In 2014, Drive Electric Vermont offered a $500 plug-in vehicle incentive to consumers at point of purchase, made possible through a grant from VLITE, a public benefit, nonprofit corporation. This funded 75 incentives through participating dealerships. The pilot program is now complete and while we continue to pursue additional funding for incentives, there are currently no funds available for Vermont EV incentives in 2015.
The list dealers participating in the 2014 incentive program is included below for reference.
The federal income tax credit for EV purchases remains available (see below). One benefit of leasing plug-in vehicles is the federal tax credit is usually included in the leasing incentive, so you don't need to worry about claiming this on your income taxes and you benefit through a lower down payment and/or decreased monthly payments on your lease.
Federal tax credits ranging from $2,500 to $7,500 are available to buyers of qualified plug-in electric vehicles. Our vehicle comparison includes the exact amounts for each model.
No date is currently in place for the expiration of these tax credits but once an individual manufacturer sells 200,000 qualifying vehicles the credit will be phased out for that maker over the course of a year.
For more information on current tax credits, visit the U.S. Department of Energyʼs Fuel Efficient Vehicle Tax Information Center.
The Fine Print: The size of tax benefit is governed by the battery size of the vehicle. Since the credit can only be claimed in the year the vehicle was put into service, the annual federal tax liability of the buyer may also be a limiting factor in the size of the tax benefit received. For leased electric vehicles, the credit can only be claimed by the lessor but a portion of the benefit is often passed along to the lessee (driver) in the form of reduced payments.
The federal tax credits for Electric Vehicle Supply Equipment (EVSE) for businesses and residents expired on December 31, 2013, but Congress could elect to renew them in future years:
Homeowners were eligible for a 30% tax credit up to $1,000 based on their charging station installation costs.
Businesses were eligible for a 30% tax credit up to $30,000 on installation costs for charging equipment.
More information on this and other efficient vehicle tax credits is available at the U.S. Department of Energyʼs Fuel Efficient Vehicle Tax Information Center.