Electric Vehicles
The federal government and Vermont’s electric utilities offer certain 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 buying a new or used vehicle. The Green Mountain Power incentive of up to $3,200 can be combined with a federal tax credit of up to $7,500 for a maximum possible incentive of $10,700. Drive Electric VT has a handy incentive calculator tool to help you determine your maximum incentive amount. The various incentive programs are summarized below for your convenience, but Drive Electric Vermont has the most complete information.
New Vehicles
Utility Incentives
- Green Mountain Power offers an incentive of up to $3,200 for new EVs and up to $1,000 for plug-in hybrids, depending on income.
- Washington Electric Co-op (WEC) offers an incentive of up to $1,200.
Federal Incentives
The Inflation Reduction Act makes several changes to past EV tax credit provisions. The exact amount of the credit depends on where the vehicle was manufactured. Several models qualify for the full incentive of $7,500, while others will qualify for a lesser credit of $3,750 if they meet only some of the manufacturing requirements. 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
Utility Incentives
- Green Mountain Power offers an incentive of up to $2,500 for used EVs and up to $750 for used Plug-in hybrids, depending on income.
- WEC offers income-eligible customers an incentive of up to $950 for purchase of a used EV.
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.
- WEC also offers its customers a free EV charger through its PowerShift program.
Federal Incentives
If you purchase an EV charger separately (i.e. not through a utility program), you may take advantage of a federal tax credit to reduce the cost of installation. Home EV chargers are eligible for a tax credit of 30% up to $1,000.
Updated October 2024.