

State of Vermont eBike Incentive Attestation Form

eBike Incentive Funding Dashboard

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 voucher per eligible Vermont resident over the lifetime of the program.
• eBike must meet UL 2849 and/or EN 15194 standards, or have at least a 1-year warranty on electric components.
• 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 Voucher Amounts and Income Eligibility section for details. 
• The incentive program does not extend to commercial or non-profit organizations.
• Incentives are not available for eBike purchases intended for resale.

eBike Eligibility

• Standard eBikes must be equipped with a battery supplying 750 watts of power or less to be eligible for a voucher. Standard eBikes must have a Manufacturer’s Suggested Retail Price (MSRP) of $4,000 or less.  
• Cargo eBikes must meet the requirements for a motor-assisted bicycle as defined in 23 V.S.A.§ 4(45)(B)(i)(II) as a bicycle with fully operable pedals and an electric motor supplying 1,000 watts of power or less. Cargo eBikes must be specifically designed and constructed for transporting loads, including at least one or more of the following: goods; one or more individuals in addition to the operator; or one or more animals. Cargo eBikes must have a Manufacturer’s Suggested Retail Price (MSRP) of $5,000 or less.
• Adaptive eBikes are standard or cargo eBikes modified to meet the physical needs or abilities of the operator or a passenger. Adaptive eBikes do not have a price eligibility requirement.
• eBikes must be sold as new.

How to get your State eBike Incentive

You must apply for a prepaid debit card prior to purchasing an eligible eBike at a participating retailer.

Complete the online application to verify your eligibility with the consumer attestation form and request your prepaid debit card. Once your application is approved the program administrator will email your incentive debit card information and your physical card will follow by mail. You do not have to wait for the physical card to arrive if you have a printout of your prepaid debit card information you can use that at a participating retailer. Processing of application materials may take 5-7 business days.

A participating retailer will apply your incentive amount to an eligible eBike purchase and they will be responsible for submitting proof of purchase to the program administrators.

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 (RYR) 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 incentive amount for scrapping an eligible ICE vehicle is either $2,500 or $5,000, depending on the applicant’s income.

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.

To be eligible for the Vermont RYR Incentive, consumers have three options:

1. New PEV – Point-of-Sale Claim Only: When scrapping and replacing with a new vehicle, the RYR incentive must be combined with the State of Vermont New Plug-in Elective Vehicle (PEV) Program incentive application through the purchase/lease of an eligible new all-electric or plug-in hybrid vehicle at a participating dealership.
2. Used PEV- Point-of-Sale Claim Only: When scrapping and replacing with a used all-electric or plug-in hybrid vehicle at a participating dealership. For eligible applicants, this can also be combined with the State of Vermont MileageSmart Program*.
   • * Although conventional non-plug-in-hybrids are eligible for the MileageSmart program, only all-electric and plug-in hybrid EV purchases are eligible for RYR incentives.
3. Other Clean Mobility Actions - Preapproved Consumer Claim Only: When scrapping and replacing with a prepaid clean mobility card, the RYR incentive is offered through a prepaid debit card to be used at eligible businesses, such as participating bike shops and car share organizations, that reduce vehicle miles traveled in single occupancy automobiles. Applicants scrap their vehicle and claim the incentive directly from CSE.

Details on the incentive amounts and eligibility are provided below.

Quick Links

RYR Application for NEW EV Purchases

Incentive Program Application Email

Replace Your Ride Program Guidelines

Replace Your Ride Terms & Conditions

Replace Your Ride Incentive Funding Dashboard

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.
• RYR 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. The internal combustion engine (ICE) vehicle being scrapped 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 being scrapped is at least 10 years old from current year (e.g. current year is 2024 = ICE vehicle model year is 2014 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 titled and registered in the name of the applicant, and has been for at least 12 months prior to the date of the application. The name on the registration must match the applicant’s name. A vehicle with a lienholder listed is not eligible to be scrapped.
6. ICE vehicle being scrapped is currently registered with the state of Vermont, and has been for at least 24 months prior to the date of application and has been registered to the applicant for at least one year prior to date of application.
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 passed the required annual vehicle inspection within the last 12 months before the date of application.

