With the introduction of a state rebate this week, residents of Minnesota who purchase or lease electric or hybrid vehicles could benefit from combined government incentives totaling up to $10,000 off the purchase price.
Minnesota residents who buy or lease new electric or hybrid vehicles are eligible to receive a state rebate of up to $2,500.
For used electric vehicles, the rebate amount is up to $600.
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These vehicles must have been purchased or leased on or after May 25, 2023, and must be titled in Minnesota.
To qualify for the state program, new vehicles must have a base manufacturer’s suggested retail price of $55,000 or less, excluding taxes and fees.
For used vehicles, the purchase price must be $25,000 or less.
Starting on Wednesday, February 7th at 10 a.m., consumers can initiate their rebate application process via the Minnesota Department of Commerce website.
Federal EV Tax Credits: Boost for New & Used
The state rebate is compatible with federal tax credits applicable to the purchase of both new and used electric vehicles.
For new EV purchases, individuals may be eligible for federal tax credits of up to $7,500, while used vehicle purchases may qualify for up to $4,000 under the federal program.
Additionally, federal tax legislation permits a tax credit of 30% of the total installation cost for a home charger, capped at $1,000.
Applications for the state rebate will be evaluated on a first-come, first-served basis for new and used electric and hybrid vehicles, as per the directives of the Commerce Department.
Delayed Rebate Payments Expected
The Commerce Department emphasizes that each application will undergo an individual assessment “to ensure program integrity.”
Consequently, rebate payments will not be immediate, as indicated on the department’s website.
However, the website does not specify the exact timeline for receiving a rebate check and urges applicants to exercise patience.
According to the Commerce Department, the state has allocated $10.6 million for fiscal year 2024 and $5.2 million for the subsequent fiscal year to fund the rebates.
The distribution of rebates is scheduled to be completed by June 30, 2027, or until the allocated funding is depleted, whichever comes first.