A new state program will send money to people who recently bought an EV: ‘It’s going to be a competition’

March 17, 2024 | by magnews24.com

Acquiring an electric vehicle just became easier in Minnesota, as residents are now eligible to apply for rebates when buying a new or used EV.

The state’s Department of Commerce began accepting applications in February after the Legislature passed several bills last year to combat rising temperatures. According to MPR News, transportation is Minnesota’s largest driver of planet-warming gasses, yet EVs make up just 1% of all cars on the road in the North Star State.

The program allocated $10.6 million this fiscal year and $5.2 million next year for the rebates. It will last until June 30, 2027, or whenever the funds run out. The DOC expects to start distributing payments in April.

“It’s going to be a competition for getting in there and getting your rebate in right away,” said Diana McKeown, co-director of the Clean Energy Resource Teams at the nonprofit Great Plains Institute.

EVs or plug-in electric hybrids titled in Minnesota and purchased or leased retroactive to May 25, 2023, qualify under the program. Residents can get up to $600 when buying a used EV or $2,500 for a new EV. However, the MSRP of a new car before taxes and fees can’t exceed $55,000, while the purchase price of a used vehicle has to be $25,000 or less.

Pair those savings with the federal incentive of up to $7,500 for purchasing a new EV under the Inflation Reduction Act, and residents can save as much as $10,000, McKeown noted.

“That’s pretty significant,” she added. “That really makes it much more affordable for a lot of families that might not have considered an electric vehicle because of that upfront cost.”

Minnesota joins the likes of California and Colorado in easing the financial burden of switching to planet-friendly vehicles. According to the EPA, an average gas-powered car produces around 5.1 tons of carbon dioxide pollution a year, whereas EVs don’t create any tailpipe pollution.

“The state is doing this to incentivize the clean energy transition, particularly the transition in the vehicle space for our cars and light trucks,” said Peter Wyckoff, assistant commissioner for federal and state energy initiatives at the DOC. “One way to get folks to move faster in adopting this new technology is to offer economic incentives.”

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