Minnesota has rolled out a new rebate program that, when combined with federal tax incentives, could offer consumers up to $10,000 off the purchase or lease of new or used electric and plug-in hybrid vehicles.
The state rebate, introduced this week, provides up to $2,500 for new electric or plug-in hybrid vehicle purchases or leases, with a $600 rebate available for used electric vehicles.
To be eligible for the state’s financial incentive, vehicles must have been bought or leased after May 25, 2023, and must be titled in Minnesota. New vehicles are required to have a base manufacturer’s suggested retail price (MSRP) of $55,000 or less, excluding taxes and fees, while used vehicles must have been purchased for $25,000 or less.
The rebate means all Tesla Model 3 and Model Y trims quality.
Applications for the rebate will open today, Wednesday, Feb. 7, at 10 a.m., accessible via the Minnesota Department of Commerce website. This state initiative complements federal tax credits available for the purchase of new or used electric vehicles, which offer up to $7,500 for new EVs and $4,000 for used ones, according to the Star Tribune.
Additionally, federal tax law permits a credit covering 30% of the cost to install a home charger, capped at $1,000.
The Department of Commerce indicated that rebate applications for both new and used electric and plug-in hybrid vehicles would be considered on a first-come, first-served basis. The state emphasizes the meticulous processing of each application to maintain the program’s integrity, which means rebate payments will not be immediate. Applicants are advised to exercise patience, although the exact timeline for receiving rebate checks has not been specified.
For fiscal year 2024, Minnesota has allocated $10.6 million to fund the rebates, with an additional $5.2 million reserved for the subsequent fiscal year. The rebate distribution is planned to continue until June 30, 2027, or until the allocated funds are depleted, whichever comes first.
The introduction of the rebate program follows months of preparation and was authorized by the Legislature and Governor Tim Walz last year.
Walz said earlier this week, “We’re helping Minnesotans save money when it’s time to buy a new car. Check out our new rebate and see if it makes sense for you!”.
