Vermont is committed to reducing transportation emissions and helping its residents access cleaner transportation options. Through various Car Incentive Programs, the state offers financial assistance to income-qualified Vermonters looking to purchase or lease new and used fuel-efficient and electric vehicles, as well as electric bicycles and other clean mobility solutions. These initiatives are designed to make eco-friendly transportation more accessible and affordable.
Administered in partnership with organizations like Drive Electric Vermont and Capstone Community Action, these car incentive programs are funded by the Vermont Legislature. Currently, Vermont offers five main incentive programs, catering to different needs and vehicle types:
- New Plug-in Electric Vehicle (PEV) Incentive Program: Assistance for purchasing or leasing new electric vehicles. Note: Funding currently expended.
- MileageSmart Program: Incentives for purchasing high fuel-efficiency used vehicles. Note: Funding currently expended.
- Replace Your Ride (RYR) Program: Incentives to retire older, less efficient vehicles and switch to cleaner transportation. Note: Funding currently expended.
- Electric Bicycle (eBike) Incentive Program: Financial aid for purchasing new electric bicycles. Note: Funding still available.
- Electrify Your Fleet Incentive Program: Support for businesses, nonprofits, and municipalities to electrify their vehicle fleets. Note: Funding still available.
It’s important to note that while some popular programs like the New PEV, MileageSmart, and Replace Your Ride are currently fully funded, the Electric Bicycle and Electrify Your Fleet programs are still active and accepting applications. Let’s explore each of these car incentive programs in more detail:
Understanding Vermont’s Car Incentive Programs: Details and Availability
New Plug-in Electric Vehicle (PEV) Incentive Program – Funding Expended
This program was designed to make new plug-in electric vehicles more affordable for income-qualified Vermont residents. It offered incentives on a first-come, first-served basis, with higher incentives for lower-income individuals and those opting for all-electric vehicles (AEVs).
Key features of the New PEV Incentive Program included:
- Vehicle Price Cap: Eligible vehicles had a base MSRP of $52,500 or less. Exceptions were made for accessible vehicles. You can find an updated list of eligible vehicles for reference.
- Stackable Incentives: The state incentive could be combined with incentives from Vermont’s electric utilities and federal tax credits, maximizing potential savings.
- Point-of-Sale or Reimbursement: Customers could receive the incentive as a reduced price at participating dealerships or as a direct cash reimbursement.
- Vermont Residency: The program was exclusively for Vermont residents, limited to one incentive per person.
Important Update: As stated in the original alert, funding for the New PEV Incentive Program has been fully expended. Incentives are not available for purchases or leases made while funding is exhausted. Keep an eye on the Drive Electric Vermont website for potential future funding rounds.
High Fuel-Efficiency Used Vehicle Program (MileageSmart) – Funding Expended
The MileageSmart program focused on making fuel-efficient used vehicles more accessible. It provided point-of-sale financial assistance to income-eligible Vermonters purchasing used vehicles with an EPA rating of 40 miles per gallon or higher when new.
Program highlights:
- Incentive Amount: MileageSmart could cover up to 25% of the vehicle purchase price, with a maximum incentive of $5,000.
Funding Status: Similar to the New PEV program, funding for the MileageSmart program is currently fully expended. For more information and potential updates, visit the MileageSmart website.
Replace Your Ride (RYR) Program – Funding Expended
Replace Your Ride aimed to remove older, high-polluting vehicles from Vermont roads. It offered incentives to owners of vehicles 10 years or older to scrap their vehicles and transition to cleaner transportation.
Incentive Options:
- PEV Purchase/Lease: Voucher towards the purchase or lease of a new or used plug-in electric vehicle.
- Clean Mobility Options: Voucher towards active or shared mobility options like bicycles, e-bikes, electric motorcycles, public transit, carsharing, or bikesharing. Participants choosing this option received a pre-paid debit card for eligible businesses.
Stackable Incentives: RYR incentives could be combined with other car incentive programs like MileageSmart, New PEV, and eBike incentives.
Current Status: Unfortunately, funding for the Replace Your Ride program is also fully expended. For details and potential future opportunities, refer to the Drive Electric Vermont website.
Electric Bike Incentive – Still Open
Vermont’s Electric Bike Incentive program is a pioneering initiative, being the first statewide program of its kind in the nation. It encourages Vermonters to use e-bikes for daily trips, reducing greenhouse gas emissions.
Program Details:
- This program is currently open and has funds available.
For comprehensive details on eligibility, incentive amounts, and how to apply, please visit the Drive Electric Vermont website.
Electrify Your Fleet Program – Still Open
The Electrify Your Fleet program is specifically for businesses, municipalities, and non-profit organizations in Vermont. It helps these entities reduce emissions from their fleet vehicles by providing grants to replace internal combustion engine (ICE) vehicles with electric transportation options.
Program Features:
- Grant Reimbursements: Reimbursements of up to $2,500 for each ICE vehicle replaced or avoided, with a maximum of 20 incentives per fleet.
- Eligible Electric Options: Covers Plug-In Electric Vehicles (PEVs), electric motorcycles, electric bikes, and electric snowmobiles.
- First-Come, First-Served: Grants are awarded on a first-come, first-served basis.
Program Status: The Electrify Your Fleet program is currently open and has funding available.
For application details and resources, visit the Electrify Your Fleet Program webpage.
Additional EV Charging Incentives
Beyond vehicle incentives, Vermont also supports the development of EV charging infrastructure. The Legislature has authorized funding for EVSE (Electric Vehicle Supply Equipment) grants for affordable multi-unit developments and community charging locations. For those interested in EV charger incentives, please visit the Department of Housing and Community Development website.
Stay Informed About Vermont’s Car Incentive Programs
While funding for some car incentive programs is currently expended, Vermont remains committed to supporting clean transportation. To stay updated on these programs and other climate initiatives from the Agency of Transportation, you can:
- Contact the Environmental Policy & Sustainability team: [email protected]
- Sign up for the newsletter: https://vtrans.vermont.gov/climate/news-and-updates
By taking advantage of available programs and staying informed, Vermont residents and organizations can contribute to a greener future while enjoying the benefits of clean and efficient transportation.
