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 State of Vermont and Green Mountain Power incentives can total up to $13,200, which can be combined with a federal tax credit of up to $7,500 for a maximum possible incentive of $20,700. 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

State & Utility 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.

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

State & Utility Incentives

State & utility incentives for the purchase of used EVs can be combined for a maximum possible incentive of $10,000 (or $12,500 for SNAP recipients). Used vehicle incentives are available only to income-eligible Vermonters.

  • For used all-electric and plug-in hybrid vehicles, the state will provide the lesser of 25% of the vehicle’s price or $2,500 through the MileageSmart program. SNAP recipients can claim up to 25% of the vehicle’s price or $5,000, whichever is less.
  • The Replace Your Ride program offers an incentive of up to $5,000 for the purchase or lease of an AEV or PHEV if you scrap your old internal combustion engine vehicle.
  • Green Mountain Power offers an incentive of up to $2,500 for used AEVs and up to $750 for used PHEVs, 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 May 2024