Electric Vehicles
The federal government, State of Vermont, and Green Mountain Power offer a variety of incentives to help reduce the cost of buying a new or used EV and for installing charging infrastructure. The total value of these incentives varies significantly depending on your household income, where your vehicle was manufactured, and whether you are trading in an internal-combustion vehicle. The Vermont incentives can total up to $10,000, which can be combined with a federal tax credit of up to $7,500 and a Green Mountain Power incentive of up to $3,200. The various incentive programs are summarized below for your convenience, but Drive Electric Vermont has the most complete information.
New Vehicles
State Incentives
The State of Vermont and Green Mountain Power offer multiple incentive programs that can be stacked together for a total subsidy of up to $13,200.
- Drive Electric VT provides incentives of up to $3,000 for a new, plug-in hybrid electric vehicle (PHEV), and up to $5,000 for new, all-electric vehicles (AEV). Incentive amounts vary based on income. Base MSRP must be less than $52,500 to qualify.
- The Replace Your Ride program offers another $5,000 off the purchase or lease of an AEV if you scrap your old internal combustion engine vehicle.
- Green Mountain Power offers an additional incentive of up to $1,000 for PHEVs, and up to $3,200 for new AEVs, depending on income.
Federal Incentives
The Inflation Reduction Act makes several changes to past EV tax credit provisions. Many vehicles are eligible for a tax credit of up to $7,500. The exact amount of the credit depends on where the vehicle was manufactured. As of January 1st, 2024, this tax credit can be applied directly at the point of sale, meaning the value of the tax credit is claimed by the dealership and taken off of the sticker price of the vehicle. More information on these changes can be found on Drive Electric Vermont‘s website.
Used Vehicles
State Incentives
Used vehicle incentives are available only to income-eligible Vermonters. For used high-efficiency vehicles (not necessarily electric), the state provides 25% up to $5,000 through the MileageSmart program. For used all-electric vehicles, the state provides 25% up to $5,000 through MileageSmart, plus an additional $5,000 through the Replace Your Ride program if you scrap your old internal combustion engine (ICE) vehicle.
Green Mountain Power offers an additional incentive of up to $750 for used PHEVs, and up to $2,500 for used AEVs, depending on income.
Federal Incentives
The Inflation Reduction Act establishes a tax credit of 30% up to $4,000 toward a used EV priced at $25,000 or less that has not previously received a federal tax credit for a used EV purchase. More information on Drive Electric Vermont‘s website.
EV Charging
State Incentives
Green Mountain Power provides customers with a free Level-2 EV charger when they enroll in GMP’s Home Charging Program. The Home Charging Program is available with two EV rates, which lower the cost of charging an EV. One rate alerts customers to monthly energy peaks and discourages charging during these peak periods, 5-7 times per month. The other rate provides different rates for on-peak and off-peak hours, which are set time periods each day.
Federal Incentives
Anyone not wishing to enroll in GMP’s Home Charging Program may purchase an EV charger separately. Home EV chargers are eligible for a tax credit of 30% up to $1,000.
Updated March 2024