Electric Vehicles
The State of Vermont offers several programs for replacing vehicles with high-efficiency and electric vehicles (EVs). Depending on several factors, you might be eligible for up to $8,000 for a used all-electric vehicles, and up to $9,500 for a new EV. Vermont also provides up to $5,000 for used, high-efficiency vehicles (at least 40 miles per gallon). In addition, federal tax credits are available for up to $7,500 for a new EV and up to $4,000 for a used EV.
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 $3,000 through the Replace Your Ride program if you scrap your old internal combustion engine (ICE) vehicle.
Federal Incentives
Available January 2023
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.
New Vehicles
State Incentives
The state also provides incentives of up to $3,000 for a new, plug-in hybrid electric vehicle (PHEV), and up to $4,000 for new, all-electric vehicles (AEV). Incentive amounts vary based on income. Base MSRP must be less than $40,000 for PHEV, and less than $45,000 for EVs to qualify. Additionally, the Replace Your Ride program offers another $3,000 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 PHEV, and up to $2,500 for new AEV, depending on income.
Federal Incentives
Available January 2023
The Inflation Reduction Act makes several changes to past EV tax credit provisions. More information on these changes can be found on Drive Electric Vermont‘s website, though many details are not yet known. Many vehicles are eligible for a tax credit ranging from $2,500-$7,000.
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
Available January 2023
Anyone not wishing to enroll in GMP’s Home Charging Program may purchase an EV charger separately. EV chargers are eligible for a tax credit of 30% up to $1,000 when installed in a rural or low-income community.