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 n eligible 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.

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

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

How to get your State Replace Your Ride Incentive

To receive the incentive, an applicant must purchase an eligible new or used plug-in electric vehicle from a participating dealership or request a prepaid clean mobility card. 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)

• Customer Attestation Form: To be completed and signed by the consumer. Submit one of the forms below depending on if the replacement vehicle is New or Used
  • “Replace Your Ride Consumer Attestation Form - for NEW vehicle purchases in conjunction with the Vermont New EV incentive program. Dealership Point of Sale & Replace Your Ride” option must be claimed
  • “Replace Your Ride Consumer Attestation Form - for USED vehicle purchases, potentially in conjunction with the Vermont MileageSmart program
• Replaced Vehicle Attestation Form: to be completed and signed by the dealership
• Proof of Vermont Residency
• Replaced (Scrapped) Vehicle Registration
• Replaced (Scrapped) Vehicle Title
  • If scrapped vehicle is 15 years from the current year or older, and you do not have a title, alternative proof of ownership, like a bill of sale, will be required.
• Bill of Sale
• For New vehicle sales only, also submit:
  • Full and complete copy of the purchase or lease agreement
  • New Vehicle registration
• For Used vehicle sales combining with MileageSmart, also submit:
  • MileageSmart Used EV Incentive Program Commitment Letter/Email

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 Replace Your Ride 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.

Participating Replace Your Ride 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.

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

Electrify Your Fleet Program

Overview

The Vermont Agency of Transportation (VTrans) is offering the Electrify Your Fleet Program (Program), which will provide up to $2,500 for the purchase or lease of EVs, including electric passenger vehicles, trucks, motorcycles, bicycles and snowmobiles. Applicants may receive up to 20 grants each. Eligible applicants include local and state governments, businesses, and non-profit organizations.

Quick Links

State of Vermont Agency of Transportation EYF Program Website

EYF Program Guidelines

EYF Incentive Program Application

Eligibility

The incentive pool of $500,000 is available to Vermont commercial, municipal, and nonprofit fleet owners with $200,000 of the funds available to applicants who are from, or serve, historically underserved communities (such as Black, Indigenous and people of color or BIPOC individuals; women; veterans; those requiring language access assistance; and communities in disadvantaged census tracts as identified through the Climate and Economic Justice Screening Tool).

The incentive amount is 25% of the purchase price, up to $2,500, for each ICE vehicle replaced or avoided. Fleet owners are eligible for up to 20 incentives over the life of the program. Nonprofit mobility service providers may receive up to 5 enhanced incentive amounts of $5,000* in addition to up to 15 incentives at the standard $2,500 amount.

Funding may be used toward the purchase or lease of any of the following, as long as the applicant can demonstrate that the vehicle funded has adequately replaced the functions of the retired vehicle it is replacing or the vehicle that would have been purchased otherwise:

• All-Electric Vehicles (AEV) with a base Manufacturer’s Suggested Retail Price (MSRP) of $60,000.00 or less;
• Plug-in Hybrid Electric Vehicles (PHEV) with an electric range of 20 miles or greater per complete charge as rated by the Environmental Protection Agency when the vehicle was new and a base MSRP of $60,000.00 or less;
• Electric bicycles and electric cargo bicycles with a base MSRP of $6,000.00 or less with a minimum one-year warranty and manufactured by a participating company in the voluntary e-bike battery recycling program, Call2Recycle;
• Adaptive electric cycles with any base MSRP;
• Electric motorcycles with a base MSRP of $30,000.00 or less; or
• Electric snowmobiles with a base MSRP of $20,000.00 or less.

All vehicles purchased or leased through this incentive program must be held by the applicant for a minimum of twenty-four (24) months.

To participate in the Electrify Your Fleet Program, the applicant must demonstrate how the purchase or lease of an electric vehicle reduces the greenhouse gas emissions of persons operating the motor vehicle fleet in Vermont.

EYF Support

For additional information about the Electrify Your Fleet Program please email the Agency of Transportation's Environmental Policy & Sustainability team at [email protected].

For general fleet electrification information and support, please visit our Business resources